A question about Interest

ginja_ninja_2

When first writing to various creditors to let them know we were struggling, we also asked that the interest be frozen. In that time, the debts have been passed to various collection agencies and the amounts have all continued to rise, apart from 2 credit cards.

What is the law as far as interest is concerned, can these companies keep on charging interest and making admin charges over a 2 year period even though I have stated that we can't afford to pay? They all accepted payment of anything between £2 and £10 each, but I am just writing to them all again to query the huge increase in the amounts outstanding from when I originally contacted them.

Thank you

mm2000

I think I'm right in thinking they do not have to cease interest or any charges they add to a debt. But under the Bankers Code of Practice they are expected to act sympathetically and this can include interest charges etc.
How much are the debts for. If each were under £5,000 then if it came to ccj's the court would be unlikely to award them any interest on the debt. You can point this out to them and tell them you will cease payments and they can take you to court if they don't cease adding charges.
Are you with CCCS, they may be able to negotiate on your behalf.