Debt management query

Madison

I've been in a debt management arrangement with payplan since 2003 when all my creditors froze the interest and agreed a proportional monthyl repayment. Each year I've been able to increase this.

One of the debts is an overdraft on a current account I no longer use. The interest was frozen until this year, when the bank contacted me directly and agreed to extend the overdraft a further six months. However I've started receiving statements from them and they're charging interest which is 75% of what my monthly repayments are. Where do I stand on this? I'm considering withdrawing payments and letting it come to a court ruling.

Please advise.

cathybird

I am not qualified to answer this I'm afraid, never having dealt with payplan etc. Any one of you expert DFWs want to have a go? this thread was disappearing down the queue without anyone seemingly having seen it - can't have that, this chap needs help

Xbigman

This is a problem a fair few people have encountered. The thing is that you can now afford to pay the interest and something off the debt, so there is no reason they should stop the interest, nor is there a legal requirement for them to stop the interest.
Unfortunately you just have to tough it out and pay up. Its annoying but if its only one creditor its not so bad.
Whatever you do, don't stop paying. If you do they will keep adding interest and may start putting other charges on as well. Making a debt bigger like that is never a good move.

Sorry it not what you wanted to hear.
Regards


X

Xbigman

Although in the meantime you can write and request they freeze the interest again, they probably won't but it can't hurt.
Regards




X

Jolinar

I'm going through this at the minute on my old OD balance but at the same time they are pressuring me to take out a loan to cover the OD at a much lower interest rate than they are currently piling onto the amount owing.

Hang in there, I keep writing to them as advised by CCCS but I just get the form letters back. The really annoying thing about it is I wasn't repaying them a penny before my DMP with CCCS and they didn't give a monkeys, now I'm paying it back and they hassle me like crazy lol. OH also has an OD and loan with the same bank for a lot more money and is paying back a lot less than me in a DMP and they leave him well alone, lucky so and so.