DMP & Mutual Support Thread - Part 8

soappie

I started my DMP on 4th July 2012. Halifax is my largest creditor (about 30% of the total debt on CCs). Payplan is managing my DMP for me. I don't know what they said but Halifax stopped charging interest within a month and have now, three months on, passed it on to Westcot so I guess I should be grateful of that as Westcot won't be charging interest. Mind you, they are phoning twice a day and texting - so far I've managed to avoid speaking to them! I have sent them a letter though asking them to contact me only in writing and that PP are dealing with the case!

Tigsmom

Hopelessly_Hopeful wrote: »

I agree with Ms TTFTM, solo all the way. Having the lowest DMP payment possible increases your chance of debt reduction IMHO.


I have a HSBC debt, they finally agreed to 6.5% interest but made me sign a CCA which strictly speaking is not allowed on a DMP. They sold the idea to me it's not a 'new' credit and I signed on good will before CCCS frowned upon me

HHx

Cheeky blighters! Not that I ever want credit again but if I were to advise anyone who had to get credit I would say avoid large banks and go for lots of smaller amounts rather than one biggie.

Time_to_face_the_music

tintingirl wrote: »

Virgin CC; balance £6900; payment £149 - this one is interesting as the statements have monthly interest at 0.3233%, which I have worked out is 3.95%, and yet I have a letter which says three times that they are reducing my interest to 3.90%... before I ring them, am I right? Does 0.3233% monthly = 3.95% apr?

Odd situation but you are both correct!

0.3233% monthly interest works out to be an annual rate of 3.95% when it is compounded
But it is a 3.9% annual rate when it is non-compounded.

You need to check how they have expressed it in the letter, if it's specified as non-compounded or unspecified, I think they can get away with it. However if they have specified it as compounded annual rate, your monthly rate should be 0.3193%

Time_to_face_the_music

jubilee14 wrote: »

Does anyone have positive news on HBOS re interest rates?

Mr TTFTM has a HBOS account and they rolled over and played nice quite quickly. I think they charged interest for the first month then threatened to default us, but never did, and stopped the interest completely

Ellieseleven

rdchick wrote: »

Hi guys, back again, I never got my DMP off the ground last time, I just need a bit of advice. I have changed my job to an hourly paid job rather than a fixed salary and I wondered what happens about that as each month will be different... Plus I get paid expenses for petrol as I am a mobile care worker so need around £400 just for fuel a month (crazy I know, but obviously I get that paid back) Xxx

I spend a similar amount on fuel each month RD Chick and CCCS just include it in my budget - I worried at first because my expenses for work are quite high but so far it's worked out ok (touch wood):)

jansueir

Hi

I have own dmp and, unfortunately owed approx £1,600 to Argos. offered £20 pm. They reduced the interest from 27.9% to 9.9% but only £5-6 is coming off each month- rest in interest. I wrote a letter of complaint and got a long letter back.

1. Their system generates the terms and conditions charged throughout the period of arrangement and as a result the interest will remain the sum until the arrangment expires in 2013 then they will review the situation.

(surely they can override the computer to change details and not have to wait until the one year is up - and i'm sure if I offered more, their system would soon change that)

2. They appreciate it will take an extended amount of time to pay off the balance, however the balance will decrease £5-6 pm.
(They do not subscribe to the lending standards board lending code but apply a financial difficulties policy within regulatory and voluntary (FLA) guidelines which follows closely to the stanards board lending code

3. They are aware they I felt they failed to respond within an adequate timescale to my financial situation. Following my call they had to await a letter of authority to allow them to liaise directly with Citizens Advice Bureau and once they received that they were able to proceed with the setting up of the arrangement.

(I never sent them a letter of authority to contact the CAB or, at least cannot remember doing so. I have generated all letters on laptop and keep a copy both on memory and a printout)

4. They admitted receiving a letter from me asking to freeze the interest and was noted on my account accordingly. However they were not able to assist me as the could not freeze the interest. They were unable to provide a definite answer as to why they failed to provide me with a written response at the time and asked me to accept their apologies!

5. I asked in my letter of complaint as to why they should take priority over my other debts - they failed to reply to this.

5. Under the terms of their Complaints Procedure this is their final response to the complaint and refer me to the Financial Ombudsman service.

WHERE DO I GO FROM HERE? Have a got a complaint to make to the FOS?

Has anyone else got any further with ARGOS?

Giraffeseeker

Time_to_face_the_music wrote: »

Odd situation but you are both correct!

0.3233% monthly interest works out to be an annual rate of 3.95% when it is compounded
But it is a 3.9% annual rate when it is non-compounded.

You need to check how they have expressed it in the letter, if it's specified as non-compounded or unspecified, I think they can get away with it. However if they have specified it as compounded annual rate, your monthly rate should be 0.3193%

Ah, not sure I understand the difference but I have heard of non-compounded before. Unspecified in the letter though :mad:

Thanks for clarification!

Time_to_face_the_music

tintingirl wrote: »

Ah, not sure I understand the difference but I have heard of non-compounded before. Unspecified in the letter though :mad:

Thanks for clarification!

Am not sure I understand it either!

I know the maths is correct but it's possibly too geeky even for me

Time_to_face_the_music

jansueir wrote: »

Hi

I have own dmp and, unfortunately owed approx £1,600 to Argos. offered £20 pm. They reduced the interest from 27.9% to 9.9% but only £5-6 is coming off each month- rest in interest. I wrote a letter of complaint and got a long letter back.

1. Their system generates the terms and conditions charged throughout the period of arrangement and as a result the interest will remain the sum until the arrangment expires in 2013 then they will review the situation.

(surely they can override the computer to change details and not have to wait until the one year is up - and i'm sure if I offered more, their system would soon change that)

2. They appreciate it will take an extended amount of time to pay off the balance, however the balance will decrease £5-6 pm.
(They do not subscribe to the lending standards board lending code but apply a financial difficulties policy within regulatory and voluntary (FLA) guidelines which follows closely to the stanards board lending code

3. They are aware they I felt they failed to respond within an adequate timescale to my financial situation. Following my call they had to await a letter of authority to allow them to liaise directly with Citizens Advice Bureau and once they received that they were able to proceed with the setting up of the arrangement.

(I never sent them a letter of authority to contact the CAB or, at least cannot remember doing so. I have generated all letters on laptop and keep a copy both on memory and a printout)

4. They admitted receiving a letter from me asking to freeze the interest and was noted on my account accordingly. However they were not able to assist me as the could not freeze the interest. They were unable to provide a definite answer as to why they failed to provide me with a written response at the time and asked me to accept their apologies!

5. I asked in my letter of complaint as to why they should take priority over my other debts - they failed to reply to this.

5. Under the terms of their Complaints Procedure this is their final response to the complaint and refer me to the Financial Ombudsman service.

WHERE DO I GO FROM HERE? Have a got a complaint to make to the FOS?

Has anyone else got any further with ARGOS?

I think I would take it to the FOS. There is no guarantee you will win, we have won one albeit temporarily (Lloyds TSB), lost one (M&S) and the jury is still out on a third (NatWest). You have nothig to lose by trying the FOS and although I know this is petty of me, I rather enjoy wasting the creditor's time when they have to deal with the FOS, even if we don't win

Growurown

Time_to_face_the_music wrote: »

Odd situation but you are both correct!

0.3233% monthly interest works out to be an annual rate of 3.95% when it is compounded
But it is a 3.9% annual rate when it is non-compounded.

You need to check how they have expressed it in the letter, if it's specified as non-compounded or unspecified, I think they can get away with it. However if they have specified it as compounded annual rate, your monthly rate should be 0.3193%

Oooh you are clever:D

Halifax are still charging us on one credit card and bank account overdraft. The other CC was passed onto a DCA but there wasn't much on it and the small bank overdraft has had all charges stopped. In our case the large debts are still incurring interest. At this rate our other debts will be paid off before the Halifax ones so the plan is to then throw everything at them to get rid of them once and for all.

I have purchased a slow cooker and am now eagerly awaiting a beef casserole for my tea:p:p