Payplan witholding payment to creditors

Madison

I've been in a DMP with Payplan for coming up to six years and from January this year, they started witholding payment to my creditors everytime there is a bank holiday which causes one of them (Lloyds TSB) to charge a late payment fee. They've done it again this month, my payment to them left my account on 28th August and now, six working days later, it still hasn't been dispersed, even though justabank shows it as having been received. Their bank is part of direct payments so the money should be in their account the day it leaves mine. They've failed to respond to emails and it's impossible to get through to them on the phone. Anyone else have this problem with Payplan and are they subject to any kind of regulatory body.

twentytwenty

Hi Madison

I haven't had this problem with PayPlan, but I have only been with them for 1 year. Could you tell me what happens at the annual review. Mine is coming up next week. Do they need new paperwork (bank statements, tax returns, wage slips etc). Sorry I can't help on your query, but if you can help on mine many thanks in advance.

MyLastFiver

OP - Payplan pay your creditors the day after your money arrives with them. If your payment to them is delayed by a bank holiday, their system pends a further 7 days (or it might be 5) before attemping to make the payments again. I've had this argument with them but they just say "it's the computer- there's nothing we can do". It's rubbish that clients are penalised because of bank holidays, or even the way weekends fall, but there is apparently nothing you can do about it other than ask your creditor to remove the late charge.

Twentytwenty - you don't need to send them paperwork for your annual review. They just take you through your budget again. They ask you if you can increase payments. If you can't do the review over the phone, say, because you work during business hours, you can just make the changes to your budget on Justabank, then your personal case worker reviews it.

Brussel_Sprout

Hi Madison,

What day of the month do you get paid on? I get paid on the last Friday of every month so it varies from month to month - so I make my payment to payplan on the 1st of each month - the only time this alters is of course on new years day, but I've never had a problem with the money reaching creditors on time.

Might be worth changing your payment date

Madison

Thanks for the advice everyone - I get the same excuse from Payplan regarding the bank holidays. I've got the ones in December/January left before I'm debt free so I'll just make a minimum payment to Lloyds TSB - the only creditor I receive a late payment fee from as all the others have moved my payment due date to a month after my salary date. I've asked Lloyds TSB to do this but they won't budge. They're also the only creditor charging me interest, at a high rate, so I'll never use any of their products again. I even moved my bank account and home insurance from the Halifax when they merged.