Lloyds won't freeze interest - has the FOS helped you?

Pink-Angel

I've been on a DMP for just over a year with CCCS. It's going well and my creditors have frozen interest, apart from Lloyds. This is causing me huge problems, as what I have been paying towards my loan is less than the charges Lloyds are adding. I do appreciate that creditiors don't have to freeze or reduce interest, it's just that I can't see an end to it.

It's got to the point where I've been feeling very low, not sleeping, and even have considered an IVA or bankrupcy as I can't see how I'm ever going to get out of debt if they keep adding interest and charges. Letters to them have not made any difference.

Today I decided I shouldn't have to consider an IVA or bankruptcy, as it's Lloyds that's the problem, not the DMP itself. If they froze or even reduced the interest it would help. As my most recent letter was ignored, I have spoken to someone at the FOS who is going to write to Lloyds. Apparently Lloyds will have 8 weeks to write to me with their decision, and if I'm not satisified I can file a complaint with the FOS.

I'm feeling better as I now feel there might be some hope. I know my debts are my fault, I take responsibility for that, it would just be nice to not end up with more debt at the end of a year than I started with due to interest and charges.

I just wondered if others have used the FOS, whether the inital letter helped with getting interest frozen, or if a complaint achieved this?

fermi

Some people have had good results via the FOS.

One example.

https://forums.moneysavingexpert.com/discussion/comment/51380721#Comment_51380721

Pink-Angel

Thank you Fermi, that's good to know!

eddyboy121

hi pink angel

Although i have no help for you i too am in exactly the same situation. I've been on a dmp for a few months now and also lloyds tsb wont stop my interest payments. The interest payment is the same as what im paying them. i've sent 2 letters asking for them to stop but to no avail. I know how you feel, i just cant see an end to it. I too may take the FOS route. I hope it works out ok for you. Good luck

mercbends

Ditto to your situation and health. Ive been to my gp who's helping. Lloyds jumped my interest only payments from £176 to£870 without warning. Keep writing to them, if you can rearrange payments they might listen. Do a budget showing what you have left after essentials and living (they dont reply to my proposals either). I think they're inundated at the moment.FSO is a good idea. Keep plugging away. Regards mercbends

Pink-Angel

I'm sorry you're both in the same boat. Lloyds are a joke to say the least.

I would recommed speaking to the FOS if things don't change. Write to Lloyds formally threatening them first. They ignored me - or so i thought. Yesterday I received a strange (obviously template) letter which implied my account is being passed to a debt recovery agency. Not sure what this means? Probably a default, but the reality is I've already defaulted with one creditor and think my credit rating is not something to worry about right now. If it means they freeze interest then all well and good.

Good luck.

Gimpsdad

You have found out the hard way the major drawback to DMP's, i.e. you cannot force people to play ball with you. You mention that you are considering IVA or BR. Is there any reason why you are not on either solution already? Assets to protect perhaps?

As a general rule, where there is a choice between IVA and DMP then IVA wins 99% of the time as you get guarantees that a DMP, whether free or not, cannot give you. It is also true that, again generally, a BR works out cheaper in total than an IVA, especially where there are no assets. Whatever route you choose, you need to fight for your own best interests as it seems that no one else will as it stands.

NewStart09

Have you tried your local CAB, my friend had the same problem and when the CAB got involved they agreed to freeze the interest for one year, and lower her monthly payments.

Just a thought -


NewStart09

Bosniavet96

Lloyds TSB - I might have known!
When I first started to get myself sorted (originally using the OFT on the Isle of Man, although I am now back in the Uk & have a DMP with CCCS), I had to deal with these people, & their little games would be amusing if things weren't so serious.
I, & those helping me, received letters purporting to be from the same individual but from 2 different offices, one in Brighton & the other in Andover. Additionally letters were received by us stating that they had accepted my proposals & would write to confirm the details - they never did.
Eventually, I telephoned them, was lied to by the call centre employees over their location (I was assured they were in Brighton, but when I asked to be put through to the person who wrote to me, one of their colleagues, or the central switchboard, they admitted they had never heard of the person & they were in India!), given alternative numbers to call, including one which wasn't even being used by Lloyds TSB (although the recorded message did offer to sell it to me for my non-geographic call centre) & finally told that they were awaiting a reply from me, despite the fact I had no letter to reply to!
Eventually, I firstly had the interest suspended, then the balance was transferred to a collection agency (APEX), but not before the Isle of Man OFT & CAB/RBL advisors had separately threatened formal action through the FOS.
I am told that Lloyds TSB are notorious for failing to answer correspondence & are regularly reported to the FOS by numerous organisations. Given that the taxpayer had to bail them out, you would have thought they'd be more accomodating to their debtors, maybe even considering writing off some of the outstanding debt to achieve closure.
Isn't it strange that banks etc will write off up to 70% of money owed by the Greek government, but won't even contemplate suspending or reducing the interest on personal debts owed by individuals?

fermi

Just saw that you posted this on another thread.

Lloyds have frozen interest and refunded charges

Excellent news.

Pink-Angel

I wanted to give an update to say that contacting the FOS has helped me to get the interest/charges frozen on my Lloyds accounts.

I'm on a DMP and appreciate that creditiors don't have to freeze interest. A DMP company can't make them. For me, the interest/charges with Lloyds (my biggest creditior) applied meant that one year after starting the DMP my debt situation was no better, it was worse.

I had written several times to Lloyds to request freezing payments, to no avail. The last time I said I would contact the FOS, Still no response.

I then decided to ring the FOS, who were very helpful. They wrote to Lloyds, and suddenly things started moving. The person who contcted me was very pleasant and helpful and I have a direct dial number if I experience any other problems.

They refunded over £1000 in interest/charges from my loan. Interest/charges have now been stopped on my loan, CC and overdraft. :T

It does mean I've been issued with defaults, but I knew this would happen and it has already happened from other creditors. My accounts are being passed to their debt collection dept. But to be honest if this means the interest has been stopped, that's fine by me. I just want to pay my debts off.

It also means I don't need to go down the IVA route as I can pay my debts off quicker now the money will go to reducing the balance and not swallowed up by interest.

I wanted to share my experience in case it helps anyone else. I know how disheartening it is when on a DMP and so much is going to interest/charges. Do consider calling the FOS and see if they can help you, especially if the charges are making the situation worse. It's important to be pro-active, you can't rely on your DMP company getting interest stopped. It really is worth the hassle involved. I've still got a long way to go to be debt free but things are so much better for me now, thanks to FOS.

Good luck everyone