Financial arrangements with card companies

Flyboy_3

I have been on an arrangement with one of my card issuers. However, they recently notified me that this arrangement was coming to an end, and they've just started to re-apply interest and have upped the monthly payment. It's all beginning to look like I'm going back to square one with !!!!!!!s, after making an effort to reduce the debt! I spoke to them today, asking where was the incentive to pay anything, if they're gonna re-apply all that interest. I am seriously considering defaulting on this card, and the guy I was speaking to more or less agreed with me!

The account will be passed to a collections agency soon, anyway, but I was wondering if anyone had any advice/experience in this situation?

mum2one

Basically the credit card company have the leaway to do a 3 mth arrangement, subject to that agreement finishing they go back to square 1, maybe worth asking for another 3 month arrangement.

To be honest the worst thing you can do at presently is default on the card, if it went to a debt collection agency or court, then the fact u will have kept up regular payments will go in your favour.

Maybe you need to contact the CBA and take things from there.

Larumbelle

Hi Flyboy.

Contact one of the organisations listed in my sig. They are free and impartial and can help you to work out an action plan. They can also speak to the card companies on your behalf and try to negotiate a payment plan.

Good luck x

Flyboy_3

Thanx to both of you.

My wife also says to keep paying them whatever I can until it goes to a CA; it's just that all that interest is getting racked up again. Spoke to the bank and they agreed to put me back on arrangement for another 3 months.

Used the services of CAB when all this kicked off, but don't want to burden them again, as they were getting swamped and I felt I could handle these swine on my own. I did get £2.5K back out of them on bank charges, and I'm def going after them for card charges after this, or when the court rules in favour. Or not.

mum2one

If its a credit card you can go through the process now its only bank accounts thats are on hold.

angelavdavis

Go onto Nationaldebtline's web site and use their template to send them a new letter, with SOA, explaining the situation with regard to your ability to pay and make a slightly higher than before but not as high as they are demanding offer.

It shows that you have been proactive in your approach and means you can ask them again to freeze the interest. Then increase your payment to what you have offered from then on.

If they refuse to freeze interest, and it eventually goes to court, you have proven yourself to be a proactive debtor who has tried to pay as much as you can afford and the court will not look positively on the bank for continuing their actions.

Larumbelle

mum2one wrote: »

If its a credit card you can go through the process now its only bank accounts thats are on hold.

Whilst it is true that you cannot get at the banks through the courts right now, many people are successfully complaining - and winning - via the ombudsman. On top of that, the beautiful thing is if you go to the ombudsman and lose you can still go through the courts assuming that the test case works out okay. EVERYBODY should try this route whilst the courts are putting stays on claims!

Flyboy_3

Thanx, guys.

Agreed re continuing payments. Will write to them offering slight increase. It's just annoying that the last year's efforts have been wiped out by the re-application of interest. I am back on a plan for next 3 months. What is really annoying is that this bank - HBOS - are now using an automated calling system to ring me a home, asking for payment of arrears. I have really grown to hate banks ( and some of the swine that work for them) over these last two years. I've paid a LOT of stuff off, but the way they attempt to grind you down is despicable.

tigerfeet2006

Make sure you write to HBOS using the template from National debtlines site
http://www.nationaldebtline.co.uk/ as per Angela's advice.

Also their ringing you constitutes harrasment there is a letter round here some where that asks for all communication in writing. I'll try to find it.

Flyboy_3

They've started to apply interest and are now applying late fees because they're I'm not paying them what they want. It's all starting again, the vicious cycle! It's almost as if they want to see you suffer!

I really, really hate these people!

chimp_choker

Sainsbury's have done this to me but i've been on a payment plan for 2 years now. I pay them £44 a month and the interest is £66 per month so I'm still paying the £44 and waiting for it to go to the CA or court. All the interest additions came about when I asked for the £100 charges they owe me to be sent to me via a cheque. The cynical part of me reckons that when the interest is above £100 they will reinstall the p[ayment plan and then stop the interest again "as a gesture of good will"