DMP- Should my credit card account be closed?

SleeptokenGirl

Hi,
We have been on a DMP for 8 years now (almost done), about 4 years ago my husband added his credit card to it. For the last 4 years we have just paid it and forgotten about it, it was only recently when i went through the lenders to pay some of them off in full that i realised that not only are we being charged interest on his card, but it is still active! He could spend the money on it right now if he wanted to. I was under the impression that once debts enter a DMP they are closed. Every other credit card we had on it was immediately closed down and the interest was frozen.
I have had confirmation today from my Debt Management company that the credit card issuer did actually agree to freeze the interest, but that never happened. I am currently in contact with them and the credit card company to get this resolved, but the company are digging their heels in and taking ages to even send me backdated statements. Can anyone tell me if this account should have been closed from the moment it was added or is it different for different companies.

Grumpelstiltskin

Who is running your DMP?

Is it a charity or are you paying a company

stu12345_2

even in a dmp the credit card company, bank loan, store card etc sends you statements every 6 months in general .

then you can see your payments, any interest and the balance decreasing .

the dmp company doesn't actually know the balances  dropping etc, they estimate them.
 yes you need written confirmation that the interest was stopped from the dmp manager as your defence

but remember credit card companies are not obliged to stop interest and charges until account defaults 

in a dmp, ( or even outside a dmp)you should have got warning letters from the credit card company that the monthly payments are too low and not at the minimum. then it would default , as you have breached the terms and conditions of the account.

my wife has one card that inside a dmp, that is still showing as active, nearly 2 years later, it never defaulted, but interest was stopped and she cut the card up.( she has finally stopped paying ,, left the dmp company , now awaiting the default)

did you ever get a letter from credit card company to say your account is closed and you can't use your card

I think the monthly amount she made in her dmp was actually close to the minimum required, low balance , just over £1300 ,thus it was never defaulted

EssexHebridean

As a rule the process that leads to interest stopping is getting a default, and what leads to THAT is stopping making payments, so if your husband continued to make any payments to the card and then added it straight to the DMP the default wouldn't have happened. What does his credit file have to say about it? Does it by any chance show the card with an Arrangement to Pay marker against it?

Also wanted to say well done on a long haul DMP and being nearly finished with it - that's fantastic to hear! 

SleeptokenGirl

we pay a company, wish we had gone with a charity, because out of the monthly payments we paid between £40-£70 per month, at least 25% of the monthly payment is fees. Ive asked him to check his credit score, i cant actually remember if he defaulted, but hopefully the credit score will tell us.
Thanks for the replies

SleeptokenGirl

there is no arrangement to pay marker on his score, but he did miss several payments in 2020 and 2021, so i would assume he defaulted because of that.

stu12345_2

SleeptokenGirl said:

there is no arrangement to pay marker on his score, but he did miss several payments in 2020 and 2021, so i would assume he defaulted because of that.

in my credit score, it either shows default or active on live accounts

SleeptokenGirl

It says it active, which it shouldnt be.

stu12345_2

SleeptokenGirl said:

It says it active, which it shouldnt be.

did you receive a default notice letter from the credit card company 

sourcrates

SleeptokenGirl said:

It says it active, which it shouldnt be.

I would ditch this DMP company now, its just costing you money for no good reason.

This is the kind of thing that happens with these leaches, all they want is their 25%, they have no interest in helping you at all.

Cancel them now and do it yourself for no fee whatsoever.

SleeptokenGirl

well we only have a little debt left with them, and the majority of whats left is this credit card, which in all honestly i think may be written off because according to the DMP company the CC company shouldn't of been charging us interest at all. The have documentation from the company themselves when we started the DMP that the interest should have been frozen, so we have 4 years of interest to possibly come back now, but we shall see.