DMP mutual support thread part 13 !!

natlie

Hi,
MBN@ have written to me today to say that they are putting the interest back on my account I imagine this is because my minimum interest free monthly payment is £63.33 and SC are paying them £124.50
Thing is if they add back the interest my payments become £175 a month so what so I do?

Nat

Debtfreeat50

Does anyone have experience with overdrafts in a DMP? I entered into mine in February and as my overdraft couldn't be included, I wrote to Halifax explaining my financial situation and offering a repayment plan. I paid the first instalment off as per my letter but they ignored it and never replied. They then added 81 pounds in charges over the next month. 
I wrote again at the beginning of this month with a complaint and asked for no contact by phone due to mental health issues. They tried to ring me so I contacted again asking for written response. I have not received any response to date but they did refund the 81 pounds but today have started charging a daily fee again. 
I see no end to this and was wondering if anyone can help. My DMP is going well and have repaid 4000 pounds but this is really upsetting me.

BooBoo77

Debtfreeat50 said:

Does anyone have experience with overdrafts in a DMP? I entered into mine in February and as my overdraft couldn't be included, I wrote to Halifax explaining my financial situation and offering a repayment plan. I paid the first instalment off as per my letter but they ignored it and never replied. They then added 81 pounds in charges over the next month. 
I wrote again at the beginning of this month with a complaint and asked for no contact by phone due to mental health issues. They tried to ring me so I contacted again asking for written response. I have not received any response to date but they did refund the 81 pounds but today have started charging a daily fee again. 
I see no end to this and was wondering if anyone can help. My DMP is going well and have repaid 4000 pounds but this is really upsetting me.

My overdraft was with Halif@x - £9k at the time! Before I started my DMP, I opened a basic account with a bank that wasn't one of my creditors and started having my salary paid in there. I then wrote to them to say the same thing that I said to the other creditors that I couldn't afford payments anymore and was in financial difficulties and then the Overdraft was added to the DMP and defaulted and sold on after a while.  Hope you can sort it out. This is only my personal experience and I'm sure the more knowledgeable people on here will be by shortly.  Good luck!

sourcrates

Debtfreeat50 said:

Does anyone have experience with overdrafts in a DMP? I entered into mine in February and as my overdraft couldn't be included, I wrote to Halifax explaining my financial situation and offering a repayment plan. I paid the first instalment off as per my letter but they ignored it and never replied. They then added 81 pounds in charges over the next month. 
I wrote again at the beginning of this month with a complaint and asked for no contact by phone due to mental health issues. They tried to ring me so I contacted again asking for written response. I have not received any response to date but they did refund the 81 pounds but today have started charging a daily fee again. 
I see no end to this and was wondering if anyone can help. My DMP is going well and have repaid 4000 pounds but this is really upsetting me.

Overdrafts can be difficult to deal with, and take a long time to default, but are regarded as just another unsecured debt, you have done the right thing by complaining, however you may have to be more pro-active and ditch the account altogether, stop paying money into it, it will eventually go into default when the charges rack up, at which point the bank will freeze the account, and it will become just another non priority debt to deal with, at this point a further complaint about the charges should be made, and at the end of this you should just be left with whatever the balance on the OD was.

Then when whoever owns the debt at that point, writes to you, you will be able to make arrangements to pay it, with no further charges.

Hopefully you have already moved your day to day banking elsewere.

sourcrates

natlie said:

Hi,
MBN@ have written to me today to say that they are putting the interest back on my account I imagine this is because my minimum interest free monthly payment is £63.33 and SC are paying them £124.50
Thing is if they add back the interest my payments become £175 a month so what so I do?

Nat

When your stepchange payment exceeds the contractural repayment, they are going to add interest again are they not.

Why are SC paying them more than the contractural repayment ? just asking for trouble, maybe time to ditch them and do it yourself.

Suseka97

natlie said:

Hi,
MBN@ have written to me today to say that they are putting the interest back on my account I imagine this is because my minimum interest free monthly payment is £63.33 and SC are paying them £124.50
Thing is if they add back the interest my payments become £175 a month so what so I do?

Nat

This happened to me with Barclaycard, when the DMP payment eventually was just a little over the standard min. payt - and I had been in the DMP for around 2 1/2 years.  What you have to do is send in a formal complaint and if that doesn't get you
 anywhere you may have to manage the DMP yourself and keep the payment below their threshold.

I asked SC to reduce the BC payment because they had reinstated interest, but SC would not budge -I was fortunate that by complaining direct to BC they reduced their interest charges to around 1% and then after a few months I went self-managed and sent in CCA requests.  In doing so those debts returned as UE and I've not paid them in over 2 1/2 years pending decent discounts.

Suseka97

Debtfreeat50 said:

Does anyone have experience with overdrafts in a DMP? I entered into mine in February and as my overdraft couldn't be included, I wrote to Halifax explaining my financial situation and offering a repayment plan. I paid the first instalment off as per my letter but they ignored it and never replied. They then added 81 pounds in charges over the next month. 
I wrote again at the beginning of this month with a complaint and asked for no contact by phone due to mental health issues. They tried to ring me so I contacted again asking for written response. I have not received any response to date but they did refund the 81 pounds but today have started charging a daily fee again. 
I see no end to this and was wondering if anyone can help. My DMP is going well and have repaid 4000 pounds but this is really upsetting me.

Who told you that an overdraft could not be included in a DMP?  Are you with one of the debt charities?  An overdraft is an unsecured debt, just like any loan or credit card, and as such it is perfectly acceptable to be included in a DMP.

panda_magic

Suseka97 said:

natlie said:

Hi,
MBN@ have written to me today to say that they are putting the interest back on my account I imagine this is because my minimum interest free monthly payment is £63.33 and SC are paying them £124.50
Thing is if they add back the interest my payments become £175 a month so what so I do?

Nat

This happened to me with Barclaycard, when the DMP payment eventually was just a little over the standard min. payt - and I had been in the DMP for around 2 1/2 years.  What you have to do is send in a formal complaint and if that doesn't get you
 anywhere you may have to manage the DMP yourself and keep the payment below their threshold.

I asked SC to reduce the BC payment because they had reinstated interest, but SC would not budge -I was fortunate that by complaining direct to BC they reduced their interest charges to around 1% and then after a few months I went self-managed and sent in CCA requests.  In doing so those debts returned as UE and I've not paid them in over 2 1/2 years pending decent discounts.

We had the same issue with tesco. The original collection team would not budge and insisted that if I was paying the minimum, I could pay the interest. 
I took the single account back from payplan, then wrote to tesco myself and raised a complaint. I told them I wouldn't pay more than £1 per month, unless they stopped interest. 
They upheld my complaint, paid back over £1000 in interest, defaulted the account and accepted £1 payments for 6 months. They even paid £150 in compensation.
Its worth being strong and assertive.
(I've learned so much from this forum, I hope you do too) 

sourcrates

panda_magic said:
Its worth being strong and assertive.
(I've learned so much from this forum, I hope you do too) 

Exactly this, stand your ground, don`t take no for an answer, be a complete pain in the backside, usually they will agree just to be rid of you.

Skint2918

Hi ladies and gents I've been on my dmp with payplan since febuary and all seems OK. But I've been off work for a week this month  due to isolating   but been tested and I'm all OK. and will have to lower my dmp payment by £250 just for 1 month.  Will this effect my dmp much and will this aggrovate my creditors  and make them stop accepting my dmp payments