Even though you’re on a DMP, you’ll still receive letters from your creditors. You’re their customer and they have to let you know what’s happening with your account. It’s important to read the letters you get from your creditors. Some will be automated letters, but others give you important information about your debt with them.
You don’t need to send us the letters you receive from your creditors. Below are some guidelines to help you to deal with any letters you receive.
Final notice/Final demand
A creditor might send a final notice before a default notice and before they pass your account to a debt collection agency. This gives you a final opportunity to repay the debt in full.
Explain to your creditor that you can’t pay in full and continue to make payments through your DMP. Keep the letter for your records but you don’t need to take any further action. If you get a letter telling you that your debt has been passed to a debt collection agency, update your plan with their name, address, account number and any balance change.
Default notice
A creditor will send this if you’re not making the agreed, contractual payment.
If you receive a default notice, explain to your creditor that you can’t pay in full and will continue to make payments through your DMP. There’s nothing else you need to do now, but let us know if a collection agency contacts you about the debt, or if you get any court paperwork.
Court paperwork
If you get any letters or forms from a court, contact us for advice. We’ll help you complete any forms and give you full instructions on what to do next. It’s important to act straight away as letters from a court often have a tight deadline to reply, and if you ignore them further court action could follow.
Debt passed to a debt collector or solicitor
This will say that the debt has been passed to a debt collection agency.
You can visit the My debts page to update your plan with the new name, address, account number and any balance change. We’ll then update your DMP and start sending payments to the new creditor.
Creditor chasing payment
We usually send payments to your creditors within 5 working days of receiving cleared funds from you. Your agreement explains the reasons when this may not happen, along with the possible consequences.
We disburse funds to creditors every day by BACS or cheque, so it may help if you explain to your creditor that you’ve made a payment and that it should reach them soon.
It can also take a few days for creditors to update the balances of your accounts after we’ve sent your payment.
Creditor arrangement has expired
The creditor needs to check that your situation hasn't changed.
All you need to do is send them a copy of your up to date budget or contact us and we’ll do it for you.
Arrears notice
Creditors have to keep you informed about the status of your account. Arrears are the difference between your monthly contractual payment and the payment they receive through your DMP. This means the arrears will increase every month.
You can explain to the creditor that you’re unable to pay the arrears and that payments will continue via your DMP but you don’t have to respond to this letter if you’d prefer not to.