Interest still being applied whilst on DMP

venus2129_2

Hi Everyone,

I have been on my DMP since April this year and it is the best thing I have ever done with regards to my debt as I no longer have continous phone calls and letters from creditors.

However, whilst some of my creditors have stopped interest a couple haven't. For example my accessory card have accepted a £5 payment but charge £4.46 interest so I am only clearing 54p a month!!!!

Has anyone been in this situation? Should I write to them asking them to stop the interest or am I wasting my time?

Any advice would be gratefully receieved.

Thank you
Ruth

Pott5y

Ruth,

It is always worth pursuing the creditors to try and get them to stop charges and interest while on a DMP. There is a letter on the NDL website here:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Sample letters drop down - when a creditor refuses to stop interest charges.

Unfortunately as the DMP is completely voluntary the creditors can still charge interst if they feel like though most (certainly from my experience) do stop. It may take 6 months or so for some of the more stubborn ones, but just keep trying.

Good luck

colly2218

Venus, I am having the same problem with my OH halifax card.
We are on a DMP, and pay £135 per month to them through CCCS, they then put on £60 interest and a £12 late payment charge!
Drives me mad. How do they expect us to ever pay the debt off at this rate?
Ruth, thanks for the link. I will print a letter off and send it to them. Have tried over the phone before to get them to stop charges etc, but not by letter. Will give it a go.
Good luck to you Venus with yours.

Sunnylooloo

Colly although I think Halifax are charging me some interest (a reduced rate) they do not add on that late payment fee. I am dealing with them directly and not through a DMP company