DMP & Mutual Support Thread - Part 11

gilmum

Cheffy1 I feel for you. It seems so unfair the way different banks treat DMPs - all we are doing is genuinely trying to pay off our debt and Halifax won't co-operate. You would think they would prefer us to go bankrupt.

January2015

Cheffy and Gilmum - sorry to hear of your issues with Hellifax. Although I call them Hellifax, they were actually really good with us. Our total debt to just Hellifax was over £30k (it was loans and OD but no cc's though).

They stopped interest and charges immediately we advised we were going onto DMP. They didn't default immediately but when we wrote explaining the DMP was not entered into likely and that we were looking at almost 10 years to clear our debts - they agreed with us and defaulted us on all accounts within four months.

cheffy1

SC pay £134 per month of my DMP payment to Halifax, halifax then add £219 interest per month! I now owe them more than I did at the start of the DMP, and only £100 less than the loan was originally for! At this rate I'll be long dead before the debts ever cleared

January2015

cheffy1 wrote: »

SC pay £134 per month of my DMP payment to Halifax, halifax then add £219 interest per month! I now owe them more than I did at the start of the DMP, and only £100 less than the loan was originally for! At this rate I'll be long dead before the debts ever cleared

Write to hellifax and quote the Lending Code:

Section 224 states:

• Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

Section 225 states:

• It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.

Ask Hellifax to explain why, when SC have clearly evidenced you are in financial difficulties they are continuing to add interest (and charges, if applicable) and their doing so is in direct contravention to Sections 224 and 225 of the Lending Code, to which they subscribe. In fact the interest they are charging, being more than your monthly DMP payment to them, means you will never clear the debt.


Ask them to review the account and refund the interest charges since the start of the DMP. Advise that you will await their response, but make it clear you are prepared to complain to the financial ombudsman.

January2015

Should have said - we won our argument for early defaults by quoting the sections of the lending code to Hellifax. Once we did that they agreed defaults were the best route for us.

Sazzie23

cheffy1 wrote: »

Have just found this thread, and thought I'd just drop in and write down some of the stuff that's swirling round my head.

9 months ago, it finally hit me, my LBM, and I finally took my head out of the sand and contacted step change.

I was £27400 in debt and was spiralling way out of control.

Anyway, step change advised a DMP, I worked really hard to change my lifestyle and live within a budget, and a monthly payment of £292 was started. Great, time to breath and relax, I'm finally doing it.

Since then, that's all I've done, lived within my budget, tried to save a few odd ££s when I can, and paid my £292 on time every month.

Today, I suddenly realised that in reality, I've slipped back into the "head buried in the sand" frame of mind, because I've just happily paid the agreed monthly amount, and hasn't even bothered to register online with step change to track my debt, check statement etc.

So, tonight, I've done that, gone through all my debts, checked and updated the balance of all my debts.

Now the depression has hit me, due to the interest being added onto my largest debt, with Halifax, I've only actually cleared £277 off my total debt in the past 9 months!!!!!

What's the point in it all, is life even worth it? I feel worse now than I did at the beginning!

Sorry for the long post, you've all got your own stuff to deal with, just needed to tell someone/write it down.

Your first LBM you started the DMP, now it's your second LBM, some people have it really quickly, but like you and me and many others it came along a couple of years in, and you realise SC/CAP etc won't do,it all for you, we need to take control and fight those charges.

If you've been a regular reader here you'll realise there are a few options to look at, self managed, reducing payments, CCA's, FOS to start a few. If it all seems to much, either tackle an easy one, like a small debt or go for one big interest charger. Today, write that one letter complaining about charges, I think Jan15 has given a template suggestion. Set on your,phone a reminder to follow up in 3 weeks if you have no reply.
Next month you can tackle 2 debts the same way, and the month after 3. Or if you are feeling empowered, go for them all... But making those little steps will help you get through this. It is progress in the right direction it make be small but it's better than none. :j

If anyone reading this is paying off less than their DMP payment each month due to interest or charges, I'd strongly advise these are the creditor you tackle RIGHT NOW. and if you don't know how much you are paying off, it's time to check folks:o

Sazzie23

blisteringblue wrote: »

Disgusting, plain and simple, the should simply be outlawed.

Absolutely, I feel a letter to my MP coming on again!

cheffy1

Thanks sazzie23, January 2015 and gilmum. Have got to work this morning, logged in, and seeing that complete strangers are kind enough to read and reply to my message, and offering kind words and advice has overwhelmed me a little, thank you. Think I might stick around on this thread if that's ok! Time to start writing some letters!!

Puzzcat

Hi Cheffy and gilmum,

If you go back a page to 99, post 1973, I posted a template only recently that you may be able to adapt to your needs.

Puzz. x

cheffy1

Puzzcat wrote: »

Hi Cheffy and gilmum,

If you go back a page to 99, post 1973, I posted a template only recently that you may be able to adapt to your needs.

Puzz. x

Thanks puzz. Just had a look, and will get writing ASAP, have an operation tomorrow, and will be off work for 3 weeks, so I've got the time on my hands to start getting pro active and get things moving in the right direction. Have also just read the first post from your diary, and will try and have a read thru your journey. Do you feel the diary helps? I'm wondering if it's something that would help me motivate myself to stay on track?