What is the best way to get the interest stopped on Debts whilst on a DMP?

mozzyc

HI

Well we've been in our dmp now for almost 5 years, and we're still paying interest on most of the debts, so pretty much not getting anywhere.

I've asked payplan to send our a request, but we've had absolutely no luck there. So now we're going to write letters ourselves.

Is this the best option?
Should we just keep sending letter after letter until we get a result?
We've got about 9 creditors on the DMP, quite a few are debt collection agencies. Should we write to them or to whomever the debt was originally with?

Thanks!

MyLastFiver

This is a bit strange. Why will Payplan not request interest stopped? Why have you spent the last 5 years breaking your backs just to pay your creditor's charges?

To answer your questions, yes I would write to whoever is currently administering the debts, so this will be the DCAs. In your letters, I would tel them that there is no point in you servicing a debt you have no hope of repaying.

If you do actually stop paying them you run the risk of them taking you to court meaning you will get CCJs, but at least a court will stop interest. However, I expect that the creditors will agree to stop interest rather than take court action...

GeorgeUK

Are you saying that some of the DCA's are still charging interest? This should only happen if it is stated in the T&C that a 3rd party will be able to continue charging interest.

If you have charges, i would claim them back.

Are you in Scotland or England?
Could you try a DAS?

mozzyc

You know, i never even thought of that. I must send off for all my agreements and look that over. If i could claim back some of those charges and use them to clear the balance, that would be great.
I got a statement from NDR (nationwide debt recovery) today showing payments i've made and added interest (which is charged at 28.8apr). I will have a look at that though!!!