refinance package

danielleindebt

hi i have had 2 of my loans people accept my d.m.p. the last one is lloyds o/d. they sent me a letter accceptng the amount in the form of a refinace package. what does this mean? any advice?

rog2

It sounds like a 'managed loan' i.e. Lloyd's want to make even more money out of you.
Are you doing your DMP with PAYPLAN or one of the other Debt Charities?
If so, show Lloyd's letter to them.

danielleindebt

thanx. its with the c.a.b. they sent him a letter too. i have just come off the phone to him and he said no too. so i wondering now what the next stages are?

Jolinar

Just ignore them, this happened to me with lloyds, basically you lose any flexibility with the DMP by accepting. Say you need to reduce payments for whatever reason, you're stuck then with their lovely refinance deal, at a no doubt lovely interest rate, i think they offered me a 4 year deal at 10% apr.....the money on the dmp would have been repaid in 2.5 years....ridiculous. Nothing happened when i didn't take it, they'll send another letter soon complaining that you haven't taken up their generous offer....file it in the bin or line the budgies cage with it.

I think i have lloyds issue lol

rog2

I agree with Jolinar, DiD. There is a similar thread running, where a creditor is trying to 'gain preferential status'. The consensus of opinion, on that thread, is that Lloyd's will, eventually, accept your DMP.
Send any further letters to CAB.