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Freezing Interest on Credit Cards


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I am about to start paying off 2 of my largest debts after about 1 year of not paying anything off and I'm looking for some advice. I'm wanting to contact both of the credit card companies and arrange to start paying off at least £200/month each, as long as they stop charging me interest. Is this going to be a possibility and if so what would I write to them to get this to happen?

 

The 2 debts are about £4000 (Barclaycard) and £1300 (MBNA). Would I be able to talk to them on the phone to arrange this or would I have to do it all by letter? I would appreciate any help you guys could give me as I don't want to unnecessarily be paying off more debt than I need to be.

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Yes contact the creditors but please do it in writting and keep copies of all correspondence.

Also make sure your offers are accepted in writting and that the repayments are affordable and sustainable.

Make the offer conditional on the freezing of interest and charges.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

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Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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You should probably not make contact by telephone in this matter. You need a paper trail and any agreement reduced to writing in case you need to rely on it at some point.

 

MBNA have been censured by the OFT for not considering people's circumstances and refusing to look at payment arrangement plans.

 

However, looking at what you are planning on offering .. £200 per month, then I think it is highly unlikely they will freeze interest or charges :(

 

It would be great if MBNA were to accept this as you would be shot of that within 12 months.

 

I am not sure what to advise for the best really.. I will flag your thread for more advice.

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4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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I suppose you could try ''take this or get £1 a month for a 100 years'' ploy:jaw:

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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Please let us know how you get on :)

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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The Head Office addresses would be best I find addressing these matters to compliance and legal departments.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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Ok here is my example letter...

 

**************************************

Dear Sir/Madam,

 

Re Account No: XXXXXXXXXXXXXXX

 

I am writing to you to arrange a repayment plan for the current debt on this account. Due to my financial circumstances I have been unable to make any payments towards this debt for the last few months. However, my circumstances have now changed and I am willing to discuss repayment.

 

I am currently looking to pay approximately £250 per month, providing we can come to an agreement that all interest charges and other charges be stopped on the account effective immediately. This is a special offer I am willing to make, which is completely contingent on the charges being stopped. I am able to make this offer because I am currently in a financial situation where I do not need to pay board/lodgings.

 

This situation can easily be changed if I so wish it to, and if you refuse to accept this offer I will be forced to offer you a token payment of £1 a month for the life of the debt.

 

I look forward to hearing from you shortly.

 

Yours,

 

Mr. Five Alive

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Just a couple of questions: if a person can afford say £200 per month repyment to a debt, and this covers the ongoing interest and any charges, why should the lender freeze interest and charges? Secondly, if a person can afford £200 pcm repayment would a lender being asked to freeze interest or charges threatened that they'll get £1 a month (despite the person being able to afford more) not feel rightly aggrieved and take a hard line?

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pers i'd have offered nothing before getting all the statements out and looking

at reclaiming charges/ppi

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Just covering ongoing interest and charges is pointless, with those frozen the debtor has at least some chance of actually

reducing the debt.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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My point is if the repayment you're offering covers the interest etc and reduces the balance, albeit slowly, why should the creditor agree to freeze? When faced with the £1m pcm threat despite a person being able to afford more, it would be no surprise if some creditors decided to take a tough line when chasing the debt. Lots of people are only paying the min payment every month where the amount paid of the capital is pretty small and they wouldnt expect their lender to suspend charges/% etc just because it will take them years to pay back the money they had borrowed. Its worth re-stating here that freezing interest and charges is a matter for lenders discretion and in my experience they will take a commecial view about freezing combined with a regard for various lending codes etc that deal with debt collection practices, financial hardship etc. Most will cooperate if there is genuine financial problems but it could be argued that the case in this thread is not in that catagory.

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IN most cases it is of benefit to debtor and creditor, the debt is reduce more quickly than if charges are add and interest added on the charges so the debt grow despite payment being made, common sense really.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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Nick, I think you are missing the point - the OP was off work for well over a year and has now returned. Both these creditors would have continued to add interest and charges, it seems only fair that they should now reciprocate in some way.

 

It isnt as though the OP is trying to get out of paying, he just wants shot of the debt, without incurring more by way interest on interest.

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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I would disregard posts 9&18 if making a decision.

 

Pay only what you can reasonably afford, don't use direct debits, standing orders are best and don't give out debit card details.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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  • 4 weeks later...

Just an update for anyone who's interested... both MBNA and Barclaycard had sold the debt on months ago to another company, therefore all charges had stopped from that point. I'm currently paying back the agreed amount to the companies that now own the debts without any interest or charges being added on.

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did you get all the statements through?

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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