Advice needed on payplan DMP

phoenix5

Hi, I wondered if anyone could offer any advice regarding Payplan - I set up a DMP in February and it seems to have taken so long to get things underway, only now am I making regular payments and the creditors are actually getting paid.
My worry is that I see on one of my overdrafts, the payment is going in at £7.11 from Payplan, but the bank are still charging a fee of £10 per month for the overdraft - to me this makes no sense as I am still effectively adding to my debt. Payplan tell me they have no control over interest and charges etc, but I can't see the benefit in the plan if I am still addding to my debt each month.
Can anyone suggest a solution to this? I have thought of either going to my creditors direct or changing from payplan to another company but don't know if this is realistic.
Would be most grateful for any help. Lee x

Tixy

Hi Lee

Which bank is it? you might find that after a couple of months or regular DMP payments that they will stop the charges. If they don't then sometimes writing to them direct and asking them to reconsider helps - there is a template on national debtline website you can use as a starting point.

I wouldn't stop your DMP with payplan or go to another DMP provider as this won't affect whether the creditor will agree to freeze charges.

Try sending the letter first and see if you have any luck - http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

phoenix5

Hi Tixy
Many thanks for your quick response and advice - the bank i am referring to is the alliance and leceister and i also have debt with barclaycard, mbna, direct line, tesco and natwest - i am unsure if the others are still charging interest..i somehow sort of assumed when i took out a dmp that the interest would be stopped.
The letter looks very useful, so as you say i will leave it for a bit then approach them and see if they will reconsider.
Many thanks again Lee x

Tixy

Its never guaranteed that interest will be frozen but most people find that the majority of their creditors will - that said it often takes a couple of months on the DMP before they will do this. Or some will only do it after they have issued the default notice (typically 3months ish into your DMP).