Please help.. DMP but banks refusing to cooperate!

joeyjojo_2

sorry its gonna be a bit long winded.....
i took out a DMP with kensington finance in november 07. my unsecured debts at that time were in the region of £16000. Kensington have been supportive and managed to get Barclaycard and Leeds building society to stop all interest and charges until my debts are paid off.
The problem i am having is with HSBC, they refuse to speak with my DM company in writing and over the phone. I have a £250 overdraft with them, a £2000 unsecured loan and a CC of £856. They are accepting payments from kensington but also refusing suspend my account (i have opened another account with lloyds tsb for my salary to go in) and are taking loan repayments from both kensington and my hsbc account (which i cancelled the direct debit in writing twice and over the phone 4 times!) which no longer has any money going in. they are charging me every month for the account going over the planned overdraft. Interest is also been charged daily!
When i tried to suspend the account the first time (in nov 07) i was -£183. I received a letter yesterday asking me to pay off the overdraft which now amounts to -£434. i have received no correspondance from them since nov 07 until now!
I telephoned them and told them i had been paying them the loan from a DMP they stated they "do not deal with outside agencies."
I asked if they did not deal with outside agencies why were they taking the payments from my debt management plan? And would the extra they had been taking come off my loan? She stated she did not know!
Is this legal?
If anybody has any legal or ways i should deal with this bank please post back and thank you for taking the time to read and listen!
Any other info needed just let me know.

fatbelly

I'm giving this a bump...

All the major banks can be a bit slow to get the message that you are not putting any more money into your current account. Once they have sent out a default notice and passed it around a few parts of the organisation, things settle down.

What they have said about not dealing with outside agencies is a contravention of OFT guidance 2.8e. There's a pdf file of it here

Finally, how much are you paying Kensington for this service?

10past6

joeyjojo wrote: »

The problem i am having is with HSBC, they refuse to speak with my DM company in writing and over the phone

Hello Joey

Welcome to the forum, 2 issues

a) Obtain a Name & FAX number for someone at HSBC, go back to Kensington, and ask them to fax over your "Letter of authority" for them to act on your behalf.

This gives Kensington permission to deal with your creditors, some DCA's / Creditors refuse to deal with DMP agencies until they have this information, for some unknown reason, they never let people know they require this information.

Next

b) Send this letter recorded delivery:

Your Address

DAC / Creditor's Address

Date

Ref A/C xxxxxxxx

On the top of your letter state very clearly in big bold letters “FORMAL COMPLAINT”

Dear Sir / Madam

I refer to the above account, held with yourself's.

I have informed your company on numerous occasions I am experiencing financial difficulties.

I am acting in a responsible manner re my current situation, by seeking the advice from XXXX, I have informed your company of this, which has fallen on deaf ears.

Due to the continued harassment I'm experiencing from your company, I have taken advice from the OFT, I am informed your company is in breach of the following guidelines:

Deceptive and / Or Unfair Methods.

2.8 Examples of unfair practices as follows:

C: Refusing to deal with appointed or authorised appointed third parties, such as, Citizens Advice Bureau, Independent Advice Centres, or Money Advisor's.

Contacting debtors directly and bypassing their appointed representatives.

I have informed your company, that (give the name of the organisation and account number of whose managing your DMP), is my authorised third party appointed representative.

If I do not receive a satisfactory reply to my complaint from your company within 7 working days, from the date of this letter, I reserve the right to refer my complaint to the OFT for adjudication.

HHH_2

I would imagine your DMP is with a fee paying company so please contact CCCS or payplan and get youself a free DMP where everthing you apy goes towards your debt

joeyjojo_2

Thank you so muh. i had no idea that dmp were available free until i came on this wonderful site/forum. I pay my DMP £37.10 a month. i have contacted ccs and they are in the process of taking over from the money grabbing company!
i have obtained fax numbers for the forementioned bank and ccs have these and are going to fax over a soa today.
Tank you again for all your wonderful advice, i was at the end of my tether and reading through the posts on here i know that there are alot of people on here who care and are so so supportive x