Payments to Payplan

c7sdus

Hi,

Hope someone can advise. I have been paying Payplan £1189.72 for the last 29 months and have never missed a payment. On the PP website it states that my DMP started at £72011.56, I have paid £34501.88 and have £37509.68 outstanding. If I carry on paying my monthly ammount then creditors should be paid off July 2011.

Payplan have told me that this does not take into account any interset added since DMP started and that they will contact all creditors at end off plan to apply for interest to be removed from accounts. What they are not able orwilling to tell me is how successfull they are in having interest removed.

I have contacted all my my creditors this morning as it has really been worrying both wife and I and there has been £11.5K in interest been added, most of it by Lloyds TSB (aprox 10K) so my total outstanding as of right now is £49081.02 not the £37509.68 that payplan have.

Can anyone please advise how successful comany's like Payplan are in general but with Lloyds TSB particularly in having this interst removed.

Sorry such a long winded start but as you can see it's my 1st post

cheers

C7

skintandscared_2

Welcome to the board! It may be worth posting this in the "ask CCCS a question" thread at the top of this forum. I am just entering a DMP with CCCS and I BELIEVE that the idea is to try and get the creditors to freeze or dramatically reduce their interest rates from the start (or as soon as possible) NOT wait and have it taken off at the end. But I may be wrong. I know there are lots of people on here with DMPs with PayPlan who may be able to let you know what their situations are.

c7sdus

skintandscared wrote: »

Welcome to the board! It may be worth posting this in the "ask CCCS a question" thread at the top of this forum. I am just entering a DMP with CCCS and I BELIEVE that the idea is to try and get the creditors to freeze or dramatically reduce their interest rates from the start (or as soon as possible) NOT wait and have it taken off at the end. But I may be wrong. I know there are lots of people on here with DMPs with PayPlan who may be able to let you know what their situations are.

thanks will post it in ''ask CCCS''

tyllwyd

I think even CCCS might struggle to give you a sensible answer - you are asking what might happen in three years time, when the companies in question are in the middle of a huge change, not to mention the economy and the political situation. Everything could be different then - LloydsTSB as it is now won't even exist - so I think anything they could tell you now would just be guesswork.

skintandscared_2

tyllwyd wrote: »

I think even CCCS might struggle to give you a sensible answer - you are asking what might happen in three years time, when the companies in question are in the middle of a huge change, not to mention the economy and the political situation. Everything could be different then - LloydsTSB as it is now won't even exist - so I think anything they could tell you now would just be guesswork.

tyllwyd, my point was not whether Lloyds WILL write off the interest at the end or not, it was whether the correct action is being taken now - i.e. shouldn't PayPlan be trying to get the interest frozen NOW?? It may be that they've tried and Lloyds have refused, I don't know. But I definitely think it's worth asking PayPlan whether they have tried to have interest frozen/reduced on any of the debts already. I haven't yet read about a DMP where all the interest is still being added and there's a "will they/won't they" panic at the end to have interest taken off?? At what point would you know that the only payments left are interest only??

tyllwyd

I was assuming that PayPlan would have written to everyone at the start of the DMP and asked for interest to be frozen, and then maybe they contact them again at the end of the plan, and if there has been interest added, they try to negotiate to get it written off?

skintandscared_2

tyllwyd wrote: »

I was assuming that PayPlan would have written to everyone at the start of the DMP and asked for interest to be frozen, and then maybe they contact them again at the end of the plan, and if there has been interest added, they try to negotiate to get it written off?

Yes I know, that's what I assume happens too, but it doesn't sound like that's the case with this one??? It's where the OP says "they will contact all creditors at end off plan to apply for interest to be removed from accounts"... That doesn't sound right???

c7sdus

tyllwyd wrote: »

I was assuming that PayPlan would have written to everyone at the start of the DMP and asked for interest to be frozen, and then maybe they contact them again at the end of the plan, and if there has been interest added, they try to negotiate to get it written off?

I phoned Payplan just now and they have advised me that they have asked TSB for the interest to be frozen on our debt's ( 2x loans & 2 x C/C ) but they are still charging interest on both loans & my C/C, no interest on wifes C/C (smallest debt £1200).
PP still say that they will contact creiditors at end of plan at which any ammount owed will be interest as they wrote to every creditor at start of DMP to confirm money owed so once these ammounts have been cleared then anything still owed will be interest added She said that they have a very good record of getting interest reduced or cleared but it could change by end of DMP due to current climate in financial institutions.

moneyspender1981

skintandscared wrote: »

Yes I know, that's what I assume happens too, but it doesn't sound like that's the case with this one??? It's where the OP says "they will contact all creditors at end off plan to apply for interest to be removed from accounts"... That doesn't sound right???

I'm the same, although on a less scale. I have been paying payplan for almost 5 years, and now have months left. I called a few creditors and made settlement offers early.. however the balance was always more. payplan told me the same, basiclally they ask at the end to wipe off your interst..... but most creditors told me they would discount some of it but not all. To me it was worth making settlement offers early as at the end of you debt plan technically your debt free so the ones you owe interest to know this so feel no problem in asking for it.

think its worth asking payplan what there usual success rate is with this... sorry couldnt help anymore

c7sdus

moneyspender1981 wrote: »

I'm the same, although on a less scale. I have been paying payplan for almost 5 years, and now have months left. I called a few creditors and made settlement offers early.. however the balance was always more. payplan told me the same, basiclally they ask at the end to wipe off your interst..... but most creditors told me they would discount some of it but not all. To me it was worth making settlement offers early as at the end of you debt plan technically your debt free so the ones you owe interest to know this so feel no problem in asking for it.

think its worth asking payplan what there usual success rate is with this... sorry couldnt help anymore

Payplan told me that they have a very good record of getting debt reduced or cleared at end of DMP, I just worry that this wont be the case for us !!!

skintandscared_2

This has really terrified me now!

When you make your payments to your DMP provider (in my case, CCCS), the payment they make to the creditor is obviously less than your minimum payment. If interest is not frozen or reduced, the debt will just constantly increase??? If, after 5 years or so, you've actually paid what the due amount was on the date you started your DMP, the accruing interest could amount to twice as much as you've already paid??!!!! How would anyone EVER end a DMP and what would be the point in starting once instead of an IVA or bankruptcy?!