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DMP creditors adding charges
Neveragain1_2
Posts: 3 Newbie
Hello I'm new to the forum. I'm in a DMP with Payplan for the last 7 years. I have 6 creditors. I initially owed £25k and have never defaulted on my plan and now down to £7k.
Now that the debt is reduced to this amount I was given the opportunity by a relative to make a FNF settlement to each creditor amounting to 40% of each individual creditor's balance outstanding.
However 2 debts from Lloyd's that we're sold on to idem have had greatly inflated charges and interest added to them. Referring back to pay plan they replied I quote
"Lloyd's have procedures in place with all of their accounts .......that move through several departments. Your account remained in the collections dept for some time and during this time, contractual interest was applied to your account. The interest wasn't frozen until the account moved to their recoveries team. You can dispute this directly with Lloyd's .... We are unable to do this on your behalf."
I am very upset as I was unaware that extra charged would be applied to this extent almost doubling my outstanding debt.
What do you suggest I do
Now that the debt is reduced to this amount I was given the opportunity by a relative to make a FNF settlement to each creditor amounting to 40% of each individual creditor's balance outstanding.
However 2 debts from Lloyd's that we're sold on to idem have had greatly inflated charges and interest added to them. Referring back to pay plan they replied I quote
"Lloyd's have procedures in place with all of their accounts .......that move through several departments. Your account remained in the collections dept for some time and during this time, contractual interest was applied to your account. The interest wasn't frozen until the account moved to their recoveries team. You can dispute this directly with Lloyd's .... We are unable to do this on your behalf."
I am very upset as I was unaware that extra charged would be applied to this extent almost doubling my outstanding debt.
What do you suggest I do
0
Comments
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What are the Lloyds debts for? Cards, loans, or overdrafts?:beer:0
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One is a Lloyd's bank credit card and one is a Lloyd's bank loanhappy_bunny wrote: »What are the Lloyds debts for? Cards, loans, or overdrafts?0 -
As you have been on DMP for 7 years, I presume these were taken out prior to April 2007?
If so, I would send Idem a CCA request. If they can't provide it, its unenforceable in court and you are in a good negotiating position for a full and final. They may also try and blag it, so important you get what they send you back checked out as it has to have the correct contents etc.
Also, you could send a formal complaint about unfair charges and interest given you were on a DMP and they should be treating you fairly etc. I would also send this to Idem, they might forward to Lloyds or they might tell you to send it to Lloyds, not sure.:beer:0 -
Thank you for your good advice. Letters are going off today with £1 request fee. Fingers crossed they realise I mean business0
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