Has anyone missed/reduced a DMP payment and what response did you have from creditors

Monkeyballs

Hi MJ,

Sounds like you're making great progress!

Which is the creditor still charging interest? Have you contacted them about it? There is a letter on this site which you can send asking them to stop (I'll find a link and add it unless someone beats me to it).

Here: http://forums.moneysavingexpert.com/showpost.php?p=62784742&postcount=2285

MB

Mockingjays

Thanks for the link MB. Yes, I did write to the creditor (Lloyds). They froze interest for a few months but then started adding it again. Apparently I'm paying 'too much' for them to default my account (?). I even contacted the FSO but they ruled in Lloyds favour. I received a snotty letter from the person at FSO commenting on how they didn't have to stop interest and that I'd got into debt. Nice! I'm aware of that, but if Lloyds would freeze interest I could pay them back quicker. I think they're trying to make a my life as hard as possible....

Monkeyballs

Mockingjays wrote: »

Thanks for the link MB. Yes, I did write to the creditor (Lloyds). They froze interest for a few months but then started adding it again. Apparently I'm paying 'too much' for them to default my account (?). I even contacted the FSO but they ruled in Lloyds favour. I received a snotty letter from the person at FSO commenting on how they didn't have to stop interest and that I'd got into debt. Nice! I'm aware of that, but if Lloyds would freeze interest I could pay them back quicker. I think they're trying to make a my life as hard as possible....

Hi MJ,

Ahhh... That old story...

You'd be well to post on the DMP Mutual Support page: https://forums.moneysavingexpert.com/discussion/4437925

From what I understand it's a failing of the way in which SC allocate payments so some creditors either reduce interest (like Barclaycard for me) or refuse (like you and Lloyds).

From what I gather there are three options 1. carry on as is and just accept the interest (while challenging but if the FSO has already ruled then probably won't happen), 2. make overpayments using any free budget at the end of the month to compensate for the interest or 3. manage your own DMP and cut their payments to a degree where they don't have much option beyond freezing or at least reducing it!

I'd advise posting on the DMP mutual support thread though as there's loads of people who can offer more advice

Good luck!

MB

PureSept

I've just come across this thread and I'm glad I did! Im having to make a reduced payment this month due to me being ill from work, I've contacted stepchange and had my direct debit changed to 200 less than what I would normally be giving my creditors, they gave me an option to cancel it this month and totally miss the payment or to pay a token which I have put into place now, I've been told to email my creditors explaining the circumstances this month and to say things will resume back to normal after this month.

How did yours go? Did you manage to keep your creditors happy? I figured as long as I made a payment it was better than not making anything.