Reduced payment agreement

morveryn

Hi,

My husband and I went to Payplan 2 years ago and they organised reduced payment plans with all our creditors and had all of the interest stopped on the debts. Or so we thought.

We left payplan after they stuffed up several details of our debts and took on the agreements ourselves.

18 months ago my husabnd went bankrupt but one of the debts was in both of our names and so is still owing.

We have just found out that the interest was never frozen and our monthly reduced payments that we have kept up for 2 years is not paying off the interest accrued every month.

They have offered us a full and final payment which is out of our price range at the moment.

Any ideas where we go from here?

My first thoughts are, what can we do about the fact we were told that the interest had been stopped? We have no documentation to this effect as it was so long ago and we assumed that it was all sorted. That was what Payplan told us.

Secondly, where does the company stand re Consumer Credit act with accepting a reduced payment from debtors in financial distress that doesn't even cover the interest?

Please Help!

morveryn

bump!
Anyone ....?

RAS

Hi

On a DMP, they will ask for interest charges to be stopped, but there is no guarantee.

Payplan should have kept all the documentation for 6 years, so write and ask them for copies of all the correspondence re this debt as a starter.

morveryn

Thanks for that. Will try.

I understand that companies don't have to freeze interest but this comapny has gratefully extended us the privilege of a £33.55 payment each month when the interest is £60 per month!

Is that really acceptable?