- Sat Sep 06, 2008 9:51 am
That's one of the disadvantages of a DMP - it is totally voluntary and cerditors can continue charging interest.
Being rather wet behind the ears when I started my DMP I foolishly thought that the FSA guidelines and codes of conduct that they are all supposed to follow - like treating folks in financial difficulties sympathetically actually have some weight. Well I learned my lesson the hard way - my experience is that they can do what they dam well like and they do.
That said the creditors with whom I have personal loans accepted my DMP eventually and didn't go for CCJS, and the others with whom I have credit card debts did all freeze my interest - they are not adding any charges to my account at all. With the excepion of MBNA who continue to apply interest and Halifax who stopped interest for nearly a year and are now charging it.
EGG and CAHOOT were I have to say absolutely brilliant and after the initial palaver told me that they would freeze interest until I had cleared my debt.
The other 2 massaged the figures so that the minimum amount I pay each month puts the account 'OK' and as this amount covers interest and a bit of principle I don't hear a peep out of them. The CCCS have sent them umpteen 'freeze the interest' request letters - I think they must be used for bog paper when they get them
None of them has ever confirmed in writing that they will freeze interest.
Some of them have confirmed in writing acceptance of my offer of payment - but have stipulated a time period (all have renewed though), others have not
All of them are accepting the money though.
Then it started to worry me what might happen at the end of my DMP in 3 years time - might the creditors decide to lump me with a massive interest hit - so I called the CCCS in a flap - they told me that they obtain letters from the creditors that the debt is fully paid and all is hunky-dory. They also assured me that they would handle the negotiations if any were necessary.
I just keep praying that the new legislation that will allow a DMP to be imposed as a legally binding agreement (which also includes interest freezing or other 'deals'), will be implemented within the next 3 years to cover me.
"Sometimes my perception of my own brilliance is only surpassed by its reality"