Creditor charging interest again

Gaia2014

Hi,

I've posted on this issue earlier, but can't find the link...

So I've started a self administered DMP (3 months in) and so far so good apart from one thing. One creditor (JD Williams to be precise) has started applying interest to the tune of around £50/month, which represents half my monthly repayment. Therefore, it is going to take me longer to pay this debt off. I don't recall them applying interest when Step Change managed the DMP. :mad:

There rationale is that I'm now paying the normal contractual payment. Feeling frustrated.

Any thoughts. I am never going to use a catalogue company again!

blisteringblue

Now you are no longer with Stepchange start paying them £1 a month until they default you. I left Stepchange for this very reason, Barclaycard and Opus would not stop interest. They all get a token again.

I've spoken to them all to tell them why I am doing this, Barclaycard are fine and have stopped interest. Opus haven't yet but every time they ring I still tell them I am paying £1 until they default me. I just say well you are recording this call so you know my position and why I am doing it, so why don't you just default me and then I will increase my payment again.

Yes you do get calls again, but OPUS is our smallest debt so it's not really an issue if they decide to take it further.

sourcrates

If your paying the same or similar amount as the contracted payment, then they will charge you interest again.
Your best bet, as the other poster has said, is either to stop paying them, allow the account to default, and get sold on, or pay £1 a month, either way you will get a similar response, then when a new DCA picks it up, there will be no interest to pay, and you can start to clear the debt.

Gaia2014

sourcrates wrote: »

If your paying the same or similar amount as the contracted payment, then they will charge you interest again.
Your best bet, as the other poster has said, is either to stop paying them, allow the account to default, and get sold on, or pay £1 a month, either way you will get a similar response, then when a new DCA picks it up, there will be no interest to pay, and you can start to clear the debt.

Thanks. I guess the reason I'm hesitating is because I can do without the stress.
However, I was paying a similar amount whilst on a DMP with Step Change and the creditor froze interest. I guess SC have more influence than somebody who is self administering in that regard .

Gaia2014

blisteringblue wrote: »

Now you are no longer with Stepchange start paying them £1 a month until they default you. I left Stepchange for this very reason, Barclaycard and Opus would not stop interest. They all get a token again.

I've spoken to them all to tell them why I am doing this, Barclaycard are fine and have stopped interest. Opus haven't yet but every time they ring I still tell them I am paying £1 until they default me. I just say well you are recording this call so you know my position and why I am doing it, so why don't you just default me and then I will increase my payment again.

Yes you do get calls again, but OPUS is our smallest debt so it's not really an issue if they decide to take it further.

Unfortunately this creditor is my biggest debt :eek:. Hence the high interest (around £1,500 still to pay). The remainder of my debts (around £5,000 in total0 are smaller, but no interest applied.

I realised that if I was to default the debt would get passed on to a DCA and the interest would likely cease. But, I could do with out the phone calls, letters etc. I will think on it. Thanks :beer:

boothca84

To stop interest with JD williams, you pay less than 3% of the outstanding balance but need to agree to a repayment plan with them directly. they will NOT discuss interest as they are not allowed to but if under 3%, interest will stop within 2 months.

But saying that, you should have paid your bill in the first place and not expect for nothing. You knew the rules when you signed up. People frustrate me who think the world always owes them

boothca84

Another thing, they technically do not have to stop interest when with a DMC. They decide to do it at discretion. The terms of the original contract of any form of credit account is that there is interest on a balance unless paid in full at the first statement. If you fall behind and are struggling, then companies will help temporarily and reduce payments to help you maintain payments, not stop the contract you agreed with.

so_very_confused

boothca84 wrote: »

To stop interest with JD williams, you pay less than 3% of the outstanding balance but need to agree to a repayment plan with them directly. they will NOT discuss interest as they are not allowed to but if under 3%, interest will stop within 2 months.

But saying that, you should have paid your bill in the first place and not expect for nothing. You knew the rules when you signed up. People frustrate me who think the world always owes them

boothca84...... an employee of JDWilliams?
If not, we try to be less judgemental on the DFW board.:)

sourcrates

boothca84 wrote: »

To stop interest with JD williams, you pay less than 3% of the outstanding balance but need to agree to a repayment plan with them directly. they will NOT discuss interest as they are not allowed to but if under 3%, interest will stop within 2 months.

But saying that, you should have paid your bill in the first place and not expect for nothing. You knew the rules when you signed up. People frustrate me who think the world always owes them

Why sign up to a debt forum, just to rant at people ?

Pent up aggression me thinks,

In future play squash or something, or try bingo !!

patman99

Boothca84 you have no idea of how people's circumstances can change over a period of time.

When the op originally took out the cataloge and purchased from it, they may well have been on a good salary. Since then, they may have been made redundant and are now working for a lower salary.