Help With Frozen Interest

Malice2788

Hi MoneySavers!
I really need some help, I have an account I am paying off and they froze the interest for me. But this morning I received a letter saying the interest is now reinstated, is there any way I get them to re-freeze it? I called them and they were very unhelpful as always. I even prepared a new Finacial Statement to show that my surcumstances haven't changed (in fact due to other debt payments I'm now worse off). If I have to now carry on paying the interest I'm never going to get rid of it. I can only afford about £30pm at the moment and the interest is almost £20pm. At a difference of £10pm its going to take me years to clear a £600 balance....:(

The_Boss

Malice2788 wrote: »

I called them and they were very unhelpful as always.

I don't get this...they froze the interest for you which was obviously helpful.

How long had it been frozen for?

happy_bunny_2

Has the account defaulted? When?

Are you on a DMP?

bottleofred

Hi Malice,

They are actually under no obligation to freeze the interest and it should only stop if they have been to court etc (I think!). Are you still dealing with the original company that you had the debt with?

FireWyrm

Whilst BottleofRed is correct, they are under no obligation to freeze interest, these companies often require reminding that you are under no obligation to continue payments if it impacts too heavily on your life. Bankruptsy is always an option should things become too difficult and then they'll never get their money. Since your credit reference file is already shot, you have little left to lose. You could write them a polite letter pointing out that this tactic as unhelpful in the extreme and therefore since they continue to profit unfairly from this arrangement, you will be forced to rethink your situation and regret to inform them that due to unforeseen circumstances, you will now only be able to afford £1 per month. Should they however rethink their position, you will of course be able to rethink yours, but until that time, the money you are paying would be better spent paying down a debt that is not increasing exponentially....

Or words to that effect....

Worst they can do is sell it on, or send you a threatening letter or two. £600 isnt worth them hassling over.

Karonher

This is a quote - dont know why it is not showing as such

Quote You could write them a polite letter pointing out that this tactic as unhelpful in the extreme and therefore since they continue to profit unfairly from this arrangement, you will be forced to rethink your situation and regret to inform them that due to unforeseen circumstances, you will now only be able to afford £1 per month. Should they however rethink their position, you will of course be able to rethink yours, but until that time, the money you are paying would be better spent paying down a debt that is not increasing exponentially.... end quote

Would they not revert back to interest when the next £30 payment is made as clearly the person does have the money to pay? And then maybe look less favourably on giving any further help.

Would it also not hinder the paying off of the £600 as £1 paid off compared to was it £20 being added on means it would soon be £700 and the bigger it gets the more interest would be added.

The_Boss

FireWyrm wrote: »

You could write them a polite letter pointing out that this tactic as unhelpful in the extreme and therefore since they continue to profit unfairly from this arrangement, you will be forced to rethink your situation and regret to inform them that due to unforeseen circumstances, you will now only be able to afford £1 per month. Should they however rethink their position, you will of course be able to rethink yours, but until that time, the money you are paying would be better spent paying down a debt that is not increasing exponentially....

Or words to that effect....

Which I imagine would make the whole situation a lot worse given that it would clearly point to lack of co-operation from the OP over whether they want to pay rather than genuinely not being able to pay.

dancingfairy

Hi.
You may find that they agreed to freeze the interest for a period of say 6 months to be reviewed or perhaps they got annoyed that you are now paying the others back and not them?
As others have said they are actually under no obligation to freeze interest and charges
You do however have various options:
1) you could put in a formal complaint in writing that they are not treating you in a fair manner, and explain that you are actually worse off than before.Maybe have a look at the OFT guidlines on debt collection.
2) stop paying them (or reduce payments). Clearly if you do this then they could take you to court to fix the amount you have to pay as decided by a judge (and you may end up with a CCJ if you haven't already got one).

Are you paying all your creditors in proportion or have the others taken precedence? Obviously if you can prove they are all getting a fair share it will strengthen your case for them to cease interest.
Are the others stopping interest? again, this will strengthen your case.
Best of Luck
df

cc4rhu

Personally I'd send them token payments of £1 until they stop again. Worked for me and interest free for about 7 years.