Debt moved to Moorcroft....

duckie193

I have just phoned Payplan to advise them that 1 of my debts have moved to Debt collection with Moorcroft Debt Recovery Ltd.

This was a debt with HBOS and stands at £15095.19 with Moorcroft but is showing as £2418.38 less with Payplan because they don't count the interest and charges.

I spoke to Payplan to advise them that I had contacted Moorcroft this morning & that they would put a 30 day hold on the account until Payplan had set up the payment.
On questioning the agent at Payplan she said that Moorcroft might still apply interest and charges to the amount and that they will see what the can do - I haven't much faith in this given past experiences with Payplan.

I was given the impression when dealing with HBOS that once the debt was moved to debt collection that the amount would be frozen.

I would be grateful of any advice on how to deal with this.

Ready to get stressed all over again when I thought that this moving over to the debt collection agency was a good thing.

Thanks

Tixy

Often debt collectors will freeze interest & charges. However in the T&Cs of some credit agreements it does allow for a third party to continue to charge interest if the debt is assigned.

If moorcroft do continue to charge interest and the credit agreement says that they can and if Payplan does not manage to get it frozen then its worth writing to the debt collector yourself to ask them to freeze interest.

If you have any other creditors still charging interest then again its worth a letter to see if you can get them to reconsider (template letter on national debtline website if you want to do this).

spacey2012

Have you fully explored the debt, credit agreements request, that kind of thing to see if they have the required documents to collect.

duckie193

If you have any other creditors still charging interest then again its worth a letter to see if you can get them to reconsider (template letter on national debtline website if you want to do this).[/QUOTE]

I have been contacting all the people who I have debt with & asking for interest & charges to be frozen for the full year I have been on m DMP. Payplan have been doing the same according to what the are telling me.

The 3 largest debts are with HBOS and 2 smaller ones with Argos card and Next card - all still charging interest even after making complaint with the ombudsman last month.

Tixy

Would you say you have relatively high DMP payments compared to the balances owed? If this is the case it can make creditors less likely to agree to freeze interest.

duckie193

Tixy wrote: »

Would you say you have relatively high DMP payments compared to the balances owed? If this is the case it can make creditors less likely to agree to freeze interest.

In total I owe about £35000 - do you think that's an issue.
I am paying £558 per month and when getting O/T its ok but might struggle on bare wages.

timetogrowup89

I had a debt with moorcroft that I recently cleared. They froze all interest charges etc and put me on a £50 per month pay plan.

They froze charges and interest automatically when the account transfered to them from HBOS, I never had to do anything...