on CCCS DMP - requesting creditors to stop interest

andy40

Im have been on a DMP with CCCS for the last few months. All of my creditors have accepted this but most are still charging the same rate of interest, which in some cases is quite high.
I beleive I can ask them to stop all interest, and use some part of the banking code to support this. Is this correct? Does anyone have any advice on how best to go about this?

Apologies if this question has been asked before (Im sure it has) but I cannot find a answer here.

many thanks.

Tixy

Hi Andy

You can ask for interest to be stopped but it is entirely up to the bank whether they choose to do so, and banks react differently to each case. Has CCCS given any reason why they think the banks are still charging interest?

From what I have gathered on here banks are sometimes more likely to continue to charge interest if they think your budget is excessive in any area or sometimes if you are paying very close to your original minimum payments.

Here is a national debtline letter asking the bank to reconsider stopping charging interest - http://www.nationaldebtline.co.uk/england_wales/temp/3460_96751.pdf which you could amend for your circumstances. If that doesn't work maybe write asking if they will at least reduce interest.

Sometimes after 6m or so some of your debts may be sold on to DCAs who may be more willing to negotiate.

andy40

Thank you Tixy, thats helpful.
Andy

Deep_In_Debt

It also takes a time for creditors to stop interest. I've been on my dmp with CCCs for about 2 years and one creditor finally froze interest in October last year - nearly a year after I started. I guess you just have to keep on at them or as Tixy says, sit it out and wait for the debt to be sold to a DCA.

andy40

The link to the National Debtline sample letters section is http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6