Im currently in a DMP with payplan, been with them since April, all of my creditors have agreed to my monthly payments and have frozen all interest except for HSBC who are my largest creditor and between the loan, overdraft and credit card makes up around 50% of my debt. They have been the worst creditor i have had, phoning 3 times a day every day, stating that they never received any letters from payplan, even though i asked payplan to send me the letters and i handed them into my local branch and they still said they didn’t receive them!
After putting in a complaint i finally had a letter from them 2 weeks ago stating they have rejected my offer, surprisingly after i received the letter of rejection all phone calls stopped! Yesterday i received a letter from them stating that they will accept my monthly repayment offer on the condition that I take out a “managed loan” to consolidate the credit card, loan and bank overdraft. They will however still charge interest but at a low rate of 1.5% per annum. There would be no set up or arrangement fee or no early settlement fee and I could pay in extra per month to pay it of sooner if I wish to and reduce the over all interest charged. On paper this does seem like a fair offer. I have e mailed the details to payplan to ask for their opinion, but as of yet they have not got back to me (although I only e mailed them this morning so im not expecting a reply until tomorrow) I was wondering what you guys think about this offer?
Personally, I wouldn't touch it. They tried to get us to take out a managed loan when we were in a DMP.
I am puzzled as to how they can say that they will accept your payment if you take out the loan. It should be one or the other,not both.
The choice is yours, but over how long are you expected to pay this loan?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for the reply, i have not got the details at hand but i worked it out yesterday that it would take around 4 months longer to pay the debt back with this loan with the repayments they accepted, compared to the length of time it would take to pay it back if they froze the interest rate for the duration of the dmp
HSBC were a nightmare with us and they tried everything to get us to take the loan, including sending the forms out for us to sign when we hadn't asked for them, and then phoning to find out why we hadn't sent them back.
If you are considering this, read the small print to make sure that they cannot up the interest payments at a later date, and also what happens if for some reason you cannot make a payment.
Payplan will get back to you, be guided as well by what they say.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
That’s what they have done to us, we had a letter yesterday with the forms to sign and send back, we did not ask for the loan or they did not ask us whether we would consider a loan, when they rejected the offer they have not phoned us since (from 3 phone calls every single day since April to no phone calls for the last two weeks), i suspect that they were planning this when they rejected the offer that’s why i think we have not had any further phone calls, they reject the offer to make us worry about what action they are going to take, then send you this to make you think its a life line. As regards to the interest rate i will look that up, but i do know that the payments are fixed for the length of the loan.
I would be very wary - there has to be a catch somewhere.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
