Full and final settlement advice

JVRMac

So it's been quite some time since I last posted about my debts and at that time I was in debt crisis and didn't know what to do but with the support from this group I started to face up to my debts and slowly got my life back. 7 years later and I am finally coming to the end of my DMP with only another year to my debt free date and once again I need some advice. Over the course of my DMP my debts have all gradually been turned over to DCAs all except 1 which has hung on, now it's this 1 that I have an issue with. Halifax has kept hold of my debt and is charging me interest on the debt for the last few years. I've spoken to Stepchange a while ago who told me that it's there right to charge interest and nothing they can do. I've spoken several times to Halifax and they always refuse to suspend the interest. Now I've just received a letter from another of my debts crediting me with unfair charges when I was struggling with debts and it has got me thinking about Halifax and what options I have as feel I haven't been treat very fairly from them not just charging interest but regularly declining my (Stepchange) payment agreements. I've had a recent statement and the outstanding debt is almost double what is on my Stepchange expected balance which once I update will add another 3 months onto my DMP expected debt free date, plus I am due to be made redundant at the beginning of August. I am thinking of sending a full and final settlement letter just to Halifax and using some of my redundancy to settle this debt. My Halifax statement shows a breakdown of balance.
Purchases - outstanding balance £492.47
Default charges - outstanding balance £408
So was thinking of offering to pay the £492.47 in full and final settlement.
I can't ask Stepchange as I know they frown upon settling 1 creditor but do you think this is reasonable?  I dont want to use any more of my redundancy payout as I don't know how long before I get another job and there is also the possibility that I may have to reduce my DMP whilst I am not earning any income which would extend my DMP even further.
I really appreciate anyone who takes the time to read all this and offer me their advice.
Thanks

fatbelly

Yes, I think that's the way forward.

If you can, work out how much they have charged since you entered the dmp and quote that figure. You could continue to argue about them but if you can reach agreement to settle then you can just wave goodbye to them.

Weimsrock

Have you raised a formal complaint with them? If not I’d raise a formal complaint with them that they should have defaulted you a long time ago. Give dates of dmp etc and state that you are disadvantaged in comparison to someone who ignored the debt and didn’t try to repay. There’s standard wording somewhere on here for you to include in the complaint. I complained to Halifax a month or so back and it was resolved within a day or two. If you manage to get the default backdated then the interest would also be returned I expect. 

JVRMac

Weimsrock said:

Have you raised a formal complaint with them? If not I’d raise a formal complaint with them that they should have defaulted you a long time ago. Give dates of dmp etc and state that you are disadvantaged in comparison to someone who ignored the debt and didn’t try to repay. There’s standard wording somewhere on here for you to include in the complaint. I complained to Halifax a month or so back and it was resolved within a day or two. If you manage to get the default backdated then the interest would also be returned I expect. 

No I haven't, I'll see if I can find the template and give that a go first, thank you.

Weimsrock

JVRMac said:

Weimsrock said:

Have you raised a formal complaint with them? If not I’d raise a formal complaint with them that they should have defaulted you a long time ago. Give dates of dmp etc and state that you are disadvantaged in comparison to someone who ignored the debt and didn’t try to repay. There’s standard wording somewhere on here for you to include in the complaint. I complained to Halifax a month or so back and it was resolved within a day or two. If you manage to get the default backdated then the interest would also be returned I expect. 

No I haven't, I'll see if I can find the template and give that a go first, thank you.

For what it is worth I would recommend using the complaints process on their website, that’s how I did it and got a very fast response and resolution. Key point to express is that by them not defaulting you, you are at disadvantage in comparison to someone who ignored the debt. You entered the dmp and it was made clear to Halifax that it was a long term arrangement and not a short temporary situation. Really dig your heels in and they should enter a backdated default from what you’ve described 

fatbelly

OP - I assumed they had defaulted you?

But were still charging interest?

JVRMac

I've just checked my credit file and there is no default on there from them, yet the pay arrangement shows from 2015.

fatbelly

Sorry got confused when you said default charges.

Yes, complain as stated. 

They probably won't be open to full & final until they have defaulted you.

Arrangement to Pay is a pain

JVRMac

Thank you both, I have raised my complaint. You have got me thinking about defaults now, so I have 5 creditors that I'm paying on my DMP but when I check my credit file, there is only 3 showing, one is Halifax and the others are for Nationwide and Barclaycard. The Nationwide which has not gone to DCA shows defaulted as of July 2015, so will that disappear after next month as the 6years have spent and is that why I can't see my other 2 as they will have dropped off? The other is Barclaycard which is being paid through Link DCA, now this one doesn't show an A for arranged payment but a tick going back to 2016, status shows currently open. Is that ok or do I need to do something with it? 

fatbelly

If it's not showing as defaulted then it's the same as Halifax

JVRMac

Thank you @Weimsrock and @fatbelly for all your help, just had a call from Halifax, they agreed with everything I had raised in my complaint.  They apologised and agreed to write off all interest from 2014 onwards including any charges totalling £560, also going to update credit file to remove any negative data and remove the payment arrangement from 2020 and £150 good will. Which will leave me with a balance of around £160 left to pay.
Couldn't have done it without you, thanks