DMP & Mutual Support Thread - Part 11

Sazzie23

blisteringblue wrote: »

Yes that will be the case if you don't get the default.

Personally and I know many of you won't agree but they are not doing anything wrong. Basically in a trade off for not charging you interest (which I guess they are not doing) they will mark your account up to date but with AP markers (arrangement to pay).

You've 2 options basically, carry on interest free and you will have a poor credit file until paid off + 6 extra years, or you simply fight for the default now. Drop them to £1 for as long as it takes, but you will need to self manage the DMP for this.

We DMPers should expect consequences for defaulting on our agreements. This is one of those consequences I'm afraid.

I have the same with MBNA who have 30% of our debts. They are said interest free for the whole of the DMP as it's under 5 years in total, but have categorically said they will not default in that time.

Interest Free is more important than default to me so I'm going to just take it on the chin.

Yeah I see where you're going with this and it is totally your choice what you choose to do, but it's not always straightforward. For me at the start of DMP MBNA debt 1 was charging interest and did not default, debt 2 was defaulted almost straight away with no interest.

And for someone with a long DFD an AP marker could be problematic for a long time. So it's always a choice of what you do, just make your choice in an informed way.

Saz

make_the_change

I am on a self managed DMP and one of my creditors is still charging interest. My payment to Argos is £6.44 a month but I am being charged at least £3 interest each month. I just don't see the point as this will never get paid. Advice please!

sourcrates

make_the_change wrote: »

I am on a self managed DMP and one of my creditors is still charging interest. My payment to Argos is £6.44 a month but I am being charged at least £3 interest each month. I just don't see the point as this will never get paid. Advice please!

Write and complain !!!!!!

Keep bombarding them with complaints until they do stop interest.

Make a nuisance of yourself.

make_the_change

sourcrates wrote: »

Write and complain !!!!!!

Keep bombarding them with complaints until they do stop interest.

Make a nuisance of yourself.

Thanks.

Is there anything specific I need to say or quote?

Also, although I am self managed I have struggled with the agreed payment with my three larger creditors. With the summer holidays and some other emergencies, I haven't been able to pay them. What should I do x

sourcrates

make_the_change wrote: »

Thanks.

Is there anything specific I need to say or quote?

Also, although I am self managed I have struggled with the agreed payment with my three larger creditors. With the summer holidays and some other emergencies, I haven't been able to pay them. What should I do x

Your self managed, which means your in charge.

Only you know your finances, your choice what you tell them.

As regards the interest, tell them your struggling, the debts not reducing because of the interest, you think it's unfair, please stop charging me !!!

make_the_change

sourcrates wrote: »

Your self managed, which means your in charge.

Only you know your finances, your choice what you tell them.

As regards the interest, tell them your struggling, the debts not reducing because of the interest, you think it's unfair, please stop charging me !!!

That's the thing I just don't know what to say. With the summer holidays and some splashing out on the kids plus with Xmas round the corner I know I won't be able to start properly again until January time. I am just really scared and feel like I am going round in circles

Puzzcat

make_the_change wrote: »

That's the thing I just don't know what to say. With the summer holidays and some splashing out on the kids plus with Xmas round the corner I know I won't be able to start properly again until January time. I am just really scared and feel like I am going round in circles

Hi make the change.

I am unsure if you have already done token payments on your dmp or are doing them now? A dmp runs really well if you make as fewer changes to the amounts offered as possible. Obviously we all have emergencies these can't be helped. What you need to do now is review your budget and ensure you are saving in the categories like summer holidays and Christmas and so by the time they come round next you will already be armed..!! If you have to reduce your payments then do it to a realistic amount and maintain it as best you can, then you won't get hassle! If you can only pay £5 per creditor then so be it, they will either except or not, as long as your i & e shows that's what you can afford .

I did a complaint letter to one of my creditors about interest charging I will try and dig it out and post it up for you.

Puzz. x

Puzzcat

This is the letter I sent, you will need to adapt it and ensure you do follow up with the FOS if you don't get the response you need. Obviously creditors are allowed to charge interest but at worst you may get the % reduced, but hopefully frozen...


Dear Sir/Madam

Re: COMPLAINT – CREDITOR NAME AND ACCOUNT NUMBER

As you are aware, I am in a DMP with Stepchange, reference number ******. The majority of my other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist me in my present financial difficulties, and can only serve to delay my efforts to repay this debt.

I have already paid considerable sums in interest to my account. If interest charges continue, the monthly installments I am paying will only just cover that interest. Also, the cooperation of my other creditors who have agreed to freeze interest already would be put at risk.

I am aware that you subscribe to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I make would actually reduce the balance outstanding to your company within a reasonable time period.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately.
If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

grant1wish

FYI.


I sent that kind of letter to Argos, and whilst initially it seemed to be working and I had letters back apologising etc.. the outcome was a letter from head office saying they had already reduced my interest rate and they felt this was a fair outcome.


I have decided to go against what I probably should do and I am actually making additional payments to Argos to try and get the balance paid off ASAP. With the interest being added this debt could last forever.


G1W

muddlepops

Thank you, Sourcrates. I'm probably just getting a bit ahead of myself. Step change have cancelled my direct debit for the next 3 months or until I'm actually made redundant/ benefits are awarded and then they can recalculate. I've just been googling like crazy since cause I worked myself up as it was all sorted and now it's all unknown again. They didn't mention about making token payments in the mean time and I'm guessing that's because of the possibility of a DRO. I wish I could just switch my brain off for a month till it all hits the fan and then just deal with it. Work still have yet to give me a date and even when they do I wont be officially redundant until 3 weeks later. The thought of paying nothing until its all sorted is giving me the Heebie-jeebies. Stupid anxiety can go suck a fart.