Payplan & debt collection charges

creditcritter

i have been on a DMP with payplan for five years now , i checked the Justabank site yesterday to find out how my plan was doing i was shocked to find that my debts had hardly decreased at all in fact 80-90% of all my payments over the five year period had gone on debt collection charges , my debt problems will never be solved at this rate any advice anyone .

nottoolate

not all collection charges are legally valid. especially if there is no contractual provision for them or they are disproportionately large considering the size of the debt.

might be worth asking payplan if they can challenge any of them?

Jinx

Payplan have such a good reputation Im very surprised to hear this....

After speaking with them to double check the situation if you are not happy still, you could do your own DMP. Lots of us here on the forum have and do; certainly I havent paid interest or charges in years and am nearly debt free after 6 years. Worth thinking about and of course you can get lots of support here if you decide to do it on your own.

Good luck

nottoolate

i think they meant charges applied to the accounts by the creditors or debt collectors. not payplan.

they may not be legal. especially those from debt collecotrs.

Tixy

I guess by charges you mean charges and interest is still being applied to your accounts by your creditors.

Creditors cannot be forced to freeze interest but payplan would always write to your creditors to ask that they do stop charges & interest. If they refuse after a few months on a DMP then its often worth contacting your creditors yourself to ask them to reconisder.

First you need to work out which creditors are still charging you interest & late charges etc. Your creditors should be sending you at least annual statements if not more frequent. Then perhaps have a word with Payplan to see if they can request again on your behalf that these are frozen.

Its not unusual for 1 or 2 creditors to continue to charge interest - often right up to the point a debt is sold to a DCA. But it seems a bit unusual if most are still charging after 5years.

Sometimes creditors continue to charge int & fees if your payments are almost at the original minimum payment level so if your payments are quite high this might apply in your case.

Once you know who are still charging and what fees they are putting on your accounts then its might be worth writing a letter yourself to ask them to reconisder freezing interest (national debtline has a good template letter for this).

creditcritter

hope to here back from Payplan during the week with an explanation , thanks for all the input , meanwhile after some further research some off the greedy ones that have charged the most are creditors that have not yet supplied valid CCA`S although they have cashed my postal orders & accepted my requests , they also know i am disputing these alleged debts & that my requests are valid until satisfied own goal or what.

eyeopener2

Hi

Had you not noticed this over the past five years? The fact that your debts haven't decreased significantly should have rung alarm bells before now.

I'd check with Payplan here, something doesn't seem quite right.

dlb

Im with payplan also and use the justabank site monthly to keep a check on things eg payments recieved cleared ect.
I know on the ballances that Payplan dont update them regularly, i know this because i questioned a ballance with one of my creditors as it was different to statment recived..payplan reduce the ballance by what they have paid to account but dont add any interest creditor maybe charging as they would have to have monthly statments for the whole duration of the dmp.

Payplan have told me not to worry that one of my balllances is about £550 out as now towards the end of the plan they will contact all creditors for uptodate ballance and negosiate full and finals and interest being removed if this is the case.

creditcritter

i used to check my Justabank all the time it was doing ok at one time that is what shocked me , they are meant to looking after the account on my behalf the account manager is not doing his job properly as far as i am concerned.

creditcritter

payplan got in touch on Monday , bottomline some good advice but i need to tackle the creditors myself .

gartshore

ok i have kept my eye off the ball for a while now but i am back fighting now & will keep going in a posotive manner ,as i said earlier it seems i have paid overall 80/90% charges on my payment whatever the breakdown , on this site i have been advised that any charges should be in line with origonal terms & conditions ? many origonal terms & conditions are illegal & collectable what makes a DCA any different ? what if the DCA dose not have those origonal terms & conditions ? what if a DCA dose not have an enforcable CCA in the first place and he has been collecting & inflicting such high charges , i need all the advice i can get as i wish to fight for my rights on this matter.