Should I be worrying or is this part of it?

backwherewestarted

Hi all
not been on for a while as on top of the debt worry my mum has cancer and we've been dealing with that operations, travelling and million Hospital appointments! plus caring for her and my dad! so been very stressed.
Ive been on DMP with stepchange for over year now (not getting anywhere with the debts as no one has stopped the interest despite several letters to each asking *Iknow they don't have to and seems they havent' * )
but today recieved letter from TSB with a formal request for payment saying they will be going to court! Ive forwarded letter to SC but just wanted a little reassurance that I shouldn't panic. they saying I am in arrears of £190 but I should be way more than that in arrears by now especially after a year and interest accuring on top of the debt!
They also keep asking me to send credit card back Ive written 4 times now saying Im on DMP and could they stop interest and that I cut my CC up when I started the DMP
Just wondered what I should do?
Was thinking about going self managed but Im not sure I know what to do and what not to do. My head feels like its going to explode with everything.

sourcrates

Hi,

Read the letter carefully, does it say we "may" go to court, or we "will" go to court ?
The devil is in the detail, most banks just offload bad debts to debt collectors, they don't take action through the courts themselves, normally.

If it says we are going to take you to court, then that should be taken as a notice of intension, in line with pre-action protocol.

Either way, don't worry about it, it can all be dealt with.

backwherewestarted

Hi
It says may be instigated with out further reference. Plus they asking for full balance or reduced sum and realistic proposal for regular monthly payments *I already make the monthly payments via stepchange* they make no reference to the DMP ? and have never acknowledged it to me.

National_Debtline

Hi there,


It is difficult when you have taken the steps to deal with the debts, with a reputable and free provider and yet the bank is still not playing ball. I agree with sourcrates, the letter sounds fairly standardised and you shouldn't panic. It is true that these negotiations are all discretionary, but based on what you have done so far, I think you could consider a complaint to your lenders about the interest they are continuing to add and about the lack of acknowledgement of your DMP.


You could complain and reference the FCA Consumer Credit Sourcebook about the lenders behaviour, specifically the section about interest and charges to try and encourage your creditors to stop this (so your payments have more impact) - https://www.handbook.fca.org.uk/handbook/CONC/7/7.html


You can also look at doing self management, but if you have a lot going on in your personal life at the moment, you haver to consider if it going to be practical to take these negotiations as well? Good luck,


Laura
@natdebtline

backwherewestarted

Hi thank you as well
I did reference the bits about interest in the last 2 letters I sent *recorded the last one* in the hope interest would stop I also asked for the £10 fee for their financial scheme thing they added to the Overdraft I also have, on the DMP also, to stop I had reason to log into that account the other day and found they still charging it I never wanted it in first place but when I told them on phone before DMP I was having difficulties she said she would add this scheme while I contacted stepchange *their recommendation* and then cancel after the 6months free but they never have.
Ive had no problems with step change I just feel like after a year debts are increasing not decreasing despite over £1600 paid

sourcrates

backwherewestarted wrote: »

Hi thank you as well
I did reference the bits about interest in the last 2 letters I sent *recorded the last one* in the hope interest would stop I also asked for the £10 fee for their financial scheme thing they added to the Overdraft I also have, on the DMP also, to stop I had reason to log into that account the other day and found they still charging it I never wanted it in first place but when I told them on phone before DMP I was having difficulties she said she would add this scheme while I contacted stepchange *their recommendation* and then cancel after the 6months free but they never have.
Ive had no problems with step change I just feel like after a year debts are increasing not decreasing despite over £1600 paid

Your best bet would be to stop paying altogether.

Let all the debts default, once that happens the totals are frozen.

Then start your DMP again.

The letter is a standard threatogram and you can ignore it.

Only certain way to get interest stopped.

January2015

I agree with Sourcrates. Stop paying altogether. I would write and tell them that despite working with SC and trying to deal with your debts as they are continuing to add interest and charges your debts are increasing and therefore you will never be able to clear them. Let them know you feel you have worked hard to keep up the DMP payments but see no point in continuing to make such payments. I would ask again that they refund all interest and charges since the start of your DMP. Threaten to submit a formal complaint to the ombudsman. And then just stop paying.

Once the debts are defaulted/sold on to DCAs then start the DMP again and every single penny paid will reduce the debt balance.

backwherewestarted

Hi Thanks everyone
I was just in process of drafting a letter to them along the lines of I can't see the point keep paying as Im getting no where! and that I may even be in worse position in the coming year as a) I may lose my job if the place I work for closes which is possiblity or b) I have to give up to care for my mum & dad full time therefore they will get no monies
Ive just looked on my computer and this will be the 5th letter Ive sent the first before I went on the DMP informing them of the situation!
I know Argos are doing nothing as the payment from Stepchange is above the min payment anyway!

sourcrates

backwherewestarted wrote: »

Hi Thanks everyone
I was just in process of drafting a letter to them along the lines of I can't see the point keep paying as Im getting no where! and that I may even be in worse position in the coming year as a) I may lose my job if the place I work for closes which is possiblity or b) I have to give up to care for my mum & dad full time therefore they will get no monies
Ive just looked on my computer and this will be the 5th letter Ive sent the first before I went on the DMP informing them of the situation!
I know Argos are doing nothing as the payment from Stepchange is above the min payment anyway!

Sometimes you do everything right, and get no were.

So the only option for you is to force there hand, by taking control of the situation yourself.

It's almost a certainty that approx 6-8 months of no payment (or £1 a month token payment) will :

(A) get all interest stopped

&

(B) get all your debts defaulted and (most likely) sold on.

Debt buyers who buy these debts cannot add any further interest or charges (unless your original agreement allows it) most don't, so you can then start to actually pay it off, instead of losing all your payment to interest.

fatbelly

sourcrates wrote: »

Sometimes you do everything right, and get no were.

So the only option for you is to force there hand, by taking control of the situation yourself.

It's almost a certainty that approx 6-8 months of no payment (or £1 a month token payment) will :

(A) get all interest stopped

&

(B) get all your debts defaulted and (most likely) sold on.

Debt buyers who buy these debts cannot add any further interest or charges (unless your original agreement allows it) most don't, so you can then start to actually pay it off, instead of losing all your payment to interest.

I agree with this but it seems to me that even a token offer slows down the process with no benefit to the debtor.

I'd go for nil payments until the default

backwherewestarted

OK so do I just tell stepchange Im stopping payments or do I adjust my SOA so no money left *quite easy as I didn't include things like hair cuts /dentist etc as I cut our hairs don't go dentist unless emergency *
or just go self DMP and stop ?

thanks x