Advice needed re complaint over interest added

bluemonday3

Hi

Could I ask for people's opinion please?
I have been in a DMP with CCCS since Sept 09.
I have been complaining to Creation Financial over interest added since last year and had no response, I finally complained to financial ombudsman as they did not acknowledge any of my complaints.
FO said I needed to give them opportunity to address the complaint.
They asked Creation to look at my complaint.
I received a letter from Creation offering the following;
to refund 50% of the interest added in my case £395.47.
The current arrangement means that there is interest charged for 12 months @ 15%.
They are unable to offer me 0% interest.
I am gutted that in the time spent paying back this debt I have only managed to pay back £111, which if they had withheld interest I would have more than halved.
I know they do not have to withhold interest as they have delighted in telling me but It's soul destroying that I have only cleared so little.
I have to let them know if I accept this. I am being unrealistic to think I may gain anything better by persuing the complaint?
Sorry this is long winded.

sistafromanothermista

As you 've said they don't have to stop the interest so i don't think there's any point in pursuing in. put all your efforts into raising cash to clear it.

bluemonday3

thanks it's just soul destroying

sistafromanothermista

bluemonday3 wrote: »

thanks it's just soul destroying

I know, that's debt for you though. Keep your chin up and just work as hard as you can to pay it off. :)

Barbeduk

That's utter pants sista. Good luck clearing it. Perhaps if you write to accept their terms you could put itching powder on the letter!

Time_to_face_the_music

bluemonday3 wrote: »

Hi

Could I ask for people's opinion please?
I have been in a DMP with CCCS since Sept 09.
I have been complaining to Creation Financial over interest added since last year and had no response, I finally complained to financial ombudsman as they did not acknowledge any of my complaints.
FO said I needed to give them opportunity to address the complaint.
They asked Creation to look at my complaint.
I received a letter from Creation offering the following;
to refund 50% of the interest added in my case £395.47.
The current arrangement means that there is interest charged for 12 months @ 15%.
They are unable to offer me 0% interest.
I am gutted that in the time spent paying back this debt I have only managed to pay back £111, which if they had withheld interest I would have more than halved.
I know they do not have to withhold interest as they have delighted in telling me but It's soul destroying that I have only cleared so little.
I have to let them know if I accept this. I am being unrealistic to think I may gain anything better by persuing the complaint?
Sorry this is long winded.

Don't let it drop, go back to the FOS. They have recently asked Lloyds TSB to stop the interest on one of our debts which they have plus refunded us the last 2 months interest payments and have now agreed to stop interest for a year then reconsider it. But the FOS told us if Lloyds did not play ball to go back to the FOS and they would pursue it.

You have to leave 8 weeks between the FOS's original letter to the lender and your next action. If that has already passed, phone the FOS tomorrow. If not, mark the date on your calendar then phone them the next day.

Check out this thread for more support

https://forums.moneysavingexpert.com/discussion/3843079

Good luck and fight it all the way

bluemonday3

Thank you for this advice, just thought the FOS would frown on me for not accepting what may appear a reasonable offer. The letter from Creation only came last week.

Time_to_face_the_music

bluemonday3 wrote: »

Thank you for this advice, just thought the FOS would frown on me for not accepting what may appear a reasonable offer. The letter from Creation only came last week.

It's not a reasonable offer, they are causing you further financial hardship by extending the life of your debt.

The 8 weeks goes from when the FOS wrote to the creditor, do you know what date this was? They should have written to you at the same time to tell you they were contacting Creation on your behalf.

We have found the FOS to be incredibly helpful so give them a call and explain the full circumstances, particularly "I am gutted that in the time spent paying back this debt I have only managed to pay back £111, which if they had withheld interest I would have more than halved."

Good luck

bluemonday3

Again thank you so much. the date of letter from FOS is 30/4/12. Do you I have to get back to Creation and tell them I do not accept this or do I have to go straight to FOS. I am concerned as they keep pointing out that they do not have to withhold interest.

Time_to_face_the_music

Go straight back to the FOS, they may ask you to send them a copy of Creation's letter.

You are correct they do not have to stop interest but they are not treating your fairly and the FOS can consider the case and has powers to deal with it if they decide in your favour.

What do you have to lose? 5 minutes on a phonecall?

What do you have to gain? Everything!

chanz4

50% could be seen as fair though, way to look at it is a dmp fair works boths ways