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I have 12 debts which were being administered on my behalf by a Debt Management Plan (DMP) with Compass Debt Counselling of Long Eaton, Notts. I have just discovered from their near blank website that they are no longer "offering debt management services".
This has come as quite a shock as everything had been well handled by Compass to date, except for the odd late payment.
I have spent the last 3 days making Standing Order payments to most of my creditors and making some BACS payments where payments have been missed by Compass.
One of the debts has been passed through at least 2 perhaps 3 DCAs and is now with Robinson Way Ltd. which does not appear to have the best reviews! 2 other debts from MBNA have been passed to LINK Financial Services.
1. I am not questioning the legality of these transfer contracts as I believe that is no longer a defence in Law - is that correct?
2. I have noted on many websites how important it is to have everything in writing. But I would appreciate any other advice.
3. I have a telephone appointment with Stepchange but their enquiry form left me with very negative impressions and it did not appear to relate to the self employed of those with large debts - mine are around £87,000. Should I continue to try to arrange my own DMP with my creditors or find another DMP company (free)? So far 6 our of 12 have accepted my increased payment offers.
4. My situation is aggravated by the fact that I am having to overpay 2 of my mortgages to satisfy 2 different lenders but my main home loan is due to mature in August 2016. I can't sell up as my wife is a very close carer for her wheelchair-bound, registered blind mother. We are very likely to get a year's extension but any adverse credit file reports could seriously affect my chance of an extension.
5. The main home Building Society has insisted I sell my 2 Buy-to-Lets which provide £20,000+ gross per annum. I'm concerned that come August I will face an affordability test based on my revised lower income post selling the BTLs. At present I am able to overpay the home mortgage by £600 per month. The amount raised by selling the BTLs is likely to be £20K on one and about £3k on the other. I would appreciate your views on this practice of forcing someone to sell an income generating asset.
6. A recent Age Discrimination case brought against the Co-Op Bank was found in favour of the borrower. I believe this sets a precedent for all lenders that they should not discriminate on age. But when I visited my local Building Society, the very helpful advisor told us that she could not handle our "case because of my age" (69). I feel someone younger would not have to be forced to realise assets to justify a mortgage term extension. Are they within their rights to insist I sell both - the BTL that only generates £3K equity but returns £10K per year certainly seems an unnecessary sale. The other is probably sold but the purchaser is waiting to raise the deposit and is unlikely to compete before Dec 2016, but this sale avoids the £3.5K estate agent's fees.
I have a poor credit rating due to my DMP so I can't change lenders. I do not qualify for an IVA and Bankruptcy is out of the question and unnecessary as we will have an inheritance within a few months/years which would clear the debts.
Apologies for the long question.
This has come as quite a shock as everything had been well handled by Compass to date, except for the odd late payment.
I have spent the last 3 days making Standing Order payments to most of my creditors and making some BACS payments where payments have been missed by Compass.
One of the debts has been passed through at least 2 perhaps 3 DCAs and is now with Robinson Way Ltd. which does not appear to have the best reviews! 2 other debts from MBNA have been passed to LINK Financial Services.
1. I am not questioning the legality of these transfer contracts as I believe that is no longer a defence in Law - is that correct?
2. I have noted on many websites how important it is to have everything in writing. But I would appreciate any other advice.
3. I have a telephone appointment with Stepchange but their enquiry form left me with very negative impressions and it did not appear to relate to the self employed of those with large debts - mine are around £87,000. Should I continue to try to arrange my own DMP with my creditors or find another DMP company (free)? So far 6 our of 12 have accepted my increased payment offers.
4. My situation is aggravated by the fact that I am having to overpay 2 of my mortgages to satisfy 2 different lenders but my main home loan is due to mature in August 2016. I can't sell up as my wife is a very close carer for her wheelchair-bound, registered blind mother. We are very likely to get a year's extension but any adverse credit file reports could seriously affect my chance of an extension.
5. The main home Building Society has insisted I sell my 2 Buy-to-Lets which provide £20,000+ gross per annum. I'm concerned that come August I will face an affordability test based on my revised lower income post selling the BTLs. At present I am able to overpay the home mortgage by £600 per month. The amount raised by selling the BTLs is likely to be £20K on one and about £3k on the other. I would appreciate your views on this practice of forcing someone to sell an income generating asset.
6. A recent Age Discrimination case brought against the Co-Op Bank was found in favour of the borrower. I believe this sets a precedent for all lenders that they should not discriminate on age. But when I visited my local Building Society, the very helpful advisor told us that she could not handle our "case because of my age" (69). I feel someone younger would not have to be forced to realise assets to justify a mortgage term extension. Are they within their rights to insist I sell both - the BTL that only generates £3K equity but returns £10K per year certainly seems an unnecessary sale. The other is probably sold but the purchaser is waiting to raise the deposit and is unlikely to compete before Dec 2016, but this sale avoids the £3.5K estate agent's fees.
I have a poor credit rating due to my DMP so I can't change lenders. I do not qualify for an IVA and Bankruptcy is out of the question and unnecessary as we will have an inheritance within a few months/years which would clear the debts.
Apologies for the long question.
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