Interest on a DMP?

M1KE_W00D

After 8 years of no interest and ten months payments remaining Barclaycard started charging interest on the outstanding balance. Nothing had changed and no payments have ever been missed, no reasons have been given. Do I have any redress?

DEVONLIFE_2

Hi Mike
Read about this quite a bit. There is no redress really. As I understand it creditors do not have to stop interest. You could write to them again requesting them to stop or get your DMP administers to do it for you. Best of luck DL

Tixy

Mike sometimes this does happen for no reason but sometimes it can occur as your balance reduces because you reach a point where the amount you are paying each month would now actually be more than the minimum payment for that balance (under the original T&C).
Still nothing you can do other than ask them to reconsider, but it might at least give you a reason why it could have happened after such a long time.

continualdiamond

Know how you feel, Lloydstsb suddenly started doing this, AFTER we increased our montly repayment.

Here we were being honest about our income due to OH getting a better job and we decided to sit down and work out income and expenditure, saved a bit of money with reducing car insurance and all that business, only to have them start charging interest again.

This being after 2 years in a DMP and some creditors have even refused our offer of repayment, that i do not understand, they all got an increase in what we used to pay and some refused.

I have sent Lloyds letters many of times asking to freeze it, i get no reply from them, they just are not bothered. Even sent a default letter, that i can understand in the beginning cos yes i have defaulted, but when i have stuck to my DMP for 2 years i don't understand what i have defaulted on.

I'm with payplan and all they can do is try and get it frozen but they just tell me a creditor can start charging again and that 9 times out of 10 when you near the end of finishing the DMP all interest is wiped off, whether that is true or not, don't know.