Feeling Ripped Off - catalogue charges means DMP debt has not reduced

terrilor

Hi Everyone

We have been in a DMP with Payplan plan for six years, we have paid back a very large amount of debt and now although the original amounts are all paid we have a bit left - charges and interest - and will continue the plan for about another 4 months. One of the debts was for a catalogue company, the debt was for £370. We have paid the agreed amount every month for the last 6 years and have actually paid £369. However, the company now say we still owe £349 even though they claim to not be charging interest. This is due to the fact that they want payment every 4 weeks and we have been charged a late payment fee nearly every month although we never had any control over when the payments were made. I feel so angry about this, if we had opted for IVA or bankrupcy we could have walked away from most of this debt but we chose to do the right thing (as we were in a position to do so) and now this company are acting like a seedy money lender and we have spent six years paying back precisely £20. Payplan have requested they take a smaller amount to pay the debt off but they have refused.

My question is this - should I just swallow the anger and continue paying over the 4 months of should I fight it? If I chose to fight it where do I go? Payplan dont seem to be very strong in this case...

what would you do?

fermi

Moved to the main DFW board.

eyeopener2

Are the rest of your debts through Payplan nearly paid off?

terrilor

Yes most of them are, just the last bit - additions - to be paid off.

eyeopener2

Couple of options then.

1. Bit the bullet, pay the last £340ish to them and just let go of the past. And move on, knowing you've paid your dues.

2. Complain to Additions about your treatment, demanding that all charges are refunded. Write to Additons complaints, find out the address of the managing director/CEO and copy them in.

If this fails complain to the Financial Ombudsman.

Personally i'd go for two, as its only the cost of a couple of letters and the time taken to write them. Doing this helps others who are also in the same boat.

For anybody else reading this. You need to constantly check your balances on a DMP, request statements from companys (even though you should by law get them) so you know exactly where you stand whith each creditor.

Go get 'em.

E2

terrilor

I was considering the financial ombudsmen option but looking at other forums it seems they take ages to get round to helping. Like option one as I am ready to move on!! but think it is outrageous that they can rip people off like this.

fermi

Additions are Littlewoods I think.

Worth writing...

http://forums.moneysavingexpert.com/showpost.php?p=32701729&postcount=11

chanz4

Additions rebranded littlewoods

vax2002

The late payment charges could be fought on the basis that they constitute a penalty.
I would pay what is owed in debt and let them whistle for the rest, if they claim not to be charging interest they will have great difficulty in a court if the fees were defended as a penalty.

eyeopener2

Get writing to Littlewoods.

One recorded delivery letter could repay you £340.

shebangs

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