On DMP but interest charges not frozen

LadyMarksy27

Hi everyone


First time posting here so be gentle!


I started a DMP with Stepchange just over a year ago. I've recently checked my statement and to my horror my credit card debts (Barclaycard, Aqua and Capital One) have all either stayed the same or increased due to the fact I am still being charged regular fees for being over my credit limit and interest, so any payments made have been completely negated by the ongoing fees.


I am wondering if it would be of any value to write to these companies myself to ask if charges can be frozen - realistically, they continue with the fees and interest, the debt will never be cleared!


I have heard that the only way to get the fees and interest stopped, is to stop making payments to the credit card companies for a while to allow the debt to go through the debt collection cycle and eventually be passed to a DCA - because at the moment, the fact I am making monthly payments, despite being way under the minimum, means that they wont put it through the collection cycle so I am stuck in limbo. Not sure if this is true.


Any advice would be much appreciated.

dumpyboy

Advice I was giving was to stop payments , I did not take it wish I had as mbna charged reduced interest for over 3 years and Sainsbury full interst and charges for 18 months ,thou fos did get 1 years worth refunded ,so I would stop and then put payment plan in place when stoped

sourcrates

If you don't ask for interest and charges to be stopped, you won't get interest and charges stopped !!!!!

Time_to_face_the_music

LadyMarksy27 wrote: »

Hi everyone


First time posting here so be gentle!


I started a DMP with Stepchange just over a year ago. I've recently checked my statement and to my horror my credit card debts (Barclaycard, Aqua and Capital One) have all either stayed the same or increased due to the fact I am still being charged regular fees for being over my credit limit and interest, so any payments made have been completely negated by the ongoing fees.


I am wondering if it would be of any value to write to these companies myself to ask if charges can be frozen - realistically, they continue with the fees and interest, the debt will never be cleared!


I have heard that the only way to get the fees and interest stopped, is to stop making payments to the credit card companies for a while to allow the debt to go through the debt collection cycle and eventually be passed to a DCA - because at the moment, the fact I am making monthly payments, despite being way under the minimum, means that they wont put it through the collection cycle so I am stuck in limbo. Not sure if this is true.


Any advice would be much appreciated.

Hi LadyMarksy27 :hello:

You need to write letters of complaint to the creditors still charging interest and if you don't get the response you want, you should then follow this up with the FOS.

If you post this on the DMP & Mutual Support Thread:

https://forums.moneysavingexpert.com/discussion/5285089

someone will help you with a template letter for your complaint. This thread is also amazing for support, help, advice and experience on all DMP issues.

You will also find a great selection of template letters on National Debtline website:

https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

Please let us know how you get on

TTFTM x

LadyMarksy27

sourcrates wrote: »

If you don't ask for interest and charges to be stopped, you won't get interest and charges stopped !!!!!

Both myself and SC have asked.

Puzzcat

LadyMarksy27 wrote: »

Both myself and SC have asked.

You need to write to them and ensure you use the word complaint and then you can escalate it to the FOS, that be can done online. If you have already written and received a not very helpful response you can escalate it now. But you do need to do this in writing to each creditor.

Puzz

LadyMarksy27

Thank you TTFTM this is really helpful. I will have a look at the letters today, and hopefully get something in the post so will let you know how I get on

blisteringblue

£1 a month for a few months will get your interest stopped in no time. I would even go as far as do it until they are defaulted as it just saves you so much hassle in the end.

Stepchange can't handle this though, so you would need to go self managed.