Citi Credit Card Astronomical Interest Charges

mikon

I owe Citi CC £12,000 and I my financial circumstances have changed which means I have gone to CCCS and arranged a DMP. I have written to CITI and explained the situation and asked for interest and charges to be frozen I also sent a £1.00 token for Mays payment which they have cashed my £1 token but charged me £386 interest and £12 charges. Next month they want a monthly minimum payment of £1424. What will be the interest on that figure this is very worrying.

My concern is that i cannot meet the current monthly minimum payment and these interest charges are just compounding the problem.

Can anyone give me some advice.

Question Will I be able to claim these charges back once the DMP is up and running?

Question 2 Can anyone suggest anything?

Question 3 Has anyone had similar experience with CITI credit cards.

Any help is much appreciated.

ladybez

sorry your post seems to have slipped off the first pages without an answer.
I am no expert but will give you my six-pence worth!!
It seems that it does take a little while for DMP's to get up and runing and not all creditors will be happy with the amount offered, but you can't pay what you haven't got and its important to keep paying, even small amounts, regularly. Citi do charge £12.00 for each time they write to you when a full payment has not been made and yes, it does make matters worse. I don't think you can reclaim these charges even when a DMP is up and running. The amount they are asking you to pay is the unpaid balance of Aprils payment plus the May payment (and any overlimit amount) this is one of their standard letters. The interest charge is the amount calculated on the actual balance outstanding. I would refer any correspondence you get from them to CCCS for them to deal with. Good luck in sorting it all out.

DarkConvict

The first 6 or so months of a DMP can be difficult. But legally they can continue to charge you interest in accordance with the terms and conditions of the agreement you signed. £12 is also the maximum legal charge as defined in the high courts by the OFT.

If the card was taken out pre april 2007, it maybe worth checking if the agreement is enforceable. If not you could stop paying as the worst they can do if not enforceable is add defaults and since your on a DMP your file is going to be hammered anyway - https://forums.moneysavingexpert.com/discussion/2305463