Your views and questions.

Moderators: TalbotWoods, JaneClack

User avatar
By Hampshire_Paul
#167171 I remember reading something on here a while back about CCCS not offering strictly pro rata offers.

In my experience this is actually true. From my plan I can see that they have calculated the payments using contractual payments as the basis. For the purpose of my plan they have set the contractual payment for each credit card/store card as 3% of the total (in reality they range from 2-4% accross the accounts I have) whilst for my overdraft they have set the contactual repayment as 5% of the total and calculated the pro rata payments accordingly, meaning a slight advantage to my bank (HSBC).

This doesn't make a huge difference to the amounts but could be where the confusion sets in :?

Anybody have any idea why they should treat overdrafts differently?
#167182 As far as i am aware its more based how much you owe to each creditor or it is in my case
User avatar
By Yogi Bear
#167188 I know I've come across this "contractual payment" method of calculating pro-rata offers before, but I can't remember whether it was a CCCS DMP or not. It doesn't say on their website how they do it.

Certainly the 'normal' way (the way everyone else does it) is just to use the outstanding balances as the basis, and that's the way a Court will do it. This other method is an acceptable alternative - or evidently the creditors seem to accept it. It's seen as 'fairer' in some ways for a mix of loan accounts where the contractual payment is fixed at the start and credit card accounts where interest might be added, increasing the balance - but it's a bit artificial with an overdraft where there isn't normally a contractual payment to start off with :?
User avatar
By The bear
#167262 When I started on my DMP, I queried this and CCS explained this other method was used so as to be fair to all creditors, as some charge higher interest than others. It does seem to be accceptable to creditors and assume it is the normal way CCCS do things.
User avatar
By Hampshire_Paul
#167280 Well as long as it works, I'm not particularly bothered as the difference it makes (in my case anyway) is fairly minimal - seems to be the done thing with CCCS so I'll just go with the flow.