Your views and questions.

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By timcuk
#256663 Back in Jan 2005 I started a DMP with Payplan when I realised I had £80k worth of unsecured debts across about 10 creditors.

Been on the plan since then, not missed a single payment, circumstances changed and had to drop payments for a while but on the whole things have been fairly solid for over 6 years.

I was due to finish the DMP next year and managed to get a nice lump payment of £9k. According to Payplan there was just under £10k left so they started getting settlement figures.

Now it turns out that to settle today I would actually need £18k mainly due to interest and charges that Lloyds TSB are charging me.

With Lloyds, I have a credit card, 2 loans and 2 overdrafts. The loans are with their debt recovery team and they are offering reasonable settlement. The credit card and overdrafts however are racking up interest and charges because I'm told by Payplan that my monthly payment is too high and they will not treat it as a problem debt. In fact on these accounts the balance is not reducing, particularly on the credit card, it will take 10+ years to repay it.

I knew that Lloyds were charging interest and I spoke with them on many occassions to ask them to be reasonable and help me clear the debt. I also spoke with Payplan at least a year or more ago and asked for their advice, which was to stick with the DMP.

I'm so upset... I'm after some advice or just options that I could take now. These are what I have come up with:

[1] Use my £9k to pay off Lloyds so no more interest and charges accrue and continue paying off the other creditors
[2] Use my £9k to pay off the other creditors and reduce my monthly payments so that Lloyds get a much reduced monthly payment and hope that they eventually send the debt to their recovery team and freeze interest

Neither of these seem ideal to me.
By nomlas
#256683 It is outrageous that Lloyds/TSB are behaving in this way but it comes as no surprise, unfortunately. I assume you have assets? If not the solution is very easy, stop paying them anything until the interest stops.

If you have assets I would be very loathe to reward L/TSB by giving them even more money and I would greatly reduce the payments. As the Credit Card debts pre-date 2005 I would hit them with a "prove the debt letter" and request they supply you with a copy of the Credit Agreement, this at least will let them know you mean busines. If they can not produce a copy of the agreement you might have a case of the debts being viewed as unenforceable, however it is far from straightforward and you would need to swot up on all the info and come back on here. It would certainly put them on the back foot and make it more likely they pass the debts on. I would also demand a Subject Access Request and they will have to supply ALL the information they have on you, the fee for the CCA request is just £1 and the fee for the SAR is £10. They MUST supply these items by law. When you receive the SAR bundle you can work out what you have paid to L/TSB in interest and keep a detailed record if the case ever goes to court, you can then show the Judge just how unfair they have been. Submit all requests in writing, recorded delivery and keep copies of everything. If you need more info re. the above just ask.

I would also advise writing to your MP, if He/She is sympathetic a letter to L/TSB could work wonders. This Government keeps telling us they stand for fairness; L/TSB has largely been bailed out by the Taxpayer so let us see some fairness from them.

Duff`n Custard is in a situation like yours, her DMP is coming to an end and she has managed to keep the interest off almost all her debts. I am sure she will advise soon. Regards and good luck. -- nomlas
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By DuffNCustard
#256693 Having just quickly scanned you post - have Lloyd's been sending you statements?

Legistlation to amend the CCA1974 act within the last 3 years requires that creditors send you a statement atleast once a year (could be 6 months no time to check) - if hey haven't they can't apply that interest -end of :mrgreen:

I'll have a rummage though my DMP records - to find the details tonight when I get back from work
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By DuffNCustard
#256713 Mr Duff also in a DMP with Payplan and also with the dubious privilege of having Lloyds as one of his creditors is getting statements that show only how much he has paid :mrgreen: :mrgreen: they can keep a separate tab in their collections department and apply charges and interest ad nauseaum but the CAN'T CHARGE MR DUFF - he's checked it all out so bumholes to Old LLoyds they can go swivvel!!!