Excessive interest while in DMP

[jaydeebee]

Hi there

 

We are in a DMP with Payplan and are really trying our best to get on top of things. However, I have just checked our Lloyds bank statement to see what the balance now is and see that they are charging an Overdraft fee and Overdraft interest which is over and above what we are paying through the DMP. The balance is therefore more than it was when we started. I suppose they have a right to make these charges but is it worth my while writing to Lloyds and asking them to stop. If so, does anyone have any ideas of what to say.

 

Many thanks

[Bazooka Boo]

It is pointless paying anything more than £1 a month to lloyds, they are cash cowing you here and you will be paying them for years to come.

 

Inform PP to drop them from the DMP, then set up a SO to pay them £1 a month whilst you are reclaiming ALL of their fees charges and interest.

 

If any of the other creditors in your DMP are still charging fees and interest then PP aren't really helping you.

[jaydeebee]

Thanks for this. How would I go about reclaiming the charges and fees ? Would I write to them explaining the situation ? How far back would I go, would it be back to when the DMP started.

 

Sorry, also, do I write to tell them that I will be paying a £1 or do I just do it.

 

Cheers

[Guest]

has loyds defaulted you? if so, you should definitely not be paying any further interest/charges. payplan should've ensured that.

even if they haven't defaulted, it seems then as if you would be on an arrangement/variation re financial difficulties in which case interest should be stopped or at least reduced. again, paypln should've ensured that.

Edited October 3, 2013 by Ford

[jaydeebee]

I'll speak to Payplan about it. Having said that I've spoken to them about interest being applied by other creditors before. All they say is that they can't guarantee that creditors want ! To be honest they are pretty hopeless.

[Guest]

have you been defaulted?

 

as you see, there's not much point being in a long term 'plan' that is just increasing the balance. and, that should not be the point of such plans anyway ie they should be to reduce the balance.

Edited October 3, 2013 by Ford

[Bazooka Boo]

When you speak to PP, don't ask, tell them that any creditor that is applying charges and interest needs to be dropped from your DMP, if they can't or won't do this, then tell them you'll sack them and do your own DMP.

There is absolutely no point in entertaining any creditor with the help of PP or not, if they are continuing to add charges and interest.

[jaydeebee]

Cheers all, I'll do that and thanks for the advice. I don't know if you can help with this as well. I've trawled through different threads and got some information but I'm not sure. On our DMP we have a couple of credit cards that have been sold on (some 2 or 3 times). I have read that sometimes this may not be legit as the CCA paperwork may be incomplete. Is this something that is worth chasing up. I know there is a template letter on here concerning CCA. Do you think it's worth sending to all Credit Card accounts that have been sold on ? Sorry to ask all these questions. We are going though a terrible time financially at the moment and this forum has been a absolute godsend for getting some great advice. Cheers all.

[Bazooka Boo]

Morning!

 

Depending on the age of the CC, ie. if they were taken out pre 2007 then yes it is definitely worth CCA'ing them.

 

I know PP do their best, but they don't always ask for the right info/docs/questions when dealing with creditiors.

 

If they have been repeatedly sold on, then there is every chance that what they are collecting is simply charges an interest that have been added to the accounts, which of course could be reclaimed.

 

So in essence, if the CC were taken out pre 2007 then yes send them the CCA request.

However, I'm not 100% sure if PP would approve?? Which is why it 'might' be better to drop them, esp if they are happy for you to pay creditors when they are still adding % and charges..

 

http://www.consumeractiongroup.co.uk/forum/content.php?414-CCA-request-letter.

[jaydeebee]

Thanks BB. I'll keep you posted with the results.

[citizenB]

You could make an attempt to reclaim the charges due to hardship. At the very least you should be pointing out that there is simply no point in making a reduced payment arrangement only to see the debt increase !!

[jaydeebee]

Thanks Citizen! I've just finished the letter to Lloyds. How long should I give them to respond ?