Sainsburys loan in default-advice needed please

Lornadoone_2

Help!!! I could really scream.....am totally peed off and stressed...

I have gone into default on my sainsburys loan (1 of 5 creditors) The debt was handed over to debt collectors months ago and I'm about to start on a DMP through the CCCS. Today i received a statement from sainsburys which shows that they are still loading interest on the loan amount.
At the rate I am now committed to pay it off it seems I never will as the payment I am giving is the same as the amount of interest they are still charging.
I thought they had stopped the interest......can someone help me understand what is going on and what I can do about it please?
Really really upset .......

fermi

Why did you think they had stopped interest?

Lornadoone_2

fermi wrote: »

Why did you think they had stopped interest?

Hi fermi thank you very much for replying. The loan first went into arrears and then I set up a token payment plan through the CCCS. Durin that time the debt was passed onto debt collectors. On 2 seperate occasions I asked for balances on the loan and the amounts outstanding only took into account the token payments I had made. There was no indication that interest had continued to be applied.
I have just received an annual statement from sainsburys and clearly the interest is being added on on a monthly basis and far exceeds the token payment I was making and also the payment I am able to make through the DMP which is in the process of starting.
Thnaks for your time. really grateful here.
LD

fermi

Well, there's no obligation on them to stop interest/charges, even though you were making token payments with the help of CCCS.

Hopefully during the process of setting up the full DMP a stop can be negotiated. Presumably CCCS will ask for that as a matter of course, but I would broach the issue with their advisors as well.

Lornadoone_2

Thanks Fermi....I'm angry (probably with myself!!!) I feel like the debt collections agency have mislead me by not taking into account the ongoing added interest had they have known or Sainsburys for not passing on the new figure to either them I presume if they plead ignorance. They certainly didnt disclose it in their figures!!!
Hey ho.......wish I could off this not-so-merry go round!!!

fermi

Who were the debt collectors?

Lornadoone_2

fermi wrote: »

Who were the debt collectors?

Blair Oliver Scott...do you know of them?

Lornadoone_2

On the 9th Feb they gave me a balance of £5159.52 however yesterday Sainsburys letter shhows my balance as £5764.59

As you can see the difference is substantial considering I first failed to pay initial full repayment less than 8 months ago!

fermi

Lornadoone wrote: »

Blair Oliver Scott...do you know of them?

Suspected as much.

They are "in house" collectors for Lloyds etc.

They are not external debt collectors, but simply part of the bank itself. Although they will frequently fib to people and try to pretend that they are not.

So if they told you that interest had been stopped, then there is no excuse for that not being the case.

Did they say in writing that it had been stopped? or was this over the phone?

If over the phone, then I'm sure they would deny all knowledge.

Lornadoone_2

In house collectors for 'Lloyds'?? Are you sure lloyds not sainsburys?

Ah! So they are simply 'being sweet' in order to get some money in?

Oh yes and it was over the phone and you are probably right in fact I asked them for a written statement/confirmation of the balance so that I could include it in the paperwork for the CCCS and my DMP but guess what they wouldnt and haven't!

Actually simply just chatting to you about it has already made me feel better. I'm not a twit but beggar me I cant stand it when companys act so underhand and manipulative or deceptive.....

Thank you fermi

Lornadoone_2

fermi I have just recontacted Blair, oliver and scott and asked them to confirm the outstanding balance. They did and it is as above -£5159.52. I again asked for a statement confirming this and they agreed this time-no fluff no waffle. They would send one to me within seven days. I asked them to confirm that this amount is the TOTAL amount outstanding and they said YES. I asked if no other amounts were outstanding and they said NO.

So now my question is about this grey area.....the original creditor sainsburys state I owe £5764.59 and their debt collectors state I owe £5159.52!!!
Whats likely to happen after the debt - £5159.52, is paid off? Am I then likely to be chased by debt collectors for the difference in the 2 balances which at this rate is going to increase over the years? Do you know of anyone else this has happened to? I can just see me 6 years down the line thinking this hhorrid debt situation has now finished and being hit by all the creditors for mmore outstanding monies owed?!

..........back to being scared again!!!