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Account is default and high interest question
Photogaz
Posts: 37 Forumite
I'm helping a friend to get a grip on her finances, get CCAs and reach settlement agreements.
All her accounts where she's defaulted and is on a payment plan are not charging any interest or are charging little. However, her payments to Halifax are £50 a month but £45 is interest. When she spoke to Barclays before they said that if she's on a payment arrangement, no inteest is charged. However, she told them that Halifax are and they said they are not allowed. Is that corrrect?
I wanted to check to see if Barclays were right and that's not allowed? What does that come under if so.
Advice please.
All her accounts where she's defaulted and is on a payment plan are not charging any interest or are charging little. However, her payments to Halifax are £50 a month but £45 is interest. When she spoke to Barclays before they said that if she's on a payment arrangement, no inteest is charged. However, she told them that Halifax are and they said they are not allowed. Is that corrrect?
I wanted to check to see if Barclays were right and that's not allowed? What does that come under if so.
Advice please.
0
Comments
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Hi,
A creditor is not obliged to stop charging interest, after all its her that's broken the agreement.
That been said, they are supposed to treat you fairly, and if by charging interest, they are extending the time it will take her to clear the account, then that would be reason enough to put in a written complaint.
Ask them to stop charging interest, and any other charges, as you believe they are not treating you fairly by not doing so.
If you still remain unhappy, expedite your complaint to the FOS.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thanks for this. Halfiax have agreed to freeze the interest and offered to return £150 over the phone. However, the interest of the past 2 years has accounted for £2,000 and would need to write to them get more back.
What is an acceptable figure to ask for in a return for interest? Is it wise to request a refund of the interest at this stage before doing a Full and Final settlement offer or should I ask for a return of interest and give a much lower offer?
Is this shooting yourselv in the foot doing this?0 -
What is an acceptable figure to ask for in a return for interest? Is it wise to request a refund of the interest at this stage before doing a Full and Final settlement offer or should I ask for a return of interest and give a much lower offer?
Is this shooting yourselv in the foot doing this?
You don't say how much there is left outstanding, so its hard to say really, would the interest refund, if granted, clear the account ?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The debt left is 4k, so the total left would be 2k0
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I think she (the person I'm helping) calulated it'd take something like 60 years to pay off the debt with the interest the way it was.0
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