End of Payment Plan with Payplan

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Rmcdowell

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Post by Rmcdowell » Sun May 08, 2011 7:14 pm
Hi there,

Me and my wife have been paying a DMP with payplan for over 7 years and have shifted over £40k debt.

Our Estimated end of plan was May 2011 but upon checking balances ourselves with our creditors have found there to be an additional £6000 left to pay.

Researching these amounts have indicated that the £6000 is purely interest with 2 Lloyds loans and 1 Lloyds current acct overdraught.

Our other 2 creditors are at Zero as of this months (what was supposed to be) final payment i.e. zero interest.

Our Payplan Financial advisor is due to have a meeting with our creditors in 10 days time to negociate interest, but in the meantime after chatting with him over the phone and telling him the creditor balances, our payplan status page has been updated with the £6000 and estimated completion date set back to June 2012.

Obviously my wife is very upset over all this and was hoping to be debt free by our May 2011 completion date and we now face an additional 13 months payments.

Im not knocking payplan who have provided a Free great service and I can appreciate all the "We can not guarantee interest" etc.

Is there anything we should be doing? letters to creditors etc etc or just leave for our Financial Manager to hopefully negociate interest drop on the amounts?

In our experience Lloyds seam to be the very worst of creditors with constant letters and harassing phone calls so personally, im not holding my breath with any interest being dropped.

Many thanks for reading my essay hehe
and ta in advance for any help.
 
 

Shining

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Post by Shining » Sun May 08, 2011 8:01 pm
Hi and welcome to the forum, I can imagine the disappointment your wife is feeling in respect of the interest, me personally I'd leave it to the financial manager to deal with in the first instance and see what comes of the meeting with your creditors in ten days to see if maybe this can be reduced or cleared? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Sun May 08, 2011 9:16 pm
Welcome from me as well.

So sorry that you aren't as close to the end as you hoped. However, there is never a guarantee that creditors will stop interest and charges.

I'd let Payplan get on and sort it out - they are a good company and hopefully they can get you sorted out.
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.
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MelanieGiles

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Post by MelanieGiles » Sun May 08, 2011 11:01 pm
A shame that the negotiations about interest were not carried out at the start of your DMP rather than at the end. Payplan are funded by creditors, so hopefully they will be able to do a good job for you in this regard.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Michael Peoples

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Post by Michael Peoples » Mon May 09, 2011 10:10 am
You say Payplan provided a great 'Free' service but unfortunately it seems to be costing you in other ways. A feecharging company may have been able to get the interest stopped at the beginning and you would then know for sure what date the DMP is ending.

I also wonder whether the IVA option was ever discussed with you and were there reasons why you did not try this option. You have been in a DMP for over 7 years with probably another year to go and then who knows maybe there will be another pile of interest added at this time. At least an IVA would have given you an end date and legally frozen interest.

Hopefully Payplan can get this sorted out because the 'Free' service is one of the things that persuade people to go there. The banks fund them but also recommend them to people in difficulty so hopefully you can get the same service as you would get from a fee charging company.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

LizzyPayplan

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Post by LizzyPayplan » Mon May 09, 2011 9:50 pm
I just wanted to try and put Payplans side of things across. We do try to negotiate with each and every creditor at the beginning of the arrangement, asking them to freeze all interest and charges. We also do this throughout the arrangement as and when we are informed of creditors applying these charges. However sometimes creditors stop writing and updating balances which means we can't act on something we don't know about.
Unfortunately a number of creditors, regardless, still apply interest and charges and there is nothing that we can do about that. As a free to client service we try just as hard as any other company to get you out of debt as quick as possible as no one can put any guarantee on a creditor stoppin the charges.
Your case officer will now be talking with Lloyds to try and come to some agreement, so sit tight and they will do all the work for you.
Now managed by Jane Clack - Payplan Company Representative

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Kelly O

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Post by Kelly O » Fri Mar 30, 2012 10:20 am
Hi Rmcdowell anmd welcome to the forum

Unfortunatley Lloyds can be difficult with freezing interest in a DMP but when the account is passed onto their consumer debt recoevery department they do freeze interest and charges.

If a payment is late for whatever reason eg a bank holiday the arrangement can fall out and the DMC will need to get it reset.

If the Debt management company carries out 6monthly reviews and is in regular contact with the creditor they should know if interest is accuring and take action to renegotiate with the creditor.

Maybe Payplan can get Lloyds to agree to wipe off the interest for you

All the best for a good outcome
Regards Kelly Osadare Debt Advice Manager at www.pjgrecovery.com (host to www.melaniegiles.com.)

PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
 
 

Shining

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Post by Shining » Fri Mar 30, 2012 10:28 am
Kelly, hopefully the OP got sorted as it was a post from May 2011, we didn't hear back from him/her so unsure unless they posted under a different username. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Fri Mar 30, 2012 10:35 am
The only reason this surfaced again was because of a spam poster and even though the post was deleted, for some reason it remained in the list.
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
 
 

TigerTiger

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Post by TigerTiger » Thu May 17, 2012 1:12 pm
Since Payplan will have received thousands in collection fees from this customers creditors , the least they could do is follow the OFT Guidelines and keep the customer informed along the way. He might then, of course, have taken his business elsewhere.To say that they didn't know interest was being added because the creditor stopped writing is a feeble excuse for breaking the Guidelines - don't they have any phones at Payplan ?
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