Repayment agreements

mm2000

I have repayment agreements for several cards which I have negotiated myself and been paying since 2001. Now one company (Co Op) have requested I increase my payments to 1% of the balance per month as they cannot continue to accept the amount I have been paying. I've written a letter of complaint as I am sure that the increase to 1% was never mentioned before when I originally negotiated the agreement. I cannot afford an increase at the moment, let alone £35 extra which will bring me up to the 1% they have requested. They are sticking to their guns and not budging. Anyone have any advice before I contact the Financial Ombudsman Service to see if I can get them to make Co op accept my offer. Co op intend to pass the debt on to a debt collection agency in 8 weeks time. The debt is for over £7,000. what are my chances of getting the interest frozen again by the DCA.

milliejon

In my experience, the companies will contact me every 6 months or so and ask me to increase the repayment. Just stick to your guns.

Does this sample letter from the National Debtline help?

There are other samples there too about freezing interest etc.

Addicted2Chocolate

it is my understanding that an informal DMP is not legally binding on the creditor. when they originally accept it they state they will review it at later date. they do have the right to ask for higher payments, i am sorry but i dont see you have grounds to complain. the fact you cant afford the higher paymetns is a separate issue and you might seek advice from CCCS/CAB ....

mm2000

Addicted2Chocolate wrote:

it is my understanding that an informal DMP is not legally binding on the creditor. when they originally accept it they state they will review it at later date. they do have the right to ask for higher payments, i am sorry but i dont see you have grounds to complain. the fact you cant afford the higher paymetns is a separate issue and you might seek advice from CCCS/CAB ....

Under the Bankers code of practice a lender is required to give in writing all details agreed when making a DMP. Co op did not make any such claims that a 1% repayment would be required at any time in the future after agreeing to accept my offered payments. I have successfully had this upheld by the Financial Ombudsman Service against two of the companies I owe money to and received compensation against them.