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Lloyds TSB - Interest

I'm just wondering if anyone has had any success having interest charges refunded to them by Lloyds TSB after entering into a DMP?

StepChange established a DMP for me to pay those that I owed, one of these was Lloyds TSB. All except Lloyds accepted the offer and froze the interest. However Lloyds accepted the DMP payment but did not acknowledge the DMP and freeze the interest until it was passed to their collections department around 18 months after the DMP was established.


I would regularly call them to let them know that a DMP was in place as would StepChange or I would advise them if they called me chasing for payment but still they would enter it onto their system but this just seemed to stall it being passed to their collections department. The amount I was paying was just short of the interest amount each month.

What I'm wondering, is if there is anyway to recover the interest charged to the account in the delay in passing to the collections dept and their acceptance of the DMP to further reduce what I owe them?


Thanks

Comments

  • Hi BEG

    I have just started a DMP (June) and have 3 x loans with Lloyds. They were my only creditors not to stop interest. Following advice on the DMP support thread I sent them a FOS (financial ombudsmen services) letter. I almost immediately received a phone call, a very pleasant lady, where she agreed to refund and stop interest - which appears to have happened for now. The loans have been sent to recoveries and default notices have/are in the process of being issued.

    I can't find how to insert a picture as I have a screen shot of the letter template... I will come back with a link to the template letter:)

    Good luck and best wishes....btw the DMP thread is worth following for super friendly support and invaluable advice:)
    LBM - 1 May 2014
  • Hopefully this works as a link to the letter - thank you to ttftm for the letter.

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

    Sarah x
    LBM - 1 May 2014
  • We have a number of Lloyds debts, 3 x overdraft,one cc and one x large loan.

    After a bit of letter writing, and threats of of FOH all but the cc have bee defaulted and interest frozen. I also got refunds on charges and interest backdated to the start of the DMP.
    LBM - July 2012
    Debt at start of DMP £36750
    Debt at Feb 2013 [STRIKE]£34600[/STRIKE] April 2013 [STRIKE]£34332[/STRIKE] October 2013[STRIKE] £29994[/STRIKE] February 2014 [STRIKE] £27196[/STRIKE] August 2014 [STRIKE]£24,072 [/STRIKE]
    January 2015 debt £0.00 - and not going back!
  • Thank you for taking the time to reply. This is really helpful. x
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