DMP Very BNPL interest advice please

frugaller

Hi

I am doing my own dmp and Very was the last to do. They said they can do a payment plan but CAN NOT freeze the BNPL interest charges of 39.9%.

Is this true please? I don’t know what to do with Very now, would really appreciate any advise, thanks so much.

My husband and I are both on benefits due to disability.

Willing2Learn

One option with Very is to withhold payment to them, to force them to default the account, to force them into passing the debt on to a DCA. ICO guidance states that a creditor should default the account once it is 3-6 months in arrears (only guidance though). Until then, I am afraid they are perfectly entitled to charge interest as that is agreement into which you entered.

How much do you owe them?

frugaller

I explained we have a low income now as we are on benefits due to both of us being disabled but they didn’t care at all

frugaller

I owe £1700 all on BNPL

Willing2Learn

Another option is to write to ShopDirect (Very), to make an official complaint. It would be your assertion that Very are failing to have due regard to the FCA handbook. One excerpt from the handbook says

A firm must treat customers in default or in arrears difficulties with forbearance and due consideration.

Examples of treating a customer with forbearance would include …

considering suspending, reducing, waiving or cancelling any further interest or charges (for example, when a customer provides evidence of financial difficulties and is unable to meet repayments as they fall due or is only able to make token repayments, where in either case the level of debt would continue to rise if interest and charges continue to be applied).

https://debtcamel.co.uk/creditor-wont-freeze-interest/

Edit: Also have a look at the post linked below:
https://forums.moneysavingexpert.com/showpost.php?p=67842823&postcount=16

frugaller

Thank you she said she was raising a complaint for me (even though I didn’t ask for one) with their excellence team (or something like that ), Becsuse she couldn’t help me. I didn’t think it would make any difference...

Willing2Learn

If you are going down the complaint route, then it is advisable to send it to the lady in the 'excellence team' by Royal Mail, so that you are starting a paper trail. Then, you will be able to pass all the associated paperwork to the FOS, if it came to the point where you are at deadlock and you wanted to escalate the complaint to the FOS.

sourcrates

Hi,

Catalogue companies offer high interest, long term BNPL deals to virtually anyone, there acceptance criteria for credit is pretty high, it’s one of the easiest forms of credit to obtain.

Trouble comes when you sign up to these deals, then realise you can’t pay it back.

Very are notoriously difficult to deal with, even after complaining, they always want more than you can afford, so the only way of effectively dealing with them, is to stop payment, unfortunately this can take a while to take effect, as shop direct group in particular, have various stages of debt collection, ranging from there in-house collections dept, then on to in-house debt collectors, yes two separate teams.

Both won’t offer you much choice, it’s only when the debt gets sold on that the balance will be frozen, and can be re-paid at an affordable rate.

frugaller

Will it make a difference to my other creditors who have agreed a freeze on the interest, if I have to somehow (probably a loan from family if I can) have to make the next BNPL payment?

I’m scared of paying very and not making my monthly CCs for 3 months (as agreed on telephone - waiting on paperwork re medical proof) or the near agreed £1 monthly token payment to Next.co.uk. (Pro rata stuff etc) Thanks x

Willing2Learn

Are you talking about paying the full £1,700 balance? Or are you just talking about making a single monthly BNPL payment? If you are talking about the former, then that would work. If you are talking about a single monthly payment, then that won't sort anything as you will just be back to square one again, the following month...

frugaller

I have 4 BNPLs to pay before the end of the year, then very is clear. Total £1700.