Hbos is this true????

pure_dead_dopey

Long story short, DMP started on 1/2/10. Most creditors been OK. So far ignored by HBOS. Received statements this morning for myself. Full payments demanded, lates charges and interest all added on. Phoned and got chap who tells me that they do this until you talk to them and they won't ever reduce the interest to 0% as they are not allowed. They also only reduce the interest for 3 months and I must check in every three months to ensure that they are still willing to follow this plan. This, I find really demeaning, I have to beg every three months for them to recognise my DMP? No other creditor has imposed these sort of conditions, are they allowed to? He also demanded I give a reason for the DMP as it was strange that previously I had an excellent payment record. I got the definite impression he thought we were doing this for fun! Sorry for rant I just wanted to be sure that this guy was not making this up as he went along to meet some target or other?

smilely

Unfortunately it sounds similar to the experience i have had with HBOS. First they wanted to consolidate all my debts into a secured loan as some part of my mortgage, and after i refused this they are now saying that they have never received any of the letters i have sent even though they were sent recorded!!! They aren't willing to accept any reduced payments at the moment and are now wanting to default the account. I'm almost hoping they do as the DCA's seem much more willing to agree to smaller affordable payments.

Hope you can get something sorted with them.

pure_dead_dopey

smilely wrote: »

Unfortunately it sounds similar to the experience i have had with HBOS. First they wanted to consolidate all my debts into a secured loan as some part of my mortgage, and after i refused this they are now saying that they have never received any of the letters i have sent even though they were sent recorded!!! They aren't willing to accept any reduced payments at the moment and are now wanting to default the account. I'm almost hoping they do as the DCA's seem much more willing to agree to smaller affordable payments.

Hope you can get something sorted with them.

thanks for your good wishes, I just can't believe this is the way they are allowed to behave, it wouldn't be tolerated in private industry that is for sure!!

immoral_angeluk

It's rubbish that they can't freeze the interest. Are you doing this yourself or are you going through a third party? Unfortunately they can place restrictions on payment plans and most creditors ask for reviews in 6 months but it is down to them sadly as to whether they'll freeze interest and charges.
How much is your total debt?

pure_dead_dopey

immoral_angeluk wrote: »

It's rubbish that they can't freeze the interest. Are you doing this yourself or are you going through a third party? Unfortunately they can place restrictions on payment plans and most creditors ask for reviews in 6 months but it is down to them sadly as to whether they'll freeze interest and charges.
How much is your total debt?

Our total debt is massive and we're with CCCS and we are in our 50s so this is the last and only chance we have of getting this all paid off or we are just going to have to go bankrupt and lose everything we've built up over the years. So it is really important to get this all paid off. We have good salaries so there is a fair amount available.

immoral_angeluk

pure_dead_dopey wrote: »

Our total debt is massive and we're with CCCS and we are in our 50s so this is the last and only chance we have of getting this all paid off or we are just going to have to go bankrupt and lose everything we've built up over the years. So it is really important to get this all paid off. We have good salaries so there is a fair amount available.

If you have a fair amount available to repay your creditors then it might be worth looking at whether an IVA would be more suitable for you if on the DMP you would be continually paying over 6 years.

pure_dead_dopey

immoral_angeluk wrote: »

If you have a fair amount available to repay your creditors then it might be worth looking at whether an IVA would be more suitable for you if on the DMP you would be continually paying over 6 years.

We're in Scotland so it would be a trust deed, we felt it was better to try to pay it all back rather put house etc at risk. I had a bad accident 3 years ago which caused a lot of the probs so we will be getting an amount of compensation, just don't know when yet or how much. We discussed with CCCS and we all thought it was better to have a go at a DMP. It is mostly going well but the sheer arrogance of that guy this morning really annoyed me, I have a responsible job and would never normally expect to be spoken to like that in the normal polite course of business. Sorry rant over.:o

immoral_angeluk

pure_dead_dopey wrote: »

We're in Scotland so it would be a trust deed, we felt it was better to try to pay it all back rather put house etc at risk. I had a bad accident 3 years ago which caused a lot of the probs so we will be getting an amount of compensation, just don't know when yet or how much. We discussed with CCCS and we all thought it was better to have a go at a DMP. It is mostly going well but the sheer arrogance of that guy this morning really annoyed me, I have a responsible job and would never normally expect to be spoken to like that in the normal polite course of business. Sorry rant over.:o

Ah apologies I didn't see you were from Scotland. In which case I'm utterly clueless...:rotfl:

DarkConvict

DMPs are just informal arrangements, so they can and probably will default you if you go under the minimum payment.
They can do whatever they want to the account (within the law) and sadly several creditors are well known to be a problem in a DMP. They could drop the interest but the agent on the phone won't have permission, it would have to go further up the chain.

pure_dead_dopey

DarkConvict wrote: »

DMPs are just informal arrangements, so they can and probably will default you if you go under the minimum payment.
They can do whatever they want to the account (within the law) and sadly several creditors are well known to be a problem in a DMP. They could drop the interest but the agent on the phone won't have permission, it would have to go further up the chain.

thanks its just the way they speak to me, like I am less that s*** on their shoe. It appeared to go against us that we had always been up to date before, you just can't win.

smilely

If you are in Scotland have you been advised of the Debt Arrangement Scheme? It is basically a DMP, but is more formal, and the creditors have to freeze interest and charges if it is put in place. This could be better than trying to fight with them? You need to see someone local to you to have it setup and even if some for your creditors don't agree it can still be setup and they have to stop interest and charges if it is deemed fair and reasonable by the accountant in bankruptcy. Unlike a trust deed or bankruptcy your home isn't at risk at all. If you haven't looked in to this it might be worth a shot.