still adding interest and late charges

getting_my_life_straight

I am currently in a DMP and sone of my creditors are both adding interest and on a couple of cc's are adding late charges and overlimit fees.:mad: They know I am on a dmp and still add all these charges. Is this something I can challenge?

fatbelly

Yes. If they are subscribers to The Lending Code then remind them of paragraph 224:

224.
Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.
225.
It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.

Ask them to stop charging, and refund charges already made.

If they are not subscribers, then ask them anyway. If the response is negative, get that in writing as a final response and refer it to the FOS.

getting_my_life_straight

Thanks for that, think I will contact my Dmp tomorrow and see what they have to say. I am going all out to pay debts off asap, to the extent I have fired off letters re ppi and reclaim charges on old accounts that have been prev paid off.

*Foolish*

I've recently sent letters to two of my creditors requesting they stop charging interest and late fees, got letters off both requesting my income & expenditure...which StepChange will have sent them at the beginning. Back to the letter writing!
Good luck.