Question Re. Provident / C K Edrupt DMP Interest charges

Monkeyballs

Morning all,

I have already posted this on the DMP Mutual Support thread but thought it might be worthwhile starting a new thread in case anyone has any useful information but doesn't necessarily read that one...

I entered into a DMP back June last year and one of my creditors was Provident.

The balance at the time was around £1750 and I had been repaying (or trying to at least) for a few months already.

When I originally contacted Provident to advise them that I was entering into a DMP and pass on my DMP ref. the person I spoke to was clearly annoyed and refused to confirm a balance stating that the full amount including all interest needed to be repid.

Due to this I informed Step Change of the balance plus interest remaining which was approximately £3250.

This meant that approximately £1500 was interest and effectively interest was not frozen and I was having to pay full interest despite the loan not having gone full term...

More recently I contacted Provident again to ask about freezing interest and get a balance I.e. If I paid it back now (now being approximately half way through what would have been the repayment term) what would it be? They declined to answer and instead referred me to C K Edrupt.

Duly, I contacted C K Edrupt who were quite aggressive and intimidating over the phone and stated categorically that even though the term of the loan had not lapsed I still owed the FULL interest which would have accrued over the period of the loan and offered to reduce the balance by a token £50.

Has anyone had any experience or have advice for me to ask for the interest to be frozen (or in this case removed) of C K Edrupt as it doesn't seem right that of the money being repaid, approximately half is actually to cover interest charges?

Many thanks for reading,

MB

fermi

Depends what the terms of the loan were? On many regulated fix sum loans, if you default on them then the full sum over the whole term of the loan including interest becomes payable right away.

Monkeyballs

H Fermi,

Ahh... Ok so potentially because I broke the original terms then the whole amount may be payable depending on contract... Cool, I'll check out the small print then in that case

Ideally the person at C K Edrupt would have just said this to me but I guess it's just one of those things!

Thanks again,

MB

swampduck

I think Provident is one of the loan companies that add your interest at the beginning of the loan term so the total that you see is the full amount outstanding.
So for example you borrow £1000 their interest is £750 total owing £1750. You agree regular payments for the duration of the loan if you pay it off earlier they will recalculate the loan to reduce the interest. If however you exceed the duration of the loan the full amount is still due so no recalculation of interest but neither will they add any further interest for the period of however long the loan remains outstanding.
So it would appear from your conversations with both Provident and CK Edrupt that they are reinforcing this point and that there will be no recalculation of interest.

Swampy