DMP with stepchange virgin credit card still charging interest

funkypigeon21

Hello,

I've recently started a DMP with stepchange - however one of my creditors virgin money is still charging me interest of £80 per month on a debt of £5000, monthly repayment is £110 so going to take forever to clear the debt...have contacted virgin and step change about the interest etc but virgin refusing to do anything about the interest.  Any help or suggestions appreciated. 

Rob5342

Make an official complaint, and then take it to the FOS if they still refuse to stop charging interest. Debtcaml has some advice on this here:

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

While you are doing this you might consider stopping paying them altogether to try and make them default the account which would stop interest.

fatbelly

You have to stop paying them. Explain why, and ask for a refund of interest paid since the dmp started. Don't make any further payments until the interest is frozen.

You can quote CONC 7.3.5 and say that the application of interest is 'making the term for the repayments unreasonably excessive;'

They may disagree so in practice you may have to wait until the put it with a DCA or sell it on.