Advise Please DMP issue

Useless_with_wonga

Hi Guy's
To cut this short i'll try and be brief. We entered a DMP in OCT with Payplan. All going smoothly to date in that 3 lots of payments made OCT/NOV/DEC all taken by the creditor's.
Anyway i contacted them individually as none had replied to my letters enquiring as to the position with interest and charges on my accounts.
Turns out RBS have frozen all on our Mega loan:D Still adding interest/charges on to the overdraft:eek: RBS mint have frozen all:D

So question 1/ What can i do about the charges/interest being added onto the O/D? I think the DMP payment to it is £10 PM and they are adding £15 PM to the account so the balance is growing that can't be helping anyone, can it?????

MBNA appeared to have sold on their debt to a DCA but when i called although they informed me all interest etc had been frozen:D they stated MBNA still owned the debt and if they could not get me to settle (No chance not enough money to even be anywhere near half of what they would want)
or get me onto a monthly payment plan at £250 PM which is £130 more than they get on the DMP and again i can't afford it they would send the debt back to MBNA to either seek legal resolution or sell it on to a DCA.
I am confused by this i thought they were a DCA but they seem to be saying they are not. In the meantime said the nice man they will continue to accept the DMP as a token payment toward the account so frustrating they are getting what i can give yet they still want more.Any thoughts?

doodledo_2

Sorry I don't know much about DMPs but shouldn't the people handling your DMP be dealing with this for you? Have you spoken to them about what happens with the charges.

Good news on the two who have stopped interest

edinburgher

Hi mate

I found Payplan to be very good, but like yourself, I couldn't get them to freeze charges/interest on my overdraft either (in the two years I was with them!) I tried badgering HBOS (my bank) too, but they said that there weren't any charges as such and that they were just debiting interest earned while the account was in credit.

Which is clearly nonsense, as I never earned a tenner a month in interest in all the current accounts I've ever held

I never found a way around this and it remains the same after 3-4 years. With any luck your payments will outstrip the 'interest' soon enough, but I can't think of any way to have it stopped in the meantime.. It's a bizarre way to run accounts (in essence, my o/d account is still open, I just can't use any of the services). Typical example of the banks wanting to have our cake and eat it too...

In the meantime said the nice man they will continue to accept the DMP as a token payment toward the account so frustrating they are getting what i can give yet they still want more.Any thoughts?

I'd continue paying the token sums and hope they sell it on to a 'real' DCA - in my experience they're a heck of a lot more reasonable than the collections departments of the banks themselves. This might give more room for negotiations on !!!!!!, if this is a route you're able to take at some point in the future. Also, if you can't afford to pay more there's no other way for it - don't kill yourself trying to meet unfair payment demands when the account is already in default. It's not as if your credit history is going to get worse than it probably is at the moment.

Edit: That last paragraph was meant to sound more cheering than it does!