HELP PLEASE - How to stop interest with Sygma/ Creation Finance

wolves062347

Hiya I have been on a DMP with CCCS since September 2009. (Total debts still £15000) however I am only just getting my head out from been buried under the sand if you know what I mean!

My interest with HFC and Natwest has stopped been charged but Sygma/Creation are a nightmare.

i was late doing my annual review and have suffered over £200 in charges for May 2011, even though my circumstances are the same (Well except for food, fuel and gas etc etc going up!)
Furthermore it has just struck me that my 7 year DMP will end up being 44 years if they continue to charge the same.

CCCS have advised for me to write to them again, see below

I am writing to complain to you with regards to a number of issues with my above account particularly concerning the extremely unfair interest and charges you apply.

You have recently written back to my letter dated 18th June 2011 and I have quoted your reference above. However I still feel you have not resolved this issue in full and you have not understood my letter properly, so I have outlined again my main complaints;

1) I have paid you £1310.81 since September 2009 and yet my debt with you has actually INCREASED considerably.

2) On your statement dated 7th June 2011 you have charged me £209.70 in a single month against my usual payment of £72.31.

3) I still feel your monthly interest of £57.44 against my payment of £72.31 is hindering my ability to clear the debt.

4) Every other company on my debt management plan has frozen interest to help assist me to pay the debt off. Please could you do the same for me?

5) I genuinely believe that your interests and charges are extremely unfair and as a consequence are clearly hindering my ability to pay this debt off

I would really appreciate a clearer response to the above.

Continued on page 2




I understand and that you must send a written acknowledgement of my complaint within 5 business days of its receipt. If you are unable to resolve my complaint within 4 weeks you must send a holding response, explaining the reasons why and indicating when you will make further contact.

If you fail to resolve my complaint within 8 weeks, or if matters are not settled to my satisfaction, I will have no alternative but to escalate my complaint to the Financial Ombudsman Service.

Obviously, on my part I will continue to make my monthly payments from CCCS.

I look forward to your reply.


Does anyone out there think i could improve on this letter as Ive been up working on it since 530am and that really isnt healthy??!!!

The only other way I can think is to go down the route of an IVA?!

Thanks for reading this and good luck to you all, especially when it comes to the Saturday morning turning over and going back to sleep bit, me missus is not impressed!!

bottleofred

Unfortunately some companies continue to charge interest and therefore add further punishment/misery. They are under no legal obligation to stop, although if you stopped paying them completely, the debt would eventually be sold on and the interest etc then stops.

wolves062347

Its almost getting to that point, what with the way the general cost of living has shot up.....and yet I've still maintened my payments.

I guess if this letter doesnt help me, then I'll have to do another review based on British Gas and general food going up and take it from there.

National Debt, wondererd why I'm not on an IVA, whilst CCCS really dont seem keen which has confused me even more.

Trouble is my wife is going back to uni in September, so I cant really move on until i know what shes got to add to the pot.

So the letter seems the best route for now? Thanks

dancingfairy

Head it up with Complaint in bold/underlined so they at least realise it is a complaint.
If you still don't get anywhere then you can take it to the ombudsman which will cost them time and effort (sygma/creation) - they are still under no obligation to stop interest and charges and I don't know what the Ombudsman will rule but it's worth a shot. You can only go to the ombudsman when you have been through sygma's complaints system though.
How much are you paying compared to what the minimum payment should be each month?
It seems like you are inthat grey area between a longish dmp and an IVA. I presume since your circumstance are likely to change that that is why you are on a dmp as it is more flexible with regards to chancges of circumstances whereas in an IVA you are more bound to make sure the creditors get a certain return. Also an IVA is a form of insolvency so may affect your career etc and it would also dependon whether you had a house or other assets to protect.
Best of Luck
df

wolves062347

Cant believe i've found a thread i started so long ago!

Anyway went to ombusdman and after initially siding with the bank, they then offered me 2 months of no credit and 3 months refund of the £57 interest. I agreed but expressed my concern that they would try and claw this back once this period had stopped...................

.....Guess what tonight I opened my new statement and they have charge me £70 interest against my payment of £72.

I am furious and after speaking to them, was simply told had entered a new interest threshold !(my debt is still £7390) and their DMP agreement is only to halt the debt and not to free me of it. They advised me to contact friends and family to raise the setttlement!

Obviosusly I will send this straight back to Financial Ombusdman by email. But I am now seriously considering bankruptcy (for the 2nd time, initially in 2001) as i have maintened payments from 2009 with the debt still in the £7k area after paying 72 EVERY AMONTH CONSISTENTLY.

I am extrenmely nervous and do not want my wife to suffer any implications of bankruptcy. Plus I now have a 5 month old baby to add to my monthly budget.

Anyway rant over, typical friday night/saturday morning letter ploy when you cant actually deal with anyone.

bluemonday3

I am in a similar situation and I complained to Creation, they still offer to refund me the interest I had paid but refused to withhold adding further interest.
I pursued this through the FOS and they had to refund the interest plus freeze interest. They have done this now for about a year but I am expecting them to add again as my monthly payment via CCCS is nearing the contractual payment.
Take it further..

Trajal

To be honest if your credit record is sufficiently damaged I would simply stop paying them other than £1 a month.

Let it default and be sold on and whoever picks up the debt will freeze the interest.

At the moment, as you have been continually paying them interest they have absolutely no incentive to help you out.

happy_bunny_2

Don't pay them anything. Let them sell it and then you can repay as it will all go towards the debt. It might go up by the interest for a few months but who cares in this situation.

When did you take out the debt? Pre April 2007 worth sending a CCA request, useful if they don't have one or its junk when negotiating with DCAs.

wolves062347

Thanks for the feedback I really appreciate it, the debt is started in 2005 so will send the CCA request.

Question tho -

My debt is be being paid via CCCS and the plan is working as my Natwest and HFC debts are now just below 2k. How can I not pay Creation when my money is dispersed by CCCS?

happy_bunny_2

Hmm, yes, hadn't thought about that.

Maybe talk CCCS about how unreasonable they are being and see what they suggest. You can always ask if not paying them is an option. No expert on DMPs...Maybe also mention that you are thinking of bankruptcy due to them as you mentioned in an earlier post.

At least send them the CCA request, and see what comes back.

wolves062347

I dont know much about CCA request, read a bit this morning. A bit worried that because I've been paying every month for so long that I 'Have acknowledged the debt'

Theres also a thread on the all about debt board, which talks about the incompetenct of FOS! I am not holding my breath for much help from them, but one thing I am not doing is letting this one go.

I was also thinking of ringing and seeing if I could deal direct with Natwest and HFS, allowing me to disperse the monies?

ITS A MINEFIELD EH!!