Can StepChange change payment to creditor after they've taken my monthly payment?

Mockingjays

Hello,

I'll probably find out to the answer to this tomorrow morning when I ring StepChange, but I thought I'd post in case anyone knew the answer/has been in a similar situation.

I'm on a DMP with StepChange. I've been having problems with one of my creditors due to the fact the payment SC allocate to them is so high. (For example I had got interest stopped and my CC account was going to be defaulted and passed on, but due to the SC amount paid they switched it back it to being a 'regular amount' and added interest again. Yes I realise creditors are entitled to charge interest, but once they reinstated it the debt was creeping down at a minimal level again thanks to the high interest and it would take me longer to pay.)

In February I made a reduced payment as I was moving. I did inform all my creditors of this. In March I made my usual payment. But yesterday I reached breaking point when I received the CC statement, which showed a default sum added as well as interest, making my balance higher rather than lower.

In a state, I rang the creditor, and to be fair the person I spoke to was extremely helpful and understanding. They explained the amount I'm paying through StepChange means the account would continue to accrue defaults and interest and so go higher rather than lower. The only way to change it would be to arrange a payment plan with a much lower amount that would enable my account to be defaulted with interest frozen and passed on. So I accepted this offer.

SC have already taken my monthly payment and on Monday I'll ring them to ask if they can pay this newly agreed token payment instead of the higher amount. There is time as the payment won't go to the creditor until the end of the week, but will they do it? Also will take on board an agreement I've made because what they're allocating is causing me problems? If they won't agree to paying the creditor this amount then I guess I'll have to look at doing my own DMP. I just want to pay off my debts and while this creditor is pushing up the balance higher and higher thanks to the amount SC have allocated them, this is never going to happen unless I can change things.

Thanks for reading and if anyone knows anything please let me know, I'll be grateful.

Time_to_face_the_music

Mockingjays wrote: »

Hello,

I'll probably find out to the answer to this tomorrow morning when I ring StepChange, but I thought I'd post in case anyone knew the answer/has been in a similar situation.

I'm on a DMP with StepChange. I've been having problems with one of my creditors due to the fact the payment SC allocate to them is so high. (For example I had got interest stopped and my CC account was going to be defaulted and passed on, but due to the SC amount paid they switched it back it to being a 'regular amount' and added interest again. Yes I realise creditors are entitled to charge interest, but once they reinstated it the debt was creeping down at a minimal level again thanks to the high interest and it would take me longer to pay.)

In February I made a reduced payment as I was moving. I did inform all my creditors of this. In March I made my usual payment. But yesterday I reached breaking point when I received the CC statement, which showed a default sum added as well as interest, making my balance higher rather than lower.

In a state, I rang the creditor, and to be fair the person I spoke to was extremely helpful and understanding. They explained the amount I'm paying through StepChange means the account would continue to accrue defaults and interest and so go higher rather than lower. The only way to change it would be to arrange a payment plan with a much lower amount that would enable my account to be defaulted with interest frozen and passed on. So I accepted this offer.

SC have already taken my monthly payment and on Monday I'll ring them to ask if they can pay this newly agreed token payment instead of the higher amount. There is time as the payment won't go to the creditor until the end of the week, but will they do it? Also will take on board an agreement I've made because what they're allocating is causing me problems? If they won't agree to paying the creditor this amount then I guess I'll have to look at doing my own DMP. I just want to pay off my debts and while this creditor is pushing up the balance higher and higher thanks to the amount SC have allocated them, this is never going to happen unless I can change things.

Thanks for reading and if anyone knows anything please let me know, I'll be grateful.

I have been in similar position and unless a lot has changed, am pretty sure the answer is no, Stepchange will not do this for you.

We moved to a self managed DMP via NED CAB

https://nedcab.cabmoney.org.uk/dmp.asp

and have never looked back. We managed to get interest stopped which Stepchange hadn't been able to do and we have been able to play hard ball with creditors who don't play nicely. I wish I had known it was possible to do a DMP on our own from the start.


If you would like any help, advice or support, please come and join us on the DMP & Mutual Support thread:

https://forums.moneysavingexpert.com/discussion/4437925

Mockingjays

Time_to_face_the_music wrote: »

I have been in similar position and unless a lot has changed, am pretty sure the answer is no, Stepchange will not do this for you.

We moved to a self managed DMP via NED CAB

https://nedcab.cabmoney.org.uk/dmp.asp

and have never looked back. We managed to get interest stopped which Stepchange hadn't been able to do and we have been able to play hard ball with creditors who don't play nicely. I wish I had known it was possible to do a DMP on our own from the start.


If you would like any help, advice or support, please come and join us on the DMP & Mutual Support thread:

https://forums.moneysavingexpert.com/discussion/4437925

Thanks very much for your post TTFTM - and for the links. I will ask StepChange on Monday, but I've already decided that I'll have to go to it alone if they won't help me. I'm determined to get out of debt asap and want to do all I can to make sure that happens.

It's good to know you're doing your own DMP and that it's working for you. The info on the CAB link will be really useful if I need to go it alone.

Thanks again

Mockingjays

Does anyone know if I can ask StepChange to return my payment to me for this month if they won't agree to pay a reduced amount to the creditor I've got issues with?