creditor wont freeze the interest?

rainbowfairydust

Hi all

Bit of background first..I was on a dmp with CCCS, and last month decided to go on a self managed plan. I have been recently receiving tax credits but these have been stopped this year (as just over the threshold).. I did look into a DRO but am not eligible for this which is fine, i will re-adjust my budget & carry on making payments..

Anyway as i decided to self manage my DMP i requested that my creditors send me statements showing how much i still owed, all but one have frozen the interest and upon seeing the statement i nearly had a heart attack.. they have added on an extra £500;s worth of charges which has brought the balance to more than what i originally loaned.

so my question is do i have to pay the extra charges? The debt will never be cleared off otherwise. Can anyone help please?

thefoolonthehill

how much longer do you have on your DMP. They don't have to freeze the interest but generally they do as they realise the debt will not be paid off.

who is the creditor? have you approached them againand asked them to freeze interest and charges?

winner12

Hi
Just wanted to mention a DMP is normally for people who may in the future be able to pay off their debts in which case they will default you thus stopping interest and charges and pass you to a DCA who may offer a F&F which would be less than you owe normally anything from 30% upwards
You can also still keep requesting they stop interest and charges put it all in writing though

rainbowfairydust

thefoolonthehill wrote: »

how much longer do you have on your DMP. They don't have to freeze the interest but generally they do as they realise the debt will not be paid off.

who is the creditor? have you approached them againand asked them to freeze interest and charges?

Prob another couple of years left on DMP, yes i have approached them in the past and asked them to freeze the interest but they have ignored my request obviously. I really don't want to pay the extra £500 charges either. I am going to send them another letter today and request again that they freeze the interest, and in the meantime carry on making the payment i can afford.

Not sure what steps to take if they still refuse though?? the creditor concerned is real personal finance (they are a sister company of provident)