DMP Balance not reducing due to interest and fees

paddyisis

Hi, I have two questions please.

We have been on a DMP with CCCS for 18 months now and have paid around £9,000 but our balance has only been reduced by around £5,000 due to charges and interest, Barclaycard in particular are charging £126 of interest every month on a balance of just over £6,000. I have written to all of the companies who are still charging interest and asked them to stop, can you tell me whether I have the right to ask for interest that has been charged in the last 18 months to be repaid to the account ?

My other question is that we have a Northern Rock Together Mortgage with an unsecured loan of £24,000, CCCS have just advised us that this needs to be added to the DMP. I'm concerned because this is going to almost double our total owed and therefore take so much longer to clear our DMP. Also, I wonder what would happen if we sold our house ? we would have around £20,000 equity, would this be split amongst all companies on the DMP or would it go directly to Northern Rock to clear the unsecured loan ?

Thanks for your help.

Happytogetdebtfree

I dont know re selling the house and who the money would go to.. not all companies stop intrest so i dont know if you can claim it back as such hopefully someone will be along to advise you

mr.ton

Make an official complaint to the financial ombudsman service about these greedy blood sucking leeches.

3Dogs

mr.ton wrote: »

Make an official complaint to the financial ombudsman service about these greedy blood sucking leeches.

Don't understand what you are advising the OP to complain about. No-one can force a lender to stop adding interest, so you would not have any grounds for complant.

To OP, sorry, I can't advise you on the mortgage side of things, but can confrm that lenders do not have to stop interest, though most do as a goodwill gesture, as they put it.