help with a DMP and subsequent default pls

confused_from_midlands

I have had a DMP with what was then the CCCS since 2007. One of my debtors was my Lloyds current account with an overdraft of £6500. Throughout the last 7 years I have been receiving my statements showing interest accruing. I received a letter from Lloyds in December last year stating that I had not been paying my monthly payments and threatening a default. I phoned them and go nowhere - I struggled to communicate my issue effectively with the person from Lloyds who seemed to be reading from a script. I wrote a letter to Lloyds explaining that I had been paying the money back to them through CCCS every month and had even exceeded the original debt. Imagine my horror when I logged onto my credit report to discover a default for over £4k from Lloyds. I got straight onto the CCCS who informed me that they had stopped making payments to Lloyds in 2011 as they had reached the original debt amount. They have told me that they will send me the list of payments they made on my behalf and that I should contact Lloyds to discuss why they have continued to charge me interest.
I had no prior letter from Lloyds until the default notice in December so I had no idea until then that there was a problem. I did not receive a reply to my letter to Lloyds. Help! please!

DCFC79

Wait and see what CCCS send you and complain to lloyds and if no luck then take it to the Ombudsman.

Dont the debtors eg Lloyds in this case agree to freeze the interest.

confused_from_midlands

thank you for your advice. CCCS say that they request the interest is frozen but they don't have to. All six of my creditors have continued to charge interest - I would have cleared all the debts by now if they had!

DCFC79

confused_from_midlands wrote: »

thank you for your advice. CCCS say that they request the interest is frozen but they don't have to. All six of my creditors have continued to charge interest - I would have cleared all the debts by now if they had!

Oh I see, Ive not been in the situation so wasnt sure about the freezing, maybe asking them how much they would accept to settle.

fermi

They do not have to stop them, but Lloyds subscribes to the lending code that requires of subscribers.

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

Interest and charges concessions

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.

226. Concessions should not be arbitrarily withdrawn irrespective of a customer’s ability to pay or without any evidence of a
change in the customer’s circumstances. Expiry of a repayment arrangement should not automatically lead to the
withdrawal of concessions. This does not rule out regular reviews and if a customer’s position has improved then
interest and charges can be reintroduced.

227. Where possible, subscribers should have consistent policies for customers holding more than one product type in
terms of charges and interest concessions.

fermi

If you feel the default, it's date, etc, is inaccurate or unfair, then you can complain via the FOS and ICO.

If you feel that the charging of interest/charges has extended your repayment to an excessive period, then you can complain via the FOS.

While there are no guarantees and each circumstance is different, many forum users here have had success with such complaints.

DCFC79

Thanks Fermi for the extra info.

confused_from_midlands

Thank you all for your valued advice

longtermplanner

Is your DMP continuing? If it is, I don't understand how StepChange (what CCCS are now called) think they have finished paying Lloyds before the other creditors as your payments usually get pro-rataed so they all finish at the same time. If the DMP has finished, what has happened about the other 5 creditors who also charged interest?

It is very unusual for all of your creditors in a DMP to refuse to freeze interest.

It sounds as though we don't have the full picture here.

confused_from_midlands

CCCS have advised that they stopped paying Lloyds TSB in 2011 when they say the original debt repayment was reached. They are continuing to pay my other creditors. I had a call yesterday from Cabot Financial who have apparently been sold my debt by Lloyds TSB. They were actually quite helpful. I have now written to Lloyds TSB with all the facts so I'll see where that takes me. thank you

Hopelessly_Hopeful

confused_from_midlands wrote: »

CCCS have advised that they stopped paying Lloyds TSB in 2011 when they say the original debt repayment was reached. They are continuing to pay my other creditors. I had a call yesterday from Cabot Financial who have apparently been sold my debt by Lloyds TSB. They were actually quite helpful. I have now written to Lloyds TSB with all the facts so I'll see where that takes me. thank you

Were you updating the CCCS/SC website with your balance? I can only imagine they saw a zero balance?


HHx