Sechiari,Calrk & Mitchell and Payplan

[mack187]

Hello All

My situation is that I have been in a dmp with payplan for two months, one of my creditors is Lloyds TSB who I owe about £9000 in the form of a loan, a credit card and overdraft, everything was fine and I was making my payments and they had been accepted, but now I have received a letter from Lloyds Saying they never heard from payplan and no agreement had been reached(im not so worried about this as I don’t believe them). However I received a separate letter today from Sechiari ,Clark & Mitchell informing me of impending legal action with regards to £300 of arrears on my loan, I told Lloyds TSb I couldn’t afford to repay it and asked for it to be included in my payplan agreement, they said I had two option 1:- Pay back the amount in full(which I cant do at present 2:- Or take out a new "refinance" loan with Lloyds, the 2nd option made me hugely angry because I do not want to borrow more money, Since I refused both option they informed me I would be hearing from their solicitors which I now have, What should I do next?? Should I sit tight, I feel a judge would take a pretty dim view of them threatening me with legal action since they know my circumstances and know I cant afford to pay the arrears, Should I contact the solicitors to make them aware of the situation? I have contacted Payplan but they are taking a while to get back to me, I’m just a bit worried in the mean time.

It seems ludicrous to take someone to court who is genuinely trying to sort out his finances

Any advice will be greatly received

Regards

[dwaindibbley]

I have had exactly the same thing, PayPlan have been paying in to lloyds a % of my monthly income towards my overdraft, credit cards, and loans with them, last week i also got a letter saying no agreement or payments made. It turns out that lloyds had insisted that all the payment go into the overdraft account from payplan but they then simply swollowed the cash up in interest and did not distrbute it at all so all the money they have been pocketing as interest rather than paying accross the individual debts.

 

I contacted Payplan and told them to contact Lloyds but also to stop paying them into the overdraft as that way they can't steal the money! i am considering bringing an action for recovery of the money they have not allocated as it was not for them to use as they wanted it was to be paid to the individual accounts.

 

Also apparently lloyds won't stop the interest on a current account until they have a judgement where as the loans and credit cards all have interest stopped, so them insisting on the payments into the overdraft is a way of stealing the money in my view.

 

if you find anything out let me know please

 

Robert