Payments refused through Payplan

lovelybirchtrees

I am looking for advice or information on what to expect next. I received a minor pay rise from my part-time employed and advised PayPlan to increase my payments to my DMP - Ok only £14 per month but that's a bit more than my rise is worth.

Now I'm informed by PayPlan that LloydsTSB and MBNA have refused the new payments. http://forums.moneysavingexpert.com/images/smilies/angry-smiley-030.gif

I have been paying regularly through PayPlan on a DMP for the past two years - my LBM was in August 2005. I started out paying too much because I forgot to subtract the amount I would need to pay for my taxes in my self employment income. This left me really struggling to make the tax payments and so I decreased my PayPlan payments after a year at the higher rates (Aug 2006). Then Lloyds insisted that they had had no communication from PayPlan and for the next 10 months added late fees and interest to what I owed on my loan, overdrafts and VISA card (they are 52% of my debt) so I am further behind than I when I started. Finally in June 2007 they agreed to freeze the interest and now when I increased the payment they have refused it.

I don't know what to do next. PayPlan said it might mean that Lloyds will sell the debt on. I can't increase anymore.

Has anyone else had this experience? What happens next?

My SOA August 2005 was as follows:

Lloyds Loan 14,659.17
Lloyds VISA 1022.53
Lloyds ac1 4000.00
Lloyds ac2 333.84
Sainsburys VISA 4309.47
MBNA Childline 8336.86
MBNA Alliance & Leicester 4232.97
MBNA Business 1500.25
MINT 2498.00

Total: 40,893.09

According to statements June 07
Lloyds loan 12457.12
Lloyds VISA 942.69
Lloyds ac1 3572.26
Lloyds ac2 194.73
Sainsbury 3321.61
MBNA Childline 6726.70
MBNA Alliance & Leicester 3523.01
MBNA Business 1105.97
MINT 1965.24
Total 33,857.85

Difference between Aug 05 and June 07 = £7035.24 despite paying PayPlan £10268 in round numbers.

My outgoings are set by PayPlan's budget and I can put them up if necessary but it is the payment end of things that I am concerned about.

OH has almost no income and is not counted in our payment schedule. He is considering going for and IVA which will get rid of two of the MBNA accounts (not the business one) and hopefully half of the Lloyds overdrafts. Unfortunately as OH wasn't earning the loan and VISa are totally mine. I can give the saga if anyone wants but suffice it to say he is applying for hjobs as well as trying to start a new business which is getting off the ground but slowly. There is the possibility of income coming but not so it can be counted on yet. So far the job applications have not brought anything in either. He is 64 and I am 63 this month.

I am employed two days a week and self-employed with a standard contract and a job which is about 20 hours a week which pays our rent.

Any advice useful, please.

Thanks

rayday2

I think that Lloyds will sell on and the DCA will probably accept.

You could try writing to complain formally to Lloyds that you are trying to reduce your debt and they are not helping by adding fees on and interest. I wrote to Lloyds and complanied, I did get some interest back and payments accepted for a year and a case of wine. I handle my own DMP soI could list all my payments all there charges and all my communications not sure how you could do this going through Payplan.

lovelybirchtrees

Thanks Rayday

Although Payplan were contacting Lloyds I was aware of the lack of communication (has to be heard/seen as well as sent) and was doing a good bit on my own as well. This ranged from walking into the branch and dropping off the list of creditors and budget to faxing the same to three or four different fax numbers as Lloyds was also hassling me with telephone calls and letters. I will try the complaint line although when I have written before they have seemingly ignored the letters. Was there a specific address you wrote to?

rayday2

Let me look through my correspondance and get back to you.

rayday2

Nathaly Otway
Customer Service Recovery Centre
Moore House
Black Lion Street
Brighton
BN1 4DA

lovelybirchtrees

Thanks. It will take me a day or so to get all the info together but I will get a letter off soon. It can't o any harm, I don't think and as they've ignored all my others...

Anyhow, I really appreciate your having looked up the address for me. It is not one I have used previously as I have the letters on the computer.

Seaxwyn

I can't help with this situation lovelybirchtrees but just wanted to say Happy Birthday for this month and hope the photography session and barbeque go really well.