DMP & Mutual Support Thread - Part 11

Puzzcat · 6 April 2016 at 4:44PM

ploppy57 wrote: »

Trying to get BC to stop interest as they are the only ones still charging it :mad:and now that we have had to reduce payments, we will never get it paid with them as their interest is more than the payments now!. :mad:

Lady at SC said that there is a bit in the Lending code about them having to treat people fairly when in financial difficulties etc. Can anyone point me in the direction of this great piece of writing?

Thanks again guys.

Hi,

You can google 'lending code' and that should bring up the info you are after... I have a template I sent that you may be able to use or adapt..

Date

Dear Sir/Madam

Re: COMPLAINT – CREDITOR NAME AND ACCOUNT NUMBER
As you are aware, I am in a DMP with Stepchange, reference number ******. The majority of my other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist me in my present financial difficulties, and can only serve to delay my efforts to repay this debt.

I have already paid considerable sums in interest to my account. If interest charges continue, the monthly installments I am paying will only just cover that interest. Also, the cooperation of my other creditors who have agreed to freeze interest already would be put at risk.

I am aware that you subscribe to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I make would actually reduce the balance outstanding to your company within a reasonable time period.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately.
If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

Unfortunately BC are notorious for being less than helpful..!

Puzz. x

Puzzcat · 6 April 2016 at 4:46PM

SuperMario3 wrote: »

Hi guys, first time poster but long time reader! I'm currently in debt with credit cards (4) and 1 loan totaling over £30k. After everything is paid off per month, i'm left with around £200 to live on. I've recently heard of StepChange and have applied. I just wonder if people can talk me through what I am to expect if I go the StepChange route. I've always made payments and have never missed anything so that has me a little worried. Also, I live with family. Will my credit rating changes have any affect to them?

Hi,

Best advice I can give is to make a cuppa and start reading this thread and the others before it. I read 3 before starting my dmp and was then fully armed with what to expect. Good luck.

Puzz

System · 6 April 2016 at 4:49PM

Puzzcat wrote: »

Hi,

You can google 'lending code' and that should bring up the info you are after... I have a template I sent that you may be able to use or adapt..

Date

Dear Sir/Madam

Re: COMPLAINT – CREDITOR NAME AND ACCOUNT NUMBER
As you are aware, I am in a DMP with Stepchange, reference number ******. The majority of my other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist me in my present financial difficulties, and can only serve to delay my efforts to repay this debt.

I have already paid considerable sums in interest to my account. If interest charges continue, the monthly installments I am paying will only just cover that interest. Also, the cooperation of my other creditors who have agreed to freeze interest already would be put at risk.

I am aware that you subscribe to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I make would actually reduce the balance outstanding to your company within a reasonable time period.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately.
If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

Unfortunately BC are notorious for being less than helpful..!

Puzz. x

Thanks Puzz. I know BC are the worst. All our others are already defaulted, or on the way to default, which I think is good as we have only been on DMP for 13 months. BC did reduce the interest, but not a lot and as we had to drop to token payments for 3 months after I lost my job, we actually now owe BC more than we did 3 months ago! I will write to them again and see how we get on. We have done a new I&E, so they can see that we are struggling at the moment.

phoenixx · 6 April 2016 at 6:28PM

ploppy57 wrote: »

Trying to get BC to stop interest as they are the only ones still charging it :mad:and now that we have had to reduce payments, we will never get it paid with them as their interest is more than the payments now!. :mad:

Lady at SC said that there is a bit in the Lending code about them having to treat people fairly when in financial difficulties etc. Can anyone point me in the direction of this great piece of writing?

Thanks again guys.

Hi ploppy57
We have tried everything with BC and are now ignoring them. They have charged us interest since we started DMP in August 2011. We have written, complained and, when we left SC and went self managed, paid token payments - no joy. Once we received a compensation payment after complaining but it was back to applying various rates of interest soon after. :mad: Recently we have followed the advice of sourcrates and paid them nothing, ignored letters and phone calls. I hasten to add, I would not take this action with other creditors - just driven to this by their unyielding attitude as a company. Touch wood interest appears to be frozen on the accounts and there are some changes to Noddle (no default yet though). We are on a 'wait and see now'. Am putting aside what I would have paid them to pay full and final when we have enough saved. Hope you have some success in your dealings with them. Will keep the thread posted as to any developments.
Phoenixx x

Redstone2017 · 6 April 2016 at 6:36PM

Hello everyone
I wonder if anyone could help . We have been in a debt management since 2009 and never missed a payment . We received a letter dated on 18.3.2016 yesterday 1.4.2016 after they had taken a payment on 24th March.
They basically say that its no longer viable for them to carry on with debt management. We have never been completely satisfied with the service , and basically feel let down and stressed with the situation we are now facing. We have to contact each creditor and deal them. We were told we would be debt free in 11 years . Is there anywhere we can go and say we have been mis-sold this debt management , nearly £5000 was added in interest when we were told that our debt £23,300 would be froze . The statements never made sense and if you call them they blind you with figures and confuse you. We paid £176 A month and the first year when they were dealing with creditors we were told that it would be banked and they would use this to negotiate with them near the end of the plan, now they are saying it was a fee, i would really appreciate any help , thank you

sourcrates · 6 April 2016 at 7:20PM

Redstone2017 wrote: »

Hello everyone
I wonder if anyone could help . We have been in a debt management since 2009 and never missed a payment . We received a letter dated on 18.3.2016 yesterday 1.4.2016 after they had taken a payment on 24th March.
They basically say that its no longer viable for them to carry on with debt management. We have never been completely satisfied with the service , and basically feel let down and stressed with the situation we are now facing. We have to contact each creditor and deal them. We were told we would be debt free in 11 years . Is there anywhere we can go and say we have been mis-sold this debt management , nearly £5000 was added in interest when we were told that our debt £23,300 would be froze . The statements never made sense and if you call them they blind you with figures and confuse you. We paid £176 A month and the first year when they were dealing with creditors we were told that it would be banked and they would use this to negotiate with them near the end of the plan, now they are saying it was a fee, i would really appreciate any help , thank you

Hi,

Unfortunately your story is a familiar one, compass debt councilers went bust a few weeks ago, they ran a similar scheme, looks like all there customers have lost there money, in most cases thousands of pounds.

Your DMC dumping you, is actually a blessing in disguise, really wish you'd come here for advise easier, we could of saved you thousands in fees !!

Your best bet is to call stepchange, a free debt charity, and get advice from them.

As regards your current company, you could bang in a written complaint about the abysmal service, but it sounds to me like there on the brink of going bust themselves, but may be worth a try !!

CornishMaid · 7 April 2016 at 12:21AM

Hi, I've not posted here for a long while but I will never forget the support and advice I got on this thread. It helped me set up and manage my own DMP, which has now finished - my signature tells the story! I just wanted to say to anyone in the early stages of addressing their debts - you can do it! No matter how hard it seems right now, it can and it does get better.

Ellieseleven · 7 April 2016 at 8:37AM

CornishMaid wrote: »

Hi, I've not posted here for a long while but I will never forget the support and advice I got on this thread. It helped me set up and manage my own DMP, which has now finished - my signature tells the story! I just wanted to say to anyone in the early stages of addressing their debts - you can do it! No matter how hard it seems right now, it can and it does get better.

Well Done on becoming debt-free CornishMaid!

Be sure to pop over to the debt-free roll of honour to claim your badge...link below;)

http://forums.moneysavingexpert.com/showthread.php?t=291326

Ellie x

Time_to_face_the_music · 7 April 2016 at 10:59AM

CornishMaid wrote: »

Hi, I've not posted here for a long while but I will never forget the support and advice I got on this thread. It helped me set up and manage my own DMP, which has now finished - my signature tells the story! I just wanted to say to anyone in the early stages of addressing their debts - you can do it! No matter how hard it seems right now, it can and it does get better.

Congratulations and very well done CornishMaid :j:j:j

Your story echoes mine and I really couldn't have done it without the help, advice and above all support from this thread, for which I am eternally grateful :T

Am looking forward to seeing you wearing your debt free badge soon

TTFTM x

Bouncybubbles · 7 April 2016 at 12:11PM

How long does it take to hear from creditors re: acceptance/decline of DMP? I have heard from both hitachi and co-op both of whom I have two debts with (4 out of 6 in total) neither said accepted or declined but they acknowledged that a plan was being set up following the letter I sent them informing them of the same. My other two creditors are Barclaycard and Argos card. Just to add I haven't received any threatening letters/ default apart from one of the hitachi finance loans which was around 3 weeks ago.

DMP & Mutual Support Thread - Part 11

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