Debt Management Programme

[moggie 939]

I was recommended by my Bank to contact CCCS as an approved free of charge operation who they (my Bank) approved and would abide by their recommendation.
I have not taken out a DMP with CCCS yet as I have tried to sort debts out myself - the amounts are less than 13k in total with 2/3 owed as an unsecured loan - we are pensioners on basic pensions.

Now, I can see that my Bank would be sympathetic and indicate that they would accept the payments suggested by CCCs.for their 1/3. However, I was told by someone that the loan company (a reputable high street bank) did not have to abide by any Dmp and could chase us separately - although we have no arrears at the moment - but have been on reduced agreed payments for a few months.

Is it correct that a Dpm relys on ALL creditors accepting and can be refused by any one creditor? If that is true would CCCS then be unable to set up a plan? What would be the outcome? Would my Bank then refuse a reduction on their part of the debt due to this? I am really confused.

Thanks you experts

Moggie

[Claud.Butler]

The Citizens Advice Bureau could give you impartial advice on financial matters.

[SMP]

Moggie, I have with had a DMP with the CCCS for over 2 years now and they have made my life so much easier. Please contact them and have a chat, you are under no obligation to take up a DMP. They will be able to advise you on all the things you have mentioned. Their number is 0800 138 1111.

[johnnybriggs]

It doesn't particularly matter whether the creditors actually agree or not. They don't have "voting rights".

As long as you are paying your disposable income to the CCCS they will pass it on the creditors without taking a fee directly and really you can't do more than that.

If one of your creditors disagreed with the IVA, they aren't going to send the money back to you!

They do have the right to take you to court but are extremely unlikely to given that you are doing your best to pay your debts though a well known 3rd party..

[moggie 939]

Thanks Johnnybriggs

That is what CCCS have told me. This Bank is the main creditor and they will be getting over 57% of the available monies and as that is a quarter more than I have been paying them under 'arrangement' they should be reasonably happy!

Just one further point. As a pensioner on State Pensions and living in Rented Accommodation, even if they did try and take me to Court eventually and the other 4 creditors had all agreed the DPM, then would not the Court only issue the same payment?

Thanks again

Moggie

[johnnybriggs]

Yes thats right, a county court judgement is designed to be fair and you can apply to have it varied if you think it is unfair.

Its very unlikely the creditors would take you to court when you are in a dmp for that very reason.

If they do you can get free advice from National Debtline, CAB, CCCS or Debt Advice Foundation.

There won't be bailiffs or anyone knocking on your door!

[moggie 939]

Thanks for your replies on this.

Regards

Moggie

[Ermieox]

A DMP is not the same as an IVA. Creditors are obliged to agree to an IVA but have no obligation to agree to the terms of a DMP and even after initial agreement, they can change their minds at any time (the situation I am currently facing).
The CCCS have been incredibly helpful to me despite being overloaded by enquiries at present. The CAB are also pretty good but certainly my local Branch isn't taking on any new Debt clients at the moment.
If you bank with Lloyds then good luck to you as they are (so I am informed and have experienced first hand) one of the most difficult to deal with.

Good Luck getting things sorted out.

[moggie 939]

Thanks for that - I am with Halifax and it was they who told me to go to CCCS as they always accept their dmps!!

Moggie