Question re interest rates on DMP

elans

Hi, first post here.

I've had a look through but not seen any responses that match what I'm trying to do. I have a DMP that's run for a year. Most of the lenders have been fine with stopping or reducing interest, however Bank of Scotland in particular has been awful and left the full 29% rate in force. It means that on that particular debt we clear it down at about £13 a month. They reject the DMP on the basis that we pay marginally more than the monthly minimum every month (£1.25 more last month). It's several thousand £s so will take decades to go down.

My question is whether there is any point in trying (again) to ask them to reconsider a lower rate? Or has anyone found any good strategies to try and win a lower rate? Mrs Elans mentioned trying the Ombudsman this morning as BOS have also now stopped giving her any interest rate relief too after the 1st year review, but I can't find advice on what case to make - we have made them aware we are in difficulties but they seem happy to say that no, we're fine (despite Stepchange agreeing our debt/income/expenditure profile confirms we are in difficulty).

Does anyone have any good advice/resources/guidance on how to approach either BOS or the Ombudsman on this?

Thanks in advance - I'm pretty miffed about this as it's added a year to the length of time we now need to project towards being debt free.

sourcrates

This crops up a lot on here, one particular creditor not stopping interest, unfortunately they are not obliged to stop interest, have you tried a written complaint ? short of that there`s little you can do.
One way to tackle it, silly as it may seem, is to stop paying them, allow the debt to proceed through collections, then there inhouse debt collectors, and finally the debt will be sold on to an external DCA, who will not charge any more interest, and who will, with negotiation, take whatever payment you offer.


Depends if you are willing to take this course of action, but I don't see any other solution if the creditor wont play ball.

elans

Thanks, I did suspect as much. I'll be writing letters today anyway, so a couple more to the BOS won't hurt. I don't begrudge them charging some interest, but 29% is taking the proverbial. If I realised I'd had the option to stop the card as those rates went up, I'd have taken it.

My fault though, always wise after the event...

eyeopener2

Speak to stepchange and tell them to reduce the payment on that account to bring it below the minimum payment. You won't get anywhere with BOS.

However, I would proceed your complaint to the Ombudsmen, sometimes it's the only way.