We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Interest added to debt. Right or wrong?
outofmoney
Posts: 936 Forumite
Hope I am posting in the right place, if not sure someone will say!
To cut a long story short,
A couple of years back hubby had money problems, and rather than go bankrupt asked all companies if he could make reduced payments. Some passed over to debt agencies who agreed and some agreed themselves.
One particular company RBS though passed it over so we assumed they no longer had anything to do with it. However we have just realised that they are still adding interest. The amount they add each month is three times what my husband pays so he is getting nowhere.
He called the debt company who said they had asked for interest to be frozen but RBS refused. Is this legal? Can they still do this after having passed the debt to a collection agency? Is there anything we can do?
Hubby has now stopped paying them, which isn't good but it seemed pointless paying when the amount owing is just skyrocketing each month.
To cut a long story short,
A couple of years back hubby had money problems, and rather than go bankrupt asked all companies if he could make reduced payments. Some passed over to debt agencies who agreed and some agreed themselves.
One particular company RBS though passed it over so we assumed they no longer had anything to do with it. However we have just realised that they are still adding interest. The amount they add each month is three times what my husband pays so he is getting nowhere.
He called the debt company who said they had asked for interest to be frozen but RBS refused. Is this legal? Can they still do this after having passed the debt to a collection agency? Is there anything we can do?
Hubby has now stopped paying them, which isn't good but it seemed pointless paying when the amount owing is just skyrocketing each month.
0
Comments
-
Hi
Yes, unfortunately it is legal for them to continue to add interest and/or charges, they are under no obligation to stop / freeze it.
I can't offer any advise but hopefully an expert will be along shortly!
0 -
You need to put together a statement of affairs detailling your income and outgoings, and then send this to them recorded delivery, asking for all interest to be frozen and offer an amount you can afford to repay the debt. If you don't feel confident in doing this yourself then please visit your local CAB or call the CCCS for advice and help.
Total 'Failed Business' Debt £29,043
Que sera, sera.
0 -
Hubby is putting one together at the moment. But he did this two years ago for the debt company and they accepted the reduced payment. They never once mentioned that RBS would still add interest.0
-
Did you ask for it to be frozen at the time?outofmoney wrote: »Hubby is putting one together at the moment. But he did this two years ago for the debt company and they accepted the reduced payment. They never once mentioned that RBS would still add interest.Total 'Failed Business' Debt £29,043
Que sera, sera.
0 -
Hi, Not sure to be honest. It is hubbys debt not mine but he just assumed it would be frozen as most others had.0
-
Is the DCA called CMS [Credit Management Systems]?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards