Refusing to freeze interest.

gatwickba

Sent Coop the letter asking to stop interest, used the template from nationaldebtline.....they point blank refuse. Had a default letter from them about the account but the interest is now the same as the paymentI am making so no hope of ever clearing the debt

rayday2

Dont worry let me go look at a letter I sent out and come back.

rayday2

Hmm had a look through and not sure it would help you any I kept getting letters asking me to ring to make payment arrangements etc.

I wrote at the top "FORMAL COMPLAINT" I listed all the letters they had send and my replies with like a summary to prove I was trying to come to an arrangement. Then I listed all the payments I had made and the charges they had made in date order (Its ok I am very sad!)

I then explained I thought they were exploiting my position as I had told them many times and actually profiting from my debt problems rather than helping me come to a solution. I asked them to freeze interest and class the bank account as a debt so I could make headways into paying them off and that I would take it up further with the FSA.

But you sound like you have tried all that - it was more padded out and I found a few other things Lloyds had done like ring hubby at work and just had a real good moan at there lack of professionalism also through it back in there face that they supported the national debthelpline website (list is on there site) and yet would not support the advice they give out.

rayday2

Another point if they have treated it as a formal complaint they normal stick a leaflet in there reply if you have not had one of these they have not took you seriously yet so there is scope!

greytdog_2

the co-op can be a real pain - as i said earlier it me nearly a year of them adding interest, i also sent all the letters from nationaldebtline as rayday said and they still refused, they threatened to take me to court so on the advice of my money advisor (CAB) i told them to go ahead as if it is true that all your other creditors have played ball and frozen interest the judge would be on your side and critisize the co-op for not helping matters (making your situation worse) and wasting the courts time. This is the advice i was given obviously your would need to check with CAb or similar as your situation may not be the same. When i told the co-op debt management/collections dept to take me to court they backed down and said they would not win and this was when the debt was sent on to their other debt dept who were much easier to deal with and froze the interest.

gatwickba

Thanks to all for the support. Am still waiting for the next letter for Co-op. There is only 1 other creditor who hasnt frozen interest, but reduced it to 0.25% per month, all other have stopped it completely. Dont know why Co-op say "we dont do that" when obviously with comments read on here, they can and do!

Hey ho...part of lifes rich tapestry!

beanielou

The thing is that any creditor has the right not to freeze the interest.
I can see where you are coming from as the debt is not decreasing.
As you say part of lifes rich tapestry!

gatwickba

I know its their money, but I was wondering if there is a point where they cannot keep adding interest?

If the account is defaulted, closed and the original agreement terminated / breached, then surely there must come a point where they cannot keep adding to it?

If there is a CCJ for that debt, can that be accumulating interest? Not that we are at that point YET!

gatwickba

Coop have now accepted my offer on both current account overdraft and credit card. Interest and charges stopped.....they say it will be reviewed in 6 months, but if normal payments cannot be made after that then it may go further! At least 6 months are going to be normal.