DMP - Help!

Ginger182Ginger182 Forumite
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10 Posts Second Anniversary
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Hi,

I've just paid off my DMP in full with Payplan and noticed on my 'Completion Letter' that my creditors may charge additional interest and/or fees. Has anyone had any experience of this? 

I recall getting a yearly letter saying that 3 out of 4 of my creditors would freeze interest. The outstanding 1 I think Payplan said they were 'unsure' if they would freeze interest.

Thanks

Replies

  • edited 12 August 2022 at 1:20PM
    sourcratessourcrates Forumite
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    edited 12 August 2022 at 1:20PM
    If its paid off, then its paid off my friend.

    Payplan has to cover all the bases, you cannot charge fee`s or interest on defaulted debts.

    You can quite happily charge them £10 for every email or letter you sent them, works both ways.

    If your debts are paid in full, that is the end of the matter.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • Ginger182Ginger182 Forumite
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    Thank you for your message Sourcrates. Yes the debt has been paid in full. I need to contact the creditors (Wescot, Link and Cabot) in a couple of weeks to confirm that the accounts have been closed down.

    I had visions of me having another 3 years of paying back frozen interest!
  • sourcratessourcrates Forumite
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    Ginger182 said:
    Thank you for your message Sourcrates. Yes the debt has been paid in full. I need to contact the creditors (Wescot, Link and Cabot) in a couple of weeks to confirm that the accounts have been closed down.

    I had visions of me having another 3 years of paying back frozen interest!
    Good grief no, that`s not how it works at all, although I can imagine some bottom dwelling creditor trying that on, but no, creditors may or may not agree to stop interest, eventually most will, but interest cannot then be added back retrospectively, at the end of the arrangement, if your debts are showing as zero, then that`s it.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • peteukpeteuk Forumite
    781 Posts
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
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    Even if they were still charging interest it would be added as time goes by, not at the end.
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
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