Debt Management agreements & interest charges.

[obewan]

Having arranged my own debt management agreement with all my creditors, one, Bank of Scotland insists on still charging interest - which effectivly means the debt is increasing.

 

Should I withold payments so they instruct a debt collection company ( where another arrangement can be made ) or await a summons & make an offer to pay via the court.

 

Any ideas ?

[loobyloo85]

As you have made your own informal arrangement with your creditors, the creditors are not guaranteed to freeze all interest and charges. Therefore I understand your concern about the debt increasing, however, you can apply to get charges frozen but not guaranteed as it isnt legally binding.

Have you considered entering into a debt management plan with a company who could apply to have interest and charges frozen on all accounts?

[diamondgirl]

Sadly even debt management companies can't guarantee charges in interest will be frozen it's happend with my accounts I am still paying interest on one of them. It's still up to the individual creditors whether they stop the charges or not.

 

DG

[PGH7447]

what is the debt?

[obewan]

As you have made your own informal arrangement with your creditors, the creditors are not guaranteed to freeze all interest and charges. Therefore I understand your concern about the debt increasing, however, you can apply to get charges frozen but not guaranteed as it isnt legally binding.

Have you considered entering into a debt management plan with a company who could apply to have interest and charges frozen on all accounts?

 

 

Yes, payplan couldn't help as a large percentage are already with debt management companies & they cannot get them to pay them !! So won't take it on & reccomended I do it myself, which I have done very successfully. Other compainies charge say £ 50 monthly which would reduce payments to a very small amount & not worthwhile.

[obewan]

Sadly even debt management companies can't guarantee charges in interest will be frozen it's happend with my accounts I am still paying interest on one of them. It's still up to the individual creditors whether they stop the charges or not.

 

DG

 

Understand, that's why I think it may be best to force the issue & get them to trasfer the debt or issue a summons - the court at worst will likely accept the same figure.

[obewan]

what is the debt?

 

 

A car loan.

[PGH7447]

so have you send them a cca request for the loan agreement yet?

[obewan]

so have you send them a cca request for the loan agreement yet?

 

 

Have the agreement - taken out after 04/07 & enforceable, but fortunatly not secured on vehicle.

[PGH7447]

you have the agreement, do they?

[obewan]

you have the agreement, do they?

 

 

Yes

[Highlander363]

I have a similar problem, I have been fighting with Barclaycard for about two years now, I've written them, called them, made a formal complaint and even taken it to the Ombudsman who although sympathetic said they could not force the company to freeze interest (currently charged at 6.9%). I am in a debt management plan with PayPlan who say that I would have to make my own decision regarding Barclaycard and also stating the following "a CCJ does not mean that the creditor has to freeze the interest. It simply makes the repayments legal". The question is this - If I cease payments to Barclaycard they will be forced to do something, either transfer the debt to a debt recovery company or take action in the county court.What I would like to know is this - If a CCJ is awarded against me, will interest and charges be frozen? I can't seem to find a definitive answer to this question on any website including Court Service and Direct.gov!Does anyone know the answer?

[brokebutnotbeatn]

write to the CEO of Barclays saying stress is making you ill etc etc. Say other creditors have reduced to zero interest to give you a fighting chance of paying the debt of etc I don't believe Barclays are particularly difficult to get them to zero and I would challenge PayPlan not trying hard enough. I have several cards and a loan - all at zero which means there is light at the end of the debt tunnel albeit in a few years time.

[bake]

hi, yes if it were to go to court, intrest would stop at that point, that why they like it this way you are allways paying, my advice would be if you can not pay dont pay and let them take you to court and pay whot you can aford, you will pay the balence owing that is a compleat c/r , allso believ me they are not botherd about you or your household when trying to collect , reameber they will most likely give to colecsion agents first, ignore the **** bags they dont have any power , take my word for it they will try every thing to get you to pay but if you cant dont , and dont let any bailiff **** into your house, believe me i was part of the anti poll tax movement so there not much that i dont no about these **** that cant get a proper job on the planet, regards