DLC Intransigence

365pbm

Hello,

Sometime ago I managed to incur considerable financial difficulties through various credit card debts, overdrafts and bank loans. This eventually resulted in a default on my part amounting to just over £13,000 and a collapse of my credit rating. In order to finally address this problem I approached PayPlan for advice. They were able to arrange a debt management plan and contact all of my creditors and freeze interest on the money owed. For the past six years I have been paying PayPlan a monthly payment which they have used to redistribute to my creditors until the final settlement.

I was pleased to find earlier this year that (assuming creditors did not impose any last-minute charges or interest) I would pay my final instalment on April 1st and all accounts would be settled. In April I suddenly found that the estimated completion date was then projected to December 2012. I contacted PayPlan and they explained that creditors informed them when a debt had been paid in full and the monthly payments were then redistributed among the remaining creditors at a higher monthly rate. However, in one instance a creditor (DLC) had failed to do so and PayPlan had not noticed with the result that this creditor had actually been overpaid by £1057.00. PayPlan has made various representations on my behalf and has been told that a cheque was sent to them on 10.5.12 for the entire amount. When this cheque failed to materialise after one month, PayPlan asked that the money be refunded immediately either directly to me or to PayPlan in order to pay in full the remaining creditors. DLC has responded by reiterating that they have already sent the cheque and that if it needs to be reissued or cancelled, PayPlan must request this in writing.

For my part, I have contacted DLC last week via email and in writing (recorded delivery) to make a formal complaint and request a refund, payable to PayPlan but have received no response or even the promised confirmation within one working day that DLC have at least registered my complaint. I have been advised by the Financial Ombudsman Service that I must allow eight weeks for DLC's final response before they can become involved.

My question is: Is there any further action I can take to speed up the resolution of this matter? It seems ironic that after six years of steady repayments and managed debt control, I have nearly fallen at the last hurdle. I cancelled the PayPlan standing order in April but continue to make direct monthly payments to them so that the other creditors are satisfied and do not take default action against me.

sistafromanothermista

How annoying. No advice i'm afraid i just wanted to say i sympathise.

365pbm

Thank you Sista. I find DLC's conduct in this matter unprofessional at the very least. The fact is, they have been collecting payments that they are not entitled to for some time and it is only recently that this has been discovered. I wonder if they have also been making some interest on this money?

sistafromanothermista

More than likely :mad:

davek1

and you should ask them for interest on the ovepayment as well, because if you took them to the small claims court (which you could) you could ask for interest and indeed reasonable costs incurred in making the claim etc, as well as the actual cost of the claim.

Write to them and tell them if you do not receive a response with the money within 14 days you will be issuing proceedings in the small claims court to make full recovery plus interest and costs.

Nothing like turning the tables

365pbm

Thanks davek1 , I never thought of that.

However, I am pleased to say that this morning I received a cheque from them for £1,152.72. I deposited it immediately in my account (NatWest - I haven't had any problem with this account despite recent problems with their banking system) and was told by the cashier that it would take 5 working days to clear. I'll believe it when I see it but it does look finally as if the end is in sight and I can finally pay off my creditors. PayPlan has been informed. Watch this space...