Refusing to freeze interest.

gatwickba

Hello....

Still having my problems with the Cooperative Bank. They have accepted my reduced payments on my credit card for 3 months, the letter stated that after this time they would require an increase.
They reduced the monthly interest from 0.75 to 0.5 which basically covers my reduced payment and leaves 50 per month to actually pay the "debt".

Now they have defaulted my loan agreement, got the standard letter telling me the amount to repay in full. However, they have now reverted the loan amount onto my current account as an un-authourised overdraft (i do not use the current account except to pay the loan) and are still refusing to freeze interest on either the card or the loan.
I have sent them a letter (template from CCCS) asking them to re-concider the interest, but they simply reply that they cannot freeze it - full stop.

Any ideas where I can go from here?

gatwickba

<bump>

Has anyone managed to get them to reverse their decision not too freeze interest?

Thanks for any help.

trying-very-trying

I can't help here I'm afraid, but I shall watch this thread closely as I am in the same position with co-op bank.

trying-very-trying

They also told me that theyn were issuing a default on all 3 of my accounts, od loan and cc. I thought that if an account was defaulted then they had to stop the interest as the original agreement as breached, but they haven't frozen it yet.
From others on this site, the creditors may freeze interest after a few months, so I'll wait a couple of months before panicking.

gatwickba

I was thinking I was the only person in debt to Coop Bank!!!

I have received 2 defaults on the credit card, still getting interest charged, just got 1st default on the Loan. Spoke to Customer Services who informed me they would be "simply" moving the debt to my current account as an un-authorised overdraft.
She said they were sending me a tariff of charges but to take them with a pinch of salt and collections dept. would be intouch....cant wait :rolleyes:

Leixlip1

I had a three month agreement with them - on review they refused to keep freezing interest. I wrote again pointing out other creditors who had accepted, not treating anyone preferentially etc and again they declined and said they would refer to their collections dept. Then three days later they wrote again agreeing my payments/freezing interest for another three month period - not sure what changed their mind but I'm sure we will play the same game in December!

greytdog_2

i have had problems with a debt with co-op credit card - for 11 months they refused to accept my DMP even though all bar one of the other companies had (13 agreed out of 15). They continued to add full interest over this time resulting in my debt increasing by over £1000. They kept querying items on my DMP that no one else had. I sent the letter like you have and they still refused. Then one day out of the blue we had a call fromco-op saying that they were from a different collection dept to the one we had been dealing with and the lady was polite which is more than i can say for the other dept and she said that our offer was fair and reasonable and that it was agreed for 12 months with the interest frozen.

gatwickba

Its great talking with the collections people at Coop....like being in the headteachers office at school!

I like how they add interest to a certain level before deciding if to freeze it or not.

I wait the next exciting installment this week!

rayday2

There is a letter on the national debthelpline website which basically says that they are not helping you by refusing to freeze interest and courts would not like this etc etc

I put it to Lloyds like a formal complaint and got interest refunded. A few other bits as well.

gatwickba

Thanks for that...I will give it a go.

gatwickba

Spoke to Coop again today, regarding my loan. The woman in the Debt Management department was reading the notes on her screen....she said "customer unhappy about interests as other creditors have frozen...." she said to me, "you would have got your letter explaining about that yes?" I told her the letter just stated, 'we are unable to do that', and she added "yes we dont do that" and quickly moved on to the issue at hand today.

I have letters from Debt Management and also Collections at Coop bank.....at what point have people had interest frozen with this company?

Thanks.