AA Credit Card - Interest Freeze For One Year Only

Fairycake_2

I have had three letters from the AA Credit Card now (outstanding balance of just over £2k) saying that I am in arrears and that late payment charges are being applied to the account. Since August 2006 I have had a payment plan in place with Payplan and all has gone smoothly until now.

The conversation I have just had with the AA was basically can you get someone to pay the debt off for you, if not tough. I said that as I could only afford to pay £33 a month then I would never clear the debt as the interest and late payments would just keep driving the amount up and she said that their terms and conditions were that you only ever got one year with interest and after that you should be able to pay what they ask.

I cannot get an IVA as my debt will be paid off within 5 years so I don't know what else to do to stop this.

Payplan say not to worry but the letters and phone calls are putting pressure on my health and also on my marriage.

Anyone else been in this situation with the AA or offer any advice?

Thanks in advance.

Snaggles

Hiya, unfortunately they are not obliged to freeze the interest at all, but I understand it's frustrating if they have been doing so for a year, and then have suddenly said they wont.

I would carry on taking Payplan's advice, as they do have your best interests at heart, but you can send a letter to your creditors to ask them not to contact you by phone (I doubt you can stop the letters, but it's easier to stay calm reading a letter than it is when someone is ringing you several times a day).

I will find the template for you and be back with it in a minute.

Snaggles

Dear Mr Horrible DCA

I am writing to express my serious concerns regarding the telephone calls that I have received from your company.

I am now formally requesting that all further correspondence be made in writing only.

I demand that these phone calls stop immediately. I am familiar with the terms of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1970 and I believe your harassment places you in breach of these acts.

If you continue to call, you will also be in breach of the Wireless Telegraphy Act (1949) and, as such, I will report you to both Trading Standards and The Office of Fair Trading.

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

You will be deemed to have been served notice of my request and I will deem it served by (FULL DATE), I am advising you that any calls received after this date will be recorded with the intention of them being used as evidence.


Yours faithfully

Fairycake_2

Thanks so much for this. I actually have my friend who is a lawyer looking at options for me to! Just want them to be fair!

debrag

You should talk to payplan, do a review of your budget whether it changes or not & payplan will advise your creditors. I started mine in March 2006 & 2 creditors are charging me, some have stopped charging from the beginning some only recently.