The creditors have not frozen the interest

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caz.123

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Post by caz.123 » Tue Sep 21, 2010 11:57 am
The creditors have not frozen the interest on my debt. Is this the correct procedure or should the interest be waived?
 
 

kallis3

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Post by kallis3 » Tue Sep 21, 2010 11:59 am
Hi,

Are you in an IVA or a debt management plan? If the former then interest has to be frozen. If the latter then the creditors don't have to freeze it.
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Goosed

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Post by Goosed » Tue Sep 21, 2010 12:02 pm
The same is happening to me. Nearly all my creditors are still sending statements with interest and default charges. I'be sent the statements to my case administrator.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".

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caz.123

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Post by caz.123 » Tue Sep 21, 2010 12:32 pm
i am with a debt management plan and i have just found out barclaycard have never frozen the interest or cancelled ppi
 
 

Broke of London

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Post by Broke of London » Tue Sep 21, 2010 12:39 pm
I have a vague recollection that until the iva is completed we still owe the full debt plus fees and interest so some creditors will continue to add this to the account. None of the post-acceptance fees and interest would be counted in the iva though. If the iva failed we would be liable for these fees and interest. Hopefully one of the pros will shed some light as I am very possibly wrong on this!
 
 

caz.123

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Post by caz.123 » Tue Sep 21, 2010 12:48 pm
i must admit though i dont like fact of not knowing exactly what is being paid off first and last in my debt management plan so i do try and ask for an up-to-date summary otherwise they never send them to you unless asked.
 
 

Broke of London

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Post by Broke of London » Tue Sep 21, 2010 12:49 pm
Hi Caz, we crossed over. Ignore my post as it only (possibly) applies to ivas. My understanding is that creditors are not required to freeze fees and interest in a dmp and this should have been explained to you when you were weighing up your options. Check your paperwork and speak to your ip/adviser to see what barclaycard agreed to originally.
 
 

kallis3

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Post by kallis3 » Tue Sep 21, 2010 1:30 pm
With a debt management plan they do not have to freeze interest or charges. It doesn't matter what Barclaycard agreed to in the first place, they can start charging again whenever they like as a DMP is not legally binding.

Is there any reason you can't do any IVA?
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
 
 

caz.123

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Post by caz.123 » Tue Sep 21, 2010 2:42 pm
that is what i originally applied for an IVA but i hadnt been accepted for so they offered me a Dmp instead.
 
 

kallis3

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Post by kallis3 » Tue Sep 21, 2010 3:39 pm
Which company are you with and what reasons did they give you for why it wasn't accepted.
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
 
 

caz.123

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Post by caz.123 » Tue Sep 21, 2010 4:09 pm
i was originally with ads first then they changed hands to freshstart and now i have been passed to their sister company harrington brooks ( sister company ). but i originally thought i was going into a iva but apparently not not sure why. shouldve checked really
 
 

kallis3

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Post by kallis3 » Tue Sep 21, 2010 4:12 pm
How much are you paying a month and what are your debts?

There is nothing to stop you from trying for an IVA and you don't have to use the same company.

Give some of the companies on www.iva.com for some free and impartial advice, or contact one or two of the experts who post on here.
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
 
 

caz.123

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Post by caz.123 » Tue Sep 21, 2010 4:14 pm
i pay 105 a month and i now owe £3000 i think
 
 

kallis3

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Post by kallis3 » Tue Sep 21, 2010 4:22 pm
In that case then you won't be eligible for an IVA with £3k debt an if all your creditors had frozen interest then you would be finished within five years.

Speak to Harrington Brookes again and get them to speak to Barclaycard again to see about getting the interest frozen.
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
 
 

caz.123

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Post by caz.123 » Tue Sep 21, 2010 4:25 pm
yes i have spoke to harrington brooks today to see if they can speak to barclays but its always me chasing them up which is a bit of a pain. but thanks for your help
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