Halifax and DMP

[AC1975]

I've been on a DMP with Payplan for over 2 years. One of the creditors, Halifax, had a starting balance of £6500 on their credit card. And I've paid £3000 towards that particular debt. However Halifax have written me a letter (through moorcroft) showing the balance is still £6500. i've argued that it should be £3500 but they are not budging saying they never stopped interests etc. I am furious as this was indicated to me and can be backed up by the fact that Halifax had stopped the interests on 2 other smaller loans. I've taken them out of my DMP until they clarify the balance. In the meantime can I do anything to get them to accept that the balance outstanding should be £3500? Thanks for any tips.

[plasticdaft]

Probably not,as you have no guarantee that interest on any debts in admp will be frozen. Its really something for payplan to deal with though.

Paul

[ginger3232]

Ac1975 - welcome to the forum - i fully agree with plasticdaft - there is no guarantee with DMP - you do however need to be careful as the Halifax would be within their rights to seek further recovery action for the money (ie CCJ)

[Tina Shortland]

Hi AC1975, you need to get this cleared up by Payplan. Even if they did continue with interest charges, to have not paid back a single penny over 2 years sounds unreasonable and you are going to be stuck with this forever.

Unfortunately this is a downside with DMPs in that creditors can still do this to you and the debts can go on for much longer. Is remaining in your DMP still the best thing for you?

[Michael Peoples]

This is typical of the 'free' sector who are paid commission by the banks to collect their debts. The longer you repay the more the banks get and the more the 'charity' is paid. Had you used a fee paying service they would have done their best to freeze the interest even if this meant stopping payments until the interest and charges ceased. Even by adding the fee charge you would be debt clear quicker and this is another salutory lesson for those who advocate bank funded 'charities' over professional firms.

Get some free advice from a professional firm who would have your best interests heart. It may be a DMP is still the right option but perhaps bankruptcy may be better or an IVA especially given the treatment you have received from the Halifax and their pal.

[AC1975]

I totally agree. It's only recently I found out that Payplan were being paid by the creditors!!! I couldn't believe it. Nowhere was this point made/highlighted. i think it puts a different complexion on things. Had I known this I wouldn't have signed up with Payplan -ultimately they are not going to work for me (as I have found to my detriment). I feel like making a complaint to the OFT about this. In a way I want them to take me to court so i can raise this issue and ask about the fairness of it all. What sort of 'charity' is this?!

[artemischild]

interesting how they have John Fairhursts quote of "There are now numerous debt management companies who are making huge profits from charging their customers monthly fees and set-up costs for exactly the same service that Payplan offer for free." on there website in big letter....i wonder how much they all pay themselves?

This is the problem of being with someone who is not working for you but working with others interests at heart, utterly terrible the way you have been treated however i fear taking it to court wont achieve anything, they havnt broken the law and they stay within guidelines! screwed if you do screwed if you dont!

[plasticdaft]

I would consider making a complaint as you have been in a way mislead on the service you have been offered and only by people making such complaints will the charity sector start being taken to task!!!

Paul

[Michael Peoples]

Hardly Paul when the mainstream media are sucked in and the government posts their propaganda all over their websites.

We even see links on CAB websites to these so called 'charities' and we rarely hear about the abuses anywhere but here. Other forums like moneysavingexpert preach the benefits of these people and more clients are sucked in. It stinks.

[Foggy]

Yes, I have had a few run ins on MSE's site over this !!! I do think that someone affected should make a formal complaint to OFT, if enough do it they might, at least, order that they be more transparent in their sales blurb and website.

[Gemma Burton]

Hi AC1975, I think the best thing for you to do is email your case officer and ask them to look into this for you. We work very hard with each of your creditors with the aim of getting all interest and charges frozen, however we can never guarentee this will happen. Alternatively if you would like me to look into anything for you them please email me directly.

Just to clarify - we are not a charity and we do not claim to be. We do not receive commission from crediors, however we receive a fair-share contribution from a number of creditors who recognise the work that we do with our clients to repay their debts. We have never hidden this from our clients and we always explain this to them on the first phone call that we have to them.

Thanks

[artemischild]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>We do not receive commission from crediors, however we receive a fair-share contribution from a number of creditors who recognise the work that we do with our clients to repay their debts.

Gemma, i think its still fair to say however you benefit from the longer people pay the more payplan earns? Surely this is unfair, misleading and not very well explained on the website!

Do you advise those in a DMP that the creditors can at any point add interest? no time limts to an end are fixed etc?

[Gemma Burton]

We advise all of our clients of all of the potential outcomes of a DMP. We offer a range of solutions and will always give the client the different options available to them in order for them to make their own decision.

[artemischild]

But you benefit from the creditors who engage with you and not the clients you also represent? As in that’s how your company raises money?

[Gemma Burton]

We only receive fair-share contributions from some creditors. We would never put a client into a plan just to make money. We always offer client the most appropriate options available to them and they will decide the route that they want to go down. This could be a DMP, IVA, Debt Relief Order or Bankrutpcy.