Can I claim under Hardship?

babinaba

I am currently on a Debt Management Plan which I have been on since March this year. I've managed to pay the agreed amount each year.

Would I be able to use this as a reason why I would be eligible for a hardship rebate of bank charges? The charges are for an account that I'm still trying to pay back but have not used for over a year as I couldn't keep up with paying the charges back plus all the other bills - so it kind of spiralled out of control.

If the bank agreed - would they force the use of the money to go to the debt I owe them, or would I be able to have the money in my other account which I'm managing fine now that I'm on a DMP. Having the actual money would help pay back a bit more of all my debts rather than that one with the bank.

Any help would be great.

Oh PS - I've only just found out about hardship charges recovery from a thread on another forum - would this hinder my chances because I did not apply sooner when my debts were spiralling and would they now take the opinion that because I'm in a DMP that I'm managing fine?

Ta

natweststaffmember

babinaba wrote: »

I am currently on a Debt Management Plan which I have been on since March this year. I've managed to pay the agreed amount each year.

Would I be able to use this as a reason why I would be eligible for a hardship rebate of bank charges? The charges are for an account that I'm still trying to pay back but have not used for over a year as I couldn't keep up with paying the charges back plus all the other bills - so it kind of spiralled out of control.
Under financial hardship rules NOW the onus is on you with regards to doing something about the arrears which you have done. The bank can look into the hardship element but I doubt they would see any exceptional circumstances to pay out a claim to be honest.
If the bank agreed - would they force the use of the money to go to the debt I owe them, or would I be able to have the money in my other account which I'm managing fine now that I'm on a DMP. Having the actual money would help pay back a bit more of all my debts rather than that one with the bank.
They would offset it against any money owed. Who are the other debts with?
Are there any credit card/store card and/or catalogue accounts you can reclaim from?
Any help would be great.

Oh PS - I've only just found out about hardship charges recovery from a thread on another forum - would this hinder my chances because I did not apply sooner when my debts were spiralling and would they now take the opinion that because I'm in a DMP that I'm managing fine?

Ta

Which forum? and yes I think that last sentence is probably true.

babinaba

Hi thanks for your reply

The DMP includes 3 credit cards and 1 catalogue (1 of the credit cards I already claimed charges back on). They are all with debt collecting agencies - would this matter if I wanted to reclaim from them? And would each successful claim to go paying off the balance for that particular account? I have quite a large loan which is on my DMP that I would prefer any additional money received to go towards if that makes sense?

Pity about the hardship claim as ditto towards the loan.

thank you

natweststaffmember

babinaba wrote: »

Hi thanks for your reply

The DMP includes 3 credit cards and 1 catalogue (1 of the credit cards I already claimed charges back on). They are all with debt collecting agencies - would this matter if I wanted to reclaim from them? And would each successful claim to go paying off the balance for that particular account? I have quite a large loan which is on my DMP that I would prefer any additional money received to go towards if that makes sense?

Pity about the hardship claim as ditto towards the loan.

thank you

Anything you reclaimed would go towards paying off the credit cards so it will reduce the overall amount left to pay which is a positive.

babinaba

hi

Thanks for that. If I claim the credit card and catalogue charges will this affect my DMP payment? i.e. if the overall balance reduces, can they turn round and say that they want more per month than what they are already receiving? As I wouldn't be able to afford more per month at the moment and probably not next year either as we won't be getting any pay rise at work so my circumstances will not have changed at all.

Thanks

natweststaffmember

babinaba wrote: »

hi

Thanks for that. If I claim the credit card and catalogue charges will this affect my DMP payment? i.e. if the overall balance reduces, can they turn round and say that they want more per month than what they are already receiving? As I wouldn't be able to afford more per month at the moment and probably not next year either as we won't be getting any pay rise at work so my circumstances will not have changed at all.

Thanks

I personally think you need to speak with your DMP provider but even if the payment remains the same the debt is paid off a lot more quickly which is yet another good thing.