Not getting anywhere on DMP because of interest

lycam_2

I've been on a DMP with StepChange (CCCS) since 2009 and am getting somewhere with most of my debts except a Halifax credit card. I'm only a couple of hundred pounds down on the debt in the last 3 years even though my DMP statement shows I've paid almost the whole amount. Every month the interest they charge me is almost the full amount of my reduced payment. When my payment has been lowered for a months last year they lowered the interest but still only to just below the new payment.
I had thought about reducing this to a £1 payment for a while to try and make them lower the interest/pass on to DCA but they have not defaulted me yet and worried they'll just default me if I do that. My other defaults are 3 years old so only 3 years left on these so don't want to get a new default now.
Is there anything I can do as they are not interested. I've written to them and they just say they have already reduced the interest so cannot do anything more. StepChange just said it'll be fine as once I've paid the full balance they'll write to ask them to remove the interest and charges but I just think why would they do that if they can get more money from me.

Time_to_face_the_music

lycam wrote: »

I've been on a DMP with StepChange (CCCS) since 2009 and am getting somewhere with most of my debts except a Halifax credit card. I'm only a couple of hundred pounds down on the debt in the last 3 years even though my DMP statement shows I've paid almost the whole amount. Every month the interest they charge me is almost the full amount of my reduced payment. When my payment has been lowered for a months last year they lowered the interest but still only to just below the new payment.
I had thought about reducing this to a £1 payment for a while to try and make them lower the interest/pass on to DCA but they have not defaulted me yet and worried they'll just default me if I do that. My other defaults are 3 years old so only 3 years left on these so don't want to get a new default now.
Is there anything I can do as they are not interested. I've written to them and they just say they have already reduced the interest so cannot do anything more. StepChange just said it'll be fine as once I've paid the full balance they'll write to ask them to remove the interest and charges but I just think why would they do that if they can get more money from me.

Have you complained to the FOS?

happy_bunny_2

Complain in writing to Halifax first. Then you can go to FOS if they don't help.

Time_to_face_the_music

happy_bunny wrote: »

Complain in writing to Halifax first. Then you can go to FOS if they don't help.

I think OP has already done this, as stated:

lycam wrote: »

Is there anything I can do as they are not interested. I've written to them and they just say they have already reduced the interest so cannot do anything more.

My other concern would be markers that Halifax are putting on credit files could be more damaging and longer lasting than defaults.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

lycam_2

I think I'll need to write to FOS then, already tried Halifax but no luck. I am worried as on my credit file they have not defaulted me but every month they mark late payments and I'm worried this damage may last longer, especially if they suddenly decide to make it a default then I'll have another 6 years to go, instead of the 3 remaining years on my other defaults.
It concerns me that if I put the payment up or down they do the same with the interest, it seems very devious to make sure I am always paying only slightly more so the balance never really goes down much.
I'm perfectly willing to pay back what I borrowed and with everyone else I am on track for this over the next 2/3 years. It's really annoying cos they're my oldest and biggest debt from when I was 18 so over the years they had many thousands in interest, other cards I never had for long seem to be much more reasonable.
Thanks very much for the help, think I'll get my complaint in to FOS just now.

happy_bunny_2

Google 'ICO default guidelines'. You will no doubt find it quite interesting. Sorry, no link as on mobile.

Pink-Angel

[QUOTE Is there anything I can do as they are not interested. I've written to them and they just say they have already reduced the interest so cannot do anything more. StepChange just said it'll be fine as once I've paid the full balance they'll write to ask them to remove the interest and charges but I just think why would they do that if they can get more money from me.[/QUOTE]

I was in this exact same situation with Lloyds (interestingly Halifax are now part of the Lloyds banking group I believe). I do feel for you. A year after starting my DMP my debt with Lloyds was actually higher than when I'd started due to interest charges, and I got pretty desperate about it as the DMP seemed pointless.

Like you, I'd written to them and got nowhere. So I sent one last letter listing everything and told them that I would be contacting the FOS if they were unwilling to help me. After I got no response, I rang the FOS. They were very helpful, and it's amazing that things suddenly moved. I got all my interest refunded (it went to reduce the debt) and they also defaulted my account which then stopped further interest being added.

Do persevere, and do try the FOS. At the end of the day you're wanting to pay off your debt, and the interest is making that impossible for you.

Good luck and keep your chin up