DMP and late fees

amberalert

Hi, I have just entered into a DMP with Stepchange for two credit card companies Barclaycard and Tesco, both accepted my payment plan quite quickly and show this on my statements but Barclaycard haven't frozen interest, just reduced it to 3% and Tesco are adding a late payment fee of £12 to my statement. I was just interested to know if anyone else have had this experience when they started up their DMP, I am supposed to have paid my debts in 6 years time but if late fees are added every month it doesn't seem much better than what I was paying before the DMP was set up and I can't see me paying the debt off in time.

Puzzcat

amberalert wrote: »

Hi, I have just entered into a DMP with Stepchange for two credit card companies Barclaycard and Tesco, both accepted my payment plan quite quickly and show this on my statements but Barclaycard haven't frozen interest, just reduced it to 3% and Tesco are adding a late payment fee of £12 to my statement. I was just interested to know if anyone else have had this experience when they started up their DMP, I am supposed to have paid my debts in 6 years time but if late fees are added every month it doesn't seem much better than what I was paying before the DMP was set up and I can't see me paying the debt off in time.

It is usual for your total debt to go up in the setting up stage of a dmp so don't panic! Bc charge interest on a sliding scale depending on the amount you are repaying so this is also quite normal they do not have to freeze interest but if you can lower your payments to them it would help! Late fees should stop when the dmp is bedded in, so if they are still showing after your second payment then write to complain and ask them to refund.
Puzz.x

Deep_In_Debt

Yes, as above. Wait for the DMP to settle and creditors get used to it. It may take a few months but just ride with it.

BC were the same for me. If I recall, they froze interest for about 6 months and then added reduced interest of about 6% for the duration of my DMP despite me pleading with them to freeze interest again, they never did.

Good luck.

sourcrates

If they keep charging you, write to the creditor and complain about it.

Address your letter to the compliance officer.

Usually does the trick. ����

amberalert

Thank you for all replies received, I have taken on board what you have all said. I should have realised it won't be plain sailing. Hopefully it will settle down, if not i'll contact them.