DMP & Mutual Support Thread - Part 8

Growurown

D'oh she beat me to it

stupid-fool

Time_to_face_the_music wrote: »

Lloyds TSB have been one of our biggest problems but other people have had no issues with them. I hope you are one of the "lucky ones".

Thank you so much - I hope the same too. It's amazing how Lloyds Card Services just froze, yet the others play a different game.

I just called the Collections Dept about the loan payment letter as they expect payment 1st Dec instead of the StepChange 25th. I asked about freezing interest and was told that it is Loan Services I need to ask, not collections. This seems strange, who have you been dealing with?

Time_to_face_the_music

Growurown wrote: »

D'oh she beat me to it

Haha! :rotfl:

I changed it a bit this time from a later letter we sent to M&S. Didn't do us any good though

Time_to_face_the_music

stupid-fool wrote: »

Thank you so much - I hope the same too. It's amazing how Lloyds Card Services just froze, yet the others play a different game.

I just called the Collections Dept about the loan payment letter as they expect payment 1st Dec instead of the StepChange 25th. I asked about freezing interest and was told that it is Loan Services I need to ask, not collections. This seems strange, who have you been dealing with?

I try not to deal with Lloyds TSB at all. Their collections department must be eligible for the worst bank department award ever!

Actually I think I prefer my letter that GUO quoted, maybe use that or your personalised mish mash of the two

Growurown

Time_to_face_the_music wrote: »

Haha! :rotfl:

I changed it a bit this time from a later letter we sent to M&S. Didn't do us any good though

You can only try I suppose. There are no guarantees that interest will be stopped. Halifax are still charging us. They have been leaving messages so called them today and they want an up to date SOA and if they don't get it by the 11th of next month they will add another charge. I keep thinking of their advert where they are all singing 'I'll be there' - yes with a ruddy big bill.

Hopelessly_Hopeful

stupid-fool wrote: »

Thank you so much - I hope the same too. It's amazing how Lloyds Card Services just froze, yet the others play a different game.

I just called the Collections Dept about the loan payment letter as they expect payment 1st Dec instead of the StepChange 25th. I asked about freezing interest and was told that it is Loan Services I need to ask, not collections. This seems strange, who have you been dealing with?

Hi SF


Can I just check that you know that loans and credit cards are treated differently? Loans front load the interest. CCs interest (£ monetary amount -not APR) will change each month as the balance reduces. CCCS work on the contractual amount AT THE START OF THE DMP for both so it will feel like they (loans) get more payment as a ratio to the debt than with your CC balances. For example my DMP payment for my outstanding loan balance at the start of my DMP was one of my lowest balance. The DMP payment was set at a 10th of the total balance each month. Was cleared in 10 months then that amount redistributed to the CCs

Thought I would mention as newbies often don't realise this.

Hope that helps

HHx

DaveK1971

HH,

Any idea how payday loans work? I was expecting large amounts of my DMP to go towards them but the opposite seems to be the case.

Cheers.

Hopelessly_Hopeful

DaveK1971 wrote: »

HH,

Any idea how payday loans work? I was expecting large amounts of my DMP to go towards them but the opposite seems to be the case.

Cheers.

Hi Dave

I was going to say I'm afraid I don't have any experience with Payday loans and then decided it should probably say I am grateful for not having the experience

The way they make the money is because of the huge APR and by saying they are intended to be short term, repaying it back over much longer is what gives the huge costs. My understanding is the interest charges work more like with CC than regular loans.

The calculation on CCCS website it is individual debt x surplus divided by total owed = pro rata amount is offered to each based on the starting contractual amount.

Have you considered posting the question on the ask a CCCS advisor thread?

Sorry I can't be of more help.

HHx

stupid-fool

Hopelessly_Hopeful wrote: »

Hi SF


Can I just check that you know that loans and credit cards are treated differently? Loans front load the interest. CCs interest (£ monetary amount -not APR) will change each month as the balance reduces. CCCS work on the contractual amount AT THE START OF THE DMP for both so it will feel like they (loans) get more payment as a ratio to the debt than with your CC balances. For example my DMP payment for my outstanding loan balance at the start of my DMP was one of my lowest balance. The DMP payment was set at a 10th of the total balance each month. Was cleared in 10 months then that amount redistributed to the CCs

Thought I would mention as newbies often don't realise this.

Hope that helps

HHx

Thanks :T I hadn't given this any thought, but it makes perfect sense now

DaveK1971

No worries, cheers. I'll ring Step Change a bit later in the week once I've heard from a few more creditors. Seems odd the way some of the DMP payments have been allocated as Step Change are giving £200 a month against a standard bank loan for which the contractual payment was £140. Presume there's a good reason just not what I'd expected.