Claiming in a DMP/IVA (merged)

Edinburghlass_2

I've merged the two threads now to keep the answers in one place.

carolbee

Edinburghlass wrote:

Interesting the bit about freezing the interest as I was searching earlier for threads regarding banks closing accounts and one user has the interest frozen and wondered if a reclaim would affect this.

I'll try and find the threads again later.

I was wondering about this, as I am in a self set up DMP, all with frozen interest, and my main debt is with Lloyds tsb, 2 x accounts and 1 x loan, totalling around 23K. I am really wary about rocking the boat and losing the 'advantage' for want of a better word of the frozen interest. I may be in a position to offer a full and final settlement on these accounts within the year and then will claim any charges once these are repaid, but for now I think I am going to keep the status quo.

would be interested to know if anyone else in a DMP not through Payplan etc has done?

mariannemarlow

mistakenly posted on the debt free wannabe board..

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Hi all

I have a debt management plan with the CCCS that I've had since early last year. For the last year I've been getting a lot of interest and charges added (mostly from LloydsTSB). as the creditors didn't agree with the payments offered to them.

Now that most of them have agreed (only this week!) I am thinking of reclaiming all the charges they have added.

Will this jeopardise the arrangement that I have with them or do you think I should go for it?

Thanks for any advice offered, I really appreciate it.

gray231979

Like many of you out there I got very excited at the prospect of inflicting some consumer revenge upon my bank. However, I'm in a financial prediciment that I fear may make me exempt from making a successful claim.

I'm currently in the process of setting up an IVA (Individual Volunteery Arangement). For those who are unfamiliar this is essentially an alternative to banktrupcy where one pays I vastly reduced monthly sum to the creditor based upon advice from a 3rd party debt company. This itself lasts for 5 years at which point the slate is wiped clean.

One of my creditors happen to be my old bank. I believe I may have been slightly overdrawn when it was closed but this sum was incorporated into the IVA (along with a £8,000 personal loan!). Now, my "old bank" happens to be the party I want to reclaim the charges from!!

Does anybody know of any reason why/why not I can/can't proceed with this? I've read the article on this site but can't find anything pertaining to my individual circumstances.

Any help massively appreciated,
Thanks & Regards,

Gray.

Edinburghlass_2

You need to read the above posts regarding DMP/IVA and claiming and be aware that any bank/credit card company you claim from is likely to expect any monies to be paid into their accounts.

emmy1_2

Hi I'll post this on debtfreewannabee too as Im not sure which forum its best on.
It seems a long speel but its being niggling me for a while. I have gradually become more and more in debt during and since leaving university. A lot of this is a result of living beyond my means. However over the last 6 years I have paid around £150 every month in bank charges to HSBC for going overdrawn. I have a good job, and have recieved regular promotions, but during this time I have had my head in the sand thinking my money problems would resolve themselves. Recently I have realised the extent of my problems and am in the process of entering a debt management plan which hopefully will leave me debt free in 6 years.
About 2 years ago I went to see HSBC to open a seperate account to put a monthly budget in to live on and leave my main account for bills, in an attempt to get control of my money. My local HSBC advisor was firmly against this idea advising me it never worked for people, and recommended I open a flexiloan account to move money in and out of to cover the times I would go overdrawn. I went ahead ( huge mistake!)As a result I have borrowed more from HSBC to cover their charges each month because I wasnt making enough to cover my borrowing anyway.
I dread to think how much I have paid over the years in way of charges, in a way i dont want to work it out as I worry they will refuse my repayment DMP offer if I try and claim, and knowing the true amount I have been charged will drive me crazy.
Does anyone have experience of this, should I go ahead or not rock the boat? HSBC are already being the most difficult of my creditors this will just make them worse.

ma1green

Right, mine is probably a story you've all heard before. In august 2005 my wife and i had to set up an agreement with the CCCS after finally being battered into submission by various creditors especially Abbey. I ran a courier business for about 5 years until i ran into difficulties ie customers not paying up. Obviously with not much money coming in the credit cards did'nt get paid on time, direct debit's were missed and the overdraft got eaten up very quickly. As you can imagine the bank charges and card charges came flooding in which had me digging that hole ever deeper right up to the point where we signed up with the CCCS (who have been great might i add).

Abbey froze my account with me owing them quite a lot of money ie loans and overdraft. I am sure i read somewhere that whatever i claim back they (ABBEY) will take the money off what i owe them which is only fair. I am now using my wife's account to have my wages paid into.

What i really want to know is A) Will this have everyone we owe money to scrambling for money which i don't have?

and Would it be possible to open an account with another bank or would i get refused for having bad credit history?

gibboking

After learning about being able to reclaim charges, reading all of the tips and advice carefully and raving about it to F&F I am actually going to start reclaiming my own charges!!
Starting with Abbey Credit Card as I already know how much they've had off me. £285 thats £351.01 with interest!!
Will post letter tomorrow and await their reply!!

I do have one concern that the accounts I will be claiming against are all in a debt management plan with CCCS, will this jepordise my plan at all even if it is my intention to pay any recleimed cash off my debts in the plan?
Any advice please guys.

Thanks in advance

PaulW922

There is no reason why other creditors would know that you have claimed back charges from Abbey. In your circumstances I would think getting all the charges back that you can might be worth considering. And as far as your credit history goes, it will be a problem but not an insurmountable one. See the Basic Bank Account thread.

beautifulfreak

I want to reclaim all my bank charges and credit card charges however i am worried as due to mistakes in the past i am now using a debt management scheme through CCS and do not have access to enough fund if the companies ask for the oustanding balancies in full. Are they likely to do this?