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20k debt going up not down?

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I've just seen a post from a guy on here who was (150k in debt) now 70k in debt.

 

Something like this myself started paying through stepchange at £269 a month for just over 2 years now for 23k work of debts.

total paid to date is £2,959.00 which brings my account to £20,510.58

 

My debts are with.

 

Halifax (Credit card)

Capital one (credit card)

Barclay card (credit card)

Tesco (credit card)

Natwest (credit card)

Zopa P2P lending (Loan) (13.5k loan, 19k with interest)

 

However

I've been going through some of my old statements and a recent one today from Halifax who send them very sporadic and I noticed which I thought was stopped interest wasn't

 

so for 2 years they have been keeping the interest going at about £28 a month while my stepchange payment plan with them is about £21 a month

 

after all this time my account with them should have been £1,460

however I checked today and it stands at around £1,780

I've not actually paid anything off.

 

They aren't the only ones

Zopa had my debt at about 13k down to about 11k

now but they have been keeping the interest on

 

my debt with them stands at 14k now even though the original letter after a defaulted said the debt was 13k and never mentioned the interest.

 

Now my finance has changed I can't afford the original payments as the debt calculator on stepchange now puts me at minus £284 a month.

 

What do I do at this point?

 

Do I do what the other guy did and get letters sent off to them and what should I expect if I stop paying stepchange by DD and only offer creditors about £1 a month each?

 

Capital one is also keeping interest going.

 

after 2 years of paying and looking at all my accounts again today my debt stands at £23,657.14

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IMHO i'd be complaining to stepchange that these creditors are charging interest when in all truth you thought the idea of involving them [stepchange] mean that interest was to be stopped.

 

are all you debts still with the original creditors and what was the takeout date of each credit.

 

dx


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

 

if everyone stopped blindly paying DCA's tomorrow

the biggest financial industry in the UK, the whole DCA industry would collapse overnight.

 

 

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Actually Natwest have passed the debt to someone else but offered to forward the payments on which I need to change this with stepchange. can't remember who it was without checking (think it was westcot)

 

All debts other than the natwest one are still with the original creditor. Some accounts I can still access others I can't. What do you mean by take out date? the date I fell into debt and started payments with stepchange?

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the date you took what ever you are in debt with now...

 

wetcloth never buy debts only chased for clients.

 

dx


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

 

if everyone stopped blindly paying DCA's tomorrow

the biggest financial industry in the UK, the whole DCA industry would collapse overnight.

 

 

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Just want to correct above it was 1 year paying with stepchange not 2.

 

I took the Credit Cards at different stages over the last 5 years

 

I was trying to balance payments out with the 0% deals

ended up using them (some stupidly) thinking I could deal with it.

 

Barclay card made a mistake by not charging me enough on the min payment which was £30 at the time and informed me it was meant to be £80 a month.

Eventually wife lost her job which is why we ended up in this mess.

 

Zopa loan for 13k started July 2015

 

I started making payments to Stepchange December 2016

although looking at the account the loan started at the interest point of 19k and being coming down from that. can that be classed as adding interest still?

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I find it a bit disappointing that Stepchange have not explained the Debt Management Plan that they arranged for you or you have misunderstood how it works.

 

It should be clear to you what you have committed to and if you stick to it, then the debts will be cleared after a relevant period, without any interest having been added.

 

I suspect that original creditors have to by some legal requirement issue the statements showing the interest included within the balance, so you know the consequence of not sticking to the Debt Management Plan with Stepchange. If they did not do this and you stopped paying through Stepchange after say 2 years, then the original crediotrs would be backdating interest on the account, which would be hell of a surprise to you.

 

Suggest you phone Stepchange to see if my guess about how these things operate is correct.


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Stepchange and even on their website says that creditors don't have to stop interest although it is in their interests to do so.

 

But the amounts stepchange have are the amounts I told them when I defaulted with my creditors. stepchange never spoke to them direct. However they did request copies of statements from them from me so they had an upto date balance of what the amount was at the time (December 16)

 

It doesn't say and never has on my Halifax statement we have stopped interest while you have defaulted failure to pay to the agreed plan with stepchange will result in a years worth of interest being added onto my account or even 5 years worth of interest as my account currently shows 2025 as the finish date but this will change now due to my circumstancies now.

 

Here is what the statement says

 

Previous balance £1,729

Payment recieved £21.14

New transactions, fees and charges £27.09

Your new balance £1735.84

 

Min payment due inc missed payments £166.70

 

The only thing it says at the top of the statement is (next months estimated insterest £0.00)

 

So what is the £1,735 on my new balance? it doesn't reflect my balance on the account at the time I defualted which I have made payments since (so other than stepchange original amount I gave them my halifax account look like I owe £1,735? they are not showing the balance going down.

 

Also on the Halifax letter it says at the back is says.

 

06 November interest £27.09

 

and further down it says

 

Total amount you paid (7 Nov 2016 - 6 Nov 2017) £232.54

 

Interest charged on your credit card (7 Nov 2016 - 6 Nov 2017) £169.33

 

So as I said unless this is just for information purposes their so be it but it doesn't say that on the letter it's show my balance with them as going up not down

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You really need to speak to Stepchange about this as they will have contacted the creditors and know what the score is. I think it may be as I advised earlier. You have a DMP set up to repay the debt with no further interest to be added, but if you stopped the DMP then the interest would apply.

 

You need to ask Stepchange to confirm the exact position in writing.

 

Stepchange work with the Banks and have an agreement of sorts. Most of the Banks suggest people in debt contact Stepchange as they have a trusted relationship.

  • Confused 1

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If they registered a default then interest should have been stopped there and then. Along with any unenforceable charges


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

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I will call them on Monday, tried to call them on Friday and they were supposed to call me back this was an hour before closing but this never happened.

 

So some of my old halifax statements I've shredded but I've got one from August this year which shows I made the usual payment of £21.14 However they charged me £28.64 interest and estimated the month after interest would be £28.72.

 

The letter I have for November statetes interest at £0 for the month after hopefully like you said Stepchange can clear this up.

 

I also got a letter from Halifax (who are ringing me about 40 times a week) Number blocked on the 31/7/2017

 

The consumer credit act requires them to write to me.

 

They said 2 payments were due in July of around £44 each

 

I pay £21.14 through stepchange and made 2 payments June and july

 

They said there is an arreas notice of £46.88

 

underlined is this

 

Default sums and interest

 

You may have to pay default sums and interst in relation to the missed or partly made payments

 

It's strange as I wrote the same letters to all the companies involved to say I could no longer keep payments up and I was now with stepchange. Some were being funny "who are stepchange" even though the letters they sent regarding payments directed me to them. I'm wondering if the likes of Capital one and Halifax haven't put me into default and just kept interest going?

 

I can access both my accounts still with them will have a look. I might write to both again depending on what stepchange say on monday.

 

Also Zopa when I log onto my account shows that just over 14k needs to be paid back. However I have letter that states there was a default notice issued on the 31/05/17 and notes that I could have remedied the default which on the 19th June has expired (balance 15k) (rebate 2.9k) (amount to pay 12.1k)

 

The rebate was calculated that payment was made in full by the 26th June 17 or they shall bring proceedings against me despite me paying them through stepchange since 2016 the letter even directs me to stepchange. So now I know why the debt has risen to 14k they have put the rebate back on or interest as I see it.

 

Seems I've let it laps over the last year going to have to get ontop of these companies now from Monday.

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the date you took what ever you are in debt with now...

 

wetcloth never buy debts only chased for clients.

 

dx

 

I just dug out the Natwest statement the debt was bought by Cabot Financial (UK) it goes onto say Wescot services will continue to manage the account

 

If they registered a default then interest should have been stopped there and then. Along with any unenforceable charges

 

 

Would it be worth stopping my DD with stepchange as it seems not all my creditors have defaulted me so they don't get any payments then start up a new plan with stepchange once they have all defaulted as least interest will have stopped? I will of course need to speak with stepchange first about this.

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if your credit file is shot anyway, and you are ok with further defaults, maybe consider stopping the dmp anyway.

do a cca request to all.

then take it from there. can enter into a repayment yourself that has no interest. at least then you'll be paying off the capital. seems not much point going into a dmp still paying interest.

you could either also ask the non defaulters to do a plan without interest.


IMO

:-):rant:

 

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If cabot hold the debt, then its UE anyway. They dont chase legit debts.

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Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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if your credit file is shot anyway, and you are ok with further defaults, maybe consider stopping the dmp anyway.

do a cca request to all.

then take it from there. can enter into a repayment yourself that has no interest. at least then you'll be paying off the capital. seems not much point going into a dmp still paying interest.

you could either also ask the non defaulters to do a plan without interest.

 

Just wondering if I do a CCA request what will this confirm? as most of the debts are still with the original creditors apart from Natwest who have passed this onto Westcot so I know the debts are mine?

 

If cabot hold the debt, then its UE anyway. They dont chase legit debts.

 

What does this mean? ignore them and don't pay? or wait till they pass it onto someone more legit?

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Just wondering if I do a CCA request what will this confirm? as most of the debts are still with the original creditors apart from Natwest who have passed this onto Westcot so I know the debts are mine?

depending on the full circs of each, it may show whether or not the creditor might have an enforceable agreement shld things go all the way. if they haven't, it may help your bargaining for a low settlement, or decent repayment plan interest free. then again, it may not!

you don't have to do it, it was a thought seeing as you want to get rid of interest and were posing letting the debts default anyway.

:)


IMO

:-):rant:

 

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Not sure sending CCA requests is worth it, as they were all issued in the last 5 years. The creditor or new debt owner would not need the original CCA to enforce in court and minor issues with a CCA are unlikely to make any difference that would avoid a CCJ.

 

And Cabot have been involved in going to court or Solictors representing have.

 

The OP needs to contact Stepchange to ask that they confirm in writing the score with each debt e.g is interest been stopped or not.


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Not sure sending CCA requests is worth it, as they were all issued in the last 5 years.

 

.

ah ok, i missed that bit re all over the last 5 yrs :)


IMO

:-):rant:

 

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As it looks at the moment I have only paid back £60 in total over the last year across all.

 

I will be contacting Stepchange on Monday anyway as my circumstancies have changed and I can no longer pay the requested amount set out a year ago of £269 a month. But if it is the case and some are still charging interest then 3k has just been added back onto my account.

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I phoned Stepchange yesterday.

 

They need my income to be at least £30 to keep the DMP going which I have now done,

they also said I need to write to all the creditors again asking them to stop charges and interest as they don't have to

but it would be in their best interest as they confirmed on the phone they have all been charging interest over the last year putting my debt from £23k starting point which I took it down to 20k and it is now back to 24k

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Do you own the house you live in ? Outright or with a mortgage ? Any other property assets ?

 

What do you think about the service Stepchange have provided to date ?

 

When you originally contacted them, what was agreed exactly ?

 

Did you or Stepchange write to the creditors at the time ? Did you receive any responses from creditors about interest etc ?

 

To me, this all sounds really poor service from Stepchange, where more than a year later, your debt has grown by £4k and you really don't seem fully informed about the DMP performance. Also what other options were considered to deal with the debts ?

 

And now Stepchange suggest you write to creditors again. It is almost as if, Stepchange did virtually nothing for you, apart from take your payments and split it between the creditors. Meanwhile your debts increased with interest as no request was ever made to stop interest being added.


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Do you own the house you live in ? Outright or with a mortgage ? Any other property assets ?

 

What do you think about the service Stepchange have provided to date ?

 

When you originally contacted them, what was agreed exactly ?

Do you own the house you live in ? Outright or with a mortgagelink3.gif ? Any other property assets ?

 

I live in rented housing with no assets or savings

 

What do you think about the service Stepchange have provided to date ?

 

I've never been in debt at this scale before and it wasn't just 1 company it was many,

I felt a load of stress had been taken away from me upon contacting them as they appeared to put things into more perspective,

having taken the debt plan to an affordable level.

 

Other than first contact with them and dealing with the debts I haven't had anything else to do with them for a year just paid the £269 a month.

However I am learning that although banks and companies point you towards them for debt help which I did companies don't have to listen to them and I find at this stage I find I am having to do all the donkey work myself again contacting these companies because as a debt charity they have no powers to do anything.

 

I have been told these companies can still take me to court at anypoint for the money only by dealing with stepchange does it give me a bit more power to argue my case over my finacial situation.

 

When you originally contacted them, what was agreed exactly ?

 

We agreed a payment plan setup through incomings and outgoings,

I gave them the latest statements from all creditors at the start of the payment plan and they setup the payments across all creditors from largest to smallest debts.

 

I wrote to all creditors first as they suggested asking for a 30 day grace while I setup a payment plan with stepchange and asked if interest could be stopped.

 

I was advised that creditors will or may still contact me asking for more money or send letters out and to keep copies of these.

 

I was advised that if they get persistant I can ask them to stop or go to the finacial obudsman and report them.

 

Some of the creditors replied to my letters other didn't (halifax) as an example but I told stepchange about this.

 

I was also advised I could go bankrupt as an option

- told me that it isn't as bad as it sounds

- that baliffs wont come out and take things away just like that the minute I declare it.

 

I was advised they do a yearly review of my account and to update any changes if something happens inbetween then.

 

Did you or Stepchange write to the creditors at the time ? Did you receive any responses from creditors about interest etc ?

 

As above I wrote to all creditors before my DMP was in place to inform them of my position asking for a 30 day grace period while I sorted this out.

Some was done in writing recorded others done Via personal messages sent through my accounts with them. I also asked for interest to be stopped etc.

 

To me, this all sounds really poor service from Stepchange, where more than a year later, your debt has grown by £4k and you really don't seem fully informed about the dmplink3.gif performance. Also what other options were considered to deal with the debts ?

 

Yes you are correct having lapsed a bit on this I thought with stepchange taking over it will be dealt with through them so I've not really looked at some of the statements that have been sent through the post it wasn't till I came to updating my DMP that I realised Halifax was charging interest to my account still. Like you I thought this was just for information purposes to I looked at my other accounts I could still access and they have been doing the same.

 

The only other option stepchange suggested was either write to them individually myself and deal with it that way or go Bankrupt (which I don't want to go down that root)

 

 

And now Stepchange suggest you write to creditors again. It is almost as if, Stepchange did virtually nothing for you, apart from take your payments and split it between the creditors. Meanwhile your debts increased with interest as no request was ever made to stop interest being added.

 

After contacing them yesterday it appears they don't have any input at all with creditors other than them sending payments to them and using their name as leeway to help in financial situations.

 

This they never explained to me on the phone that I have to do all the leg work even after going to them.

 

They informed me at the start that interest doesn't have to be stopped but they usually do.

 

However a year later I find they still are and stepchange can't do anything about it other than just add that amount onto my account and tuff really just keep paying and write to them again.

 

I was advised that if they don't respond within 8 weeks to right to the financial ombudsman.

This they never explained at the start I assumed they had contacted them to setup payments by which at this point creditors would stop interest.

 

here we are the advice was "They should stop interest it's in their best interest to get the debt cleared" " but they don't have to do any of that if they don't wan't" " so write to them again recorded explaining that the interest is higher than my min payments and the debt isn't getting cleared" "once this is done and I hear from them about it inform stepchange"

 

Thats about it as the moment.

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That was very useful.

 

DMP seems a waste of time. You will pay whatever amount over years and not get anywhere. It is basically draining you of money, while they still have a large debt registered.

 

If you have no assets and bankruptcy would not affect you too much, then I think you should seek advice from someone that deals with insolvency. You have to find out whether it would affect you renting your current home, if the letting agent had an issue with this. Whoever handles your bankruptcy would ensure you could pay any eesential living costs out of earnings, before working out how much creditors should receive.

 

I think if you wrote to the Banks, I don't think you will get anywhere. I doubt that they would be bothered if you went bankrupt or not. The debt might seem large to you, but to the Banks it is very insigificant.

 

Get involvency advice from someone qualified.

 

Stop the DMP payments. Save up for bankruptcy if you are advised it is the best way forward.

 

What is for sure, is that just amending the current DMP, with no prospect of clearing the debt is a waste of time.


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agree, a long term dmp with interest is not much point if trying to repay the capital.

 

you mentioned letting things default.

if you're ok with defaults on file,

then that may be a way forward,

if the fos etc don't do anything to stop interest.

 

interest will (should) auto stop,

it will then do the dca rounds saying you x (that won't change),

and then you'll get a settlement discount at some point. (you have no property).

 

and even if you then do a repayment, there won't be any interest on it. it will all go to that x.

all depends on the full circs.

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IMO

:-):rant:

 

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I think the OP needs to carefully review the choices available by writing down pros and cons against each option.

 

Assuming that a DRO has beem ruled out, then the options appear to be.

 

DMP paying affordable amounts - a bit rubbish if debts are not reducung substantially with no interest added. Not good in terms of limitations act.

 

Bankruptcy - obviously can affect many things e.g employment, renting a house, obtaining credit, obtaining various services. Get advice

 

Stop paying anything, let them all default and see what happens - trashes your credit record but that will be damaged anyway, but defaults will make it worse. At some possible CCJ's you can't pay.

 

These are all recent debts and quite easy to gain CCJ's for. But they might not bother if you have limited funds. They will probably sell the debts to DCA's and you will be subject to much harassment over a long time. But very likely for court claims to be issued before they become statute barred.

 

You could write to each Bsnk just advising of your circumstances and ask for help. Advise them that the DMP is not making any sense and you are considering bankruptcy.


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I would like to avoid the DRO and BR of I can at the min

 

We have a car more then the value a DRO states. Nothing special it's an 07 plate Xsara Picasso with 64k milage £3,400 nearly 3 years we have had it now and it's the one thing we need. To get our daughter to nursery and to get to her parents house as her mum has dementia so it gives her dad a break taking her out. also for hospital appiontments plus her dad has his own medical problems etc.

 

We got ripped off a few years before that with a car we bought and put a couple of grand back into trying to fix it which was the start of the debts. this car has been the best thing since we bought it with no problems. plus we have mobile contracts £20 a month each we use these more than we ever use the land line they would be factored into the DRO as a debt.

 

The only additional income we have is my wife as a student gets student loans of 2.2k every 4 month other than books, car parking charges for study she helps pay towards the bills. hence the fact we have just about managed to stay floating.

 

Stepchange said because this wasn't a relaible income and used mainly for Uni and couldn't account for expenditure they took into account £250 a month of that for payment towards the bills. which puts us + £47 a month income after everything is paid out. This can go towards the DMP reducing it from £269 a month to £47 just till around September next year when wife should be working earning 26k a year. So I just need to get through the next 12 months really

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