Barclaycard Refuse to Suspend Interest

moohound

My DMP starts at the end of the month I will let you know what response I get from BCard. It is my smallest debt by a long way, at £474, I dont know if the amount makes a difference to their responses. They have suspended the account for 30 days when I informed them of the DMP starting.

fermi

Please keep a thread like this on topic as much as poss please. Off-topic posts are now here.

Louise600

Time_to_face_the_music wrote: »

I'm with SAAC on this one. It's supposed to be about fairness but when creditors start treating us fairly, we may accord them the same respect. Until then they can whistle

Perhaps I should have also mentioned it's the DMP policy with CCCS to not pay outside the plan so she may find her DMP at risk should she do this and they find out. It's not about respect it is actually called a 'fair share' based on the original contractual payments. If you are not on a CCCS DMP you can throw money at any creditor as often as you wish!

Time_to_face_the_music

Louise600 wrote: »

Perhaps I should have also mentioned it's the DMP policy with CCCS to not pay outside the plan so she may find her DMP at risk should she do this and they find out. It's not about respect it is actually called a 'fair share' based on the original contractual payments. If you are not on a CCCS DMP you can throw money at any creditor as often as you wish!

A DMP is an informal agreement and is in no way legally binding. When we signed our agreement with CCCS, there was nothing to state there must be no payments made outside the DMP.

Time_to_face_the_music

Bosniavet96 wrote: »

Interesting answers folks, thanks. It seems that BC are basically chancing their hand with the interest situation, & as such I believe I will continue with my fight to get it suspended (after all, I only lose the cost of a stamp each time, & the gains are a lot higher). Given the recent media furore, I think I may have a better chance than previously.
Has anyone managed to get them to accept a settlement or get the debt transferred to a DCA? My total, on 2 cards, is approx £3k, I might be able to raise 50% (gift from parents/more affluent sibling), is it worth considering this?
Just for info, I am well aware that CCCS is free from charges, & is paid for by the banks etc. I also know that the easiest way to ruin all that I have "achieved" since 2007 is to stop payment to any of my creditors.

I think you should go back to the FOS. They do say if you are not happy with the creditor's response to contact them again. The FOS website states:

"The ombudsman has official powers to sort out complaints between you and a financial business you're unhappy with.
We look at the facts, ask questions and decide what's fair in each individual case.

If we think the business has treated you fairly, we will tell you why. But if we agree the business has done something wrong, we can order them to put things right."

It's worth another go.

eyeopener2

Time_to_face_the_music wrote: »

A DMP is an informal agreement and is in no way legally binding. When we signed our agreement with CCCS, there was nothing to state there must be no payments made outside the DMP.

Very true. All you have to do is change the balance on-line.

swampduck

Barclaycard is the only one of our creditors charging interest - so when snowballing it makes sense to throw any spare money at this debt. Or it was until - as others have found they upped the interest from 0% to 6% to 12.9%
We have been in a self initiated dmp for 4 years and their minimum payment is eaten by half because of the interest. It's so frustrating to see your debt free date drifting even further away!! This particular debt is will be hanging around for another 2 years plus - unless we can get enough money together to do a full and final settlement. I have no objection to paying the debt - but I don't like being kicked when I'm down!!

Swampy

Mach4

Obviously being charged interest is annoying.

But it is reality. I have a mortgage which I pay interest on, if i didnt pay the interest then the bank would have basically given me the house for free, why would they do that? Not charging interest on a loan is actually giving the recipient money because of inflation

In a DMP basically the loans / ccs suspend interest because they see you are in deep trouble and they would prefer to get no/little interest than have you go down an insolvency route or just stop paying completely.

As you get out of trouble and the cc /loan providers will see it happening it is natural for them to want to start charging interest again. It is rubbish but not much you can do about it.

andy1886

Mach4 wrote: »

Obviously being charged interest is annoying.

But it is reality. I have a mortgage which I pay interest on, if i didnt pay the interest then the bank would have basically given me the house for free, why would they do that? Not charging interest on a loan is actually giving the recipient money because of inflation

In a DMP basically the loans / ccs suspend interest because they see you are in deep trouble and they would prefer to get no/little interest than have you go down an insolvency route or just stop paying completely.

As you get out of trouble and the cc /loan providers will see it happening it is natural for them to want to start charging interest again. It is rubbish but not much you can do about it.

But the point is whilst on a dmp you have no access to credit so you can't transfer the debt meaning you have to keep paying them what they decide until the balance is cleared , extending the end date by months / years in some circumstances .
By " getting out of trouble " most on a dmp don't get out of trouble they keep paying the same amount each month gradually reducing the balance down to zero . Barclaycard charging interest is unfair because unlike the " normal " market place these customers are tied in to them paying a fixed percentage a month until the end of the agreement , not fair at all and nothing can be done about it .

eyeopener2

And do you think it is fair that they use risk based pricing for interest rates? A poster on here has M&S charging her 29% interest on he card, she is on a DMP. (I'm paying 18% on my M&S card, 12% on Barclaycard - i've been on a DMP for 2 years)

The reason for the large interest rate? She is a bad credit risk.............no **** Sherlock. Shes on a DMP!

Disgraceful, and Barclaycard and all the others should be ashamed.