Interest on Debt whilst on a DMP

Onedaydebtfree

Hi, ok so I've been on a DMP for about 18 month and not missed a payment. I am now down to 1 creditor with about a £14k balance. All my creditors (4) stopped interest including this one but as my salary has increased my monthly DMP payment is now £970 per month. I'm slightly concerned that now this creditor sees all my DMP going to them will/could they start charging interest again? I'm technically still in arrears but won't be in 6 months as I'm pay more now than the originally was. Thanks!

sourcrates

Hi,

If your down to just the one creditor, they could argue you can afford the contractural payment now the rest have been paid off, and start charging you interest again.

Your not technically in a DMP anymore are you, so they would be within there rights to do so.

If they did start interest again, all you could do would be to write to them and argue your case, for example the balance will be cleared quicker as things stand now, and restarting interest will prolong the debt been cleared.

Onedaydebtfree

Great thank you. The debt was with Halifax and being paid through Step Change. It has now been transferred to Blair, Oliver & Scott so I'm crossing my fingers they won't start charging again! Would they notify me or would they just start charging again?