Debt consolidation Plan

[deadend*]

Thank you everyone for sharing your experiences. I’ve been trying to apply for DCP. I practically spend one day to walk in to every bank to ask about DCP. I got rejected outrightly when I told them that I have HH rating. Only HSBC, Maybank and DBS actually bother to submit the application for me but all first round failed and went in to appeal for 2nd round, all failed too.

I’ve no choice but to go CCS for assistance. Prior to that, I’ve already gotten a Letter from legal for AMEX, today another call from Citibank to bring forth for legal proceedings as well despite the fact that I’ve told them am already doing the CCS process and at the stage of post counselling session so the officer said even though this will take like 4 - 6 weeks before the dmp get approved so they’l still proceed with the legal proceedings and continue calling. For those who went through CCS, how certain is the approval? The fear is hitting on me...will I be able to pull through? Am already not able to service my minimum.

Debt size is 120K, I have a car which I need it for work and is due for COE renewal next year Oct, I really can’t get a COE renewal loan even with In-house Financing? Anyone have any idea? Without the car meaning I’ll lost my job too, so it make it even worse not able to have income to pay.

My CCS 1:1 counselling is on Mon & today, I received call fr a lady from CCS saying she’s drafting my dmp proposal before submitting for internal review but I thought during the counselling session we already discussed and prepared one? Why is there a 2nd pax doing the proposal.

Kindly assist for those who have went through DMP?

Many thanks.

 

[oceanicmanta]

@deadend - what is your occupation that you must have a car ?

Was it Vivian who called you ?

I think she probably meant that the DMP proposal is being prepared. The counsellor you meant shld be the one who prepared the DMP proposal. The lady calling you is probably the coordinator, keeping applicants informed of the status.

Same thing I experienced with my relative. Vivian was the one who kept us informed of when to meet etc. but she is not the counsellor.

So far, good progress with CCS. Hope the next call will be to ask you to attend the group session. Good luck.

 

[deadend*]

Thx Oceanmania, am a PA as am serving expat dirs which will need to ferry around from meetings.

Apparently, is not Vivian. She mentioned that she is now preparing the DMP proposal for internal committee review before the clearance date to submit to creditors, so meaning if being called for the clearance session that mean approved? Do I need to pay for the clearance session?

Wonder what stage will I be at with the legal proceedings from 2 banks. From now till the next DMP payment if approved, I won’t be able to service min. payment anymore, how long can I hold?

 

[oceanicmanta]

Clearance session means that the CCS committee has agreed to support your DMP. At the clearance session (its a group session), you will be briefed about the proposal in detail, how to respond to banks, what payments to make, sign and accept the DMP etc.

After that, CCS then submits the DMP proposal to the banks (to be approved by majority votes). Most likely banks will approve if CCS supports it.

You shld know by email within a week from now whether you are invited to the Clearance Session.
The session date likely 2-3 weeks after email.
First DMP payment within 2-3 weeks after clearance session.

In the meantime, you shld keep CCS informed of any Bank action. Even if just $1, make the payment.

I am not sure about in-house COE financing. But are you able to service loan payments plus DMP payments ? Did you discuss this with Counsellor ?

 

[Izumi8]

I’ve no choice but to go CCS for assistance. Prior to that, I’ve already gotten a Letter from legal for AMEX, today another call from Citibank to bring forth for legal proceedings as well despite the fact that I’ve told them am already doing the CCS process and at the stage of post counselling session so the officer said even though this will take like 4 - 6 weeks before the dmp get approved so they’l still proceed with the legal proceedings and continue calling. For those who went through CCS, how certain is the approval? The fear is hitting on me...will I be able to pull through? Am already not able to service my minimum.

Kindly assist for those who have went through DMP?

Many thanks.

Based on the Citibank min payment due date (the earliest due date that you have missed payment, not the statement date, they are different), if count until today, is it more than 60 days?

The citibank credit card already cancelled? Have you received any lawyer letter demand for payment from Citibank?

 

[deadend*]

Thx so much for the advice so meaning if pass the CCS internal review, likelihood is approved. Yes we’ve discussed and am able to service and I never default on my car loan till date cause is essential to me. Hopefully is all good as this is the only route without DCP if not is for the worst to happen.

 

[deadend*]

@Izumi8, Yes already received Letter of Demand from Amex lawyer (amount is less than $10k so this act as a threat letter to demand for payment) but Citibank most likely next week as they just called me today to inform me. I went to Legal Clinic to consult, lawyer mentioned that only $10k then creditor able to sue for bankruptcy but when I attended the CCS infotalk, amount is $15k so am confused but Citibank is above already, really hoping for the best.

 

[Izumi8]

@Izumi8, Yes already received Letter of Demand from Amex lawyer (amount is less than $10k so this act as a threat letter to demand for payment) but Citibank most likely next week as they just called me today to inform me. I went to Legal Clinic to consult, lawyer mentioned that only $10k then creditor able to sue for bankruptcy but when I attended the CCS infotalk, amount is $15k so am confused but Citibank is above already, really hoping for the best.

For bankruptcy is $15k, if you have not received any lawyer letter from Citi yet, that means still OK. Even if got a lawyer letter also not a big deal. Thats why I was checking with you, if your Citi Credit Card already cancelled due to non-payment?

If CC not yet cancelled, min payment is still less than 60 days past due, that means still under safe zone. The person on the phone just tried to scare you.

 

[deadend*]

All my cards already terminated prior CCS cause hit more than 18x of borrowing limit. Really stressful this period. Every waking morning, different banks take turn to call. Really hope this can be over soon..

 

[Izumi8]

All my cards already terminated prior CCS cause hit more than 18x of borrowing limit. Really stressful this period. Every waking morning, different banks take turn to call. Really hope this can be over soon..

Just hitting 18x WILL NOT "cancel" your card, it is a temporary suspension only. You can still continue to do min payment every month. Once you have done enough payments to reduce the total debt below 18x, you can apply to re-instate your card. After reinstatement, you can still use the same card as per normal.

After cancellation, Citi will send letter asking for full payment of total outstanding, not just min payment anymore. This is different from suspension. The card is closed forever and you have to do a fresh application for new card next time.

Does Citi send a lawyer letter asking for min payment? If the letter still asking for min payment, that means your cards are not yet cancelled.

 

[deadend*]

Citi already sent a letter to demand for full outstanding payment last month and I’ve called them up to tell them that am seeking CCS assistance, not lawyer letter, just bank letter but today they said they’ll proceed my case to legal proceedings so am expecting to receive the lawyer letter next week. Is confirmed cancellation of my cards, both Amex and Citi.

 

[Izumi8]

Citi already sent a letter to demand for full outstanding payment last month and I’ve called them up to tell them that am seeking CCS assistance, not lawyer letter, just bank letter but today they said they’ll proceed my case to legal proceedings so am expecting to receive the lawyer letter next week. Is confirmed cancellation of my cards, both Amex and Citi.

Since already cancelled, and letter asking for total full amount already sent, when they called, did they tell you to pay certain amount? Usually if you are willing to pay at least 3% or 5% of the total amount, they can temporary let the legal action on hold?

 

[deadend*]

@Izumi8 - bank LOD first round they called so I told them I’ve already paid $100 and this is my best effort payment already and currently waiting for CCS infotalk session. Then they ok, never call anymore. Then I’ve pass Infotalk, 1:1 counselling, yesterday am they’ve called asking to pay $540 by today, I told her I really don’t have any fund coming in, then the officer said I knowyou’re waiting for CCS and I can say mostly 80% of dmp will be approved but there are some will be rejected and the waiting time is another 4 - 6 weeks so I repeat agn, are you able to pay the min. of $540 by this weekend, I said am sorry I really can’t, if like that I would send your case to lawyer for legal proceedings, I said you can’t hold, we can’t but after your dmp get approved, you can check which stage of legal proceedings we are at then.

@yhs123 - Yesterday after receiving the call I’ve informed CCS and the lady’s advice is the same as I told Citibank, am currently under CCS process but still no help.

What if dmp did not get approved, I’ll then have to face the legal action. Surprised after your dmp being approved, bank still call you up to pay a different amount? Think I read somewhere if small amount will pay according to bank suggestion but if huge gap then have to clarify with CCS. I remember during the counselling I did ask if there’s extra to pay more at certain time can I, he said can but best to go through us to tell the banks.

 

[oceanicmanta]

@deadend

banks will try to get as much as possible out of debtors. it's their job.

after DMP approved & making 1st payment, one bank called my relative & said that one of his CC balance was left out of the DMP, and asked him to pay $100 ! Bcos amount is not big, he just paid.

if u have more to repay, the experience from others is that you can call the bank & ask for a discount to clear outstanding. by all means, discuss with CCS. But dont blindly pay more without any agreement, bcos the banks will just take it. These will be covered in the Clearance Session.

 

[deadend*]

@Oceanicmanta - Actually am afraid the total outstanding calculated by them is lower than the actual. If they based on the Oct printed CBS report, the total outstanding only calculated up till Aug only, subsequent months I can’t even service the min. payment anymore, interest and late payment fee will have roll. It could be another few thousands more by now. Per your relative’s case, the amount submitted to banks close other than the missed out of 1 bank?

 

[Izumi8]

@Izumi8 - mostly 80% of dmp will be approved but there are some will be rejected and the waiting time is another 4 - 6 weeks so I repeat agn, are you able to pay the min. of $540 by this weekend, I said am sorry I really can’t, if like that I would send your case to lawyer for legal proceedings, I said you can’t hold, we can’t but after your dmp get approved, you can check which stage of legal proceedings we are at then.

Sometimes the officer has very close relationship with their lawyer friend. Both side can take their cut (more commission) if they have more cases ongoing.

As they knew you already in the process of DMP, what is the point of spending the exorbitant lawyer fees now? When eventually we know that the legal fees just add more debts into the DMP? It does not make sense for the banks to commence legal actions now, Why cannot wait just a few more weeks when they have up to six years timeframe to pass the judgement?

More lawyer fees not just burden the debtors, as the increased debt size due to lawyer fees also make the debt recovery more difficult. (Maybe they realized you have Car or others private housing assets etc?)

Anyway you can Call CCS to bring forward your next appointment (the group clearance session) to next week, to see if it is possible?

 

[oceanicmanta]

@Oceanicmanta - Actually am afraid the total outstanding calculated by them is lower than the actual. If they based on the Oct printed CBS report, the total outstanding only calculated up till Aug only, subsequent months I can’t even service the min. payment anymore, interest and late payment fee will have roll. It could be another few thousands more by now. Per your relative’s case, the amount submitted to banks close other than the missed out of 1 bank?

dont worry if the principal has increased ... after DMP is approved, each bank will contact you to confirm your DMP proposal

if total amount is higher than what CCS used, it could mean that you just need to pay for a few more months eg instead of 80 months, pay 82 months at the same monthly repayment amount that CCS proposed

some banks were proactive & gave him detailed info (ie full schedule of amount owing, repayment etc)
some banks bochap & quite unpleasant to deal with
some banks monthly amount were a few dollars different from CCS

if u get to the Clearance Session, pls call all the banks to ask them for the latest outstanding amount (best to get in writing). you shld start monitoring how much you owe. going forward, u also need to track how much you have paid and DO NOT depend on the bank to track the DMP schedule for you ... if you overpay, they will just take it.

 

[deadend*]

@izumi8 - You sounds like you working for Citi. Afraid they use Garnishee order as Citi is my salary credited bank. Ydy, CCS did call me she did mention that she’s targetting for 18th Nov clearance session if repayment date is on the 8th instead of 18th. I told them my payday is 28, best if it is on the 8th, so she said if on the 8th will mean repayment starts 8th Dec but I’ll first need to submit for internal review first before calling you and end with all the best, so don’t know is cfmed going to clearance session or not?

After the counselling session, counsellor asked me to go open account with SCB as is their requirements to do so within 7 days from counselling date even b4 dmp get approved.

@Oceanicmanta - So is calling all the banks for outstanding amount once I’m being informed of the clearance session then bring along for the clearance session is it? They need to take awhile to post me, I’ve asked a few before.

Thanks both for the great support this period.

 

[Izumi8]

@izumi8 - You sounds like you working for Citi. Afraid they use Garnishee order as Citi is my salary credited bank. .

Thanks both for the great support this period.

Not working with Citi, I gather info through forums and blogs etc. I saw previous posts here someone got a clearance session that was just two weeks from the date of one to one counselling. So I know it is possible and ask you to call CCS to bring forward, citing the urgency due to Citi. Since your one was last Monday, the earliest possible date could be Oct 30 based the two weeks timeframe. Of course maybe the forumer case was different.

 

[oceanicmanta]

After the counselling session, counsellor asked me to go open account with SCB as is their requirements to do so within 7 days from counselling date even b4 dmp get approved.

@Oceanicmanta - So is calling all the banks for outstanding amount once I’m being informed of the clearance session then bring along for the clearance session is it? They need to take awhile to post me, I’ve asked a few before.

Thanks both for the great support this period.

We got same requirement with SCB, so no surprise there.

You can start asking for the latest now. No need to bring the outstanding balance to Clearance Session. Its more for your own record, in case Banks give u a different (ie much higher) figure after DMP is approved.

Agree with izumi that u can try to request for earlier Clearance Session citing banks' actions.