debt managers

[craig morgan]

Hi about 12 years ago i was made redundant and could pay my overdraft of £1000 with tsb so they past me to debt managers and ive been pay £5 at first then £3 a month all these years on they said i still own £4000 can they do this as will never see the end of this debt.

[Curlyben]

Re: debt managers

And how does the DCA justify this ??
A DCA CANNOT add interest to a debt unless there is a clear contractual provision.

[bluebottle]

Re: debt managers

Hello Craig,

Someone is taking the yellow stuff. And I think you'll find it's Lloyds TSB and the debt managers. By my calculations, a payment of £6.94 per month over the last 12 years should have cleared this. Check the agreement just to make sure they're not adding interest or debt management charges. Also, check to see if the debt managers are linked to Lloyds TSB in any way, either as a wholly-owned subsidiary or as part of a business owned by Lloyds TSB Group.

Curlyben has summed it up perfectly in what he says in his post.

Check the agreement, as advised above, then come back onto this thread.

Bluebottle

[craig morgan]

Re: debt managers

And how does the DCA justify this ??
A DCA CANNOT add interest to a debt unless there is a clear contractual provision.

can you help me through this what is contractual provision where do i start please.

[bluebottle]

Re: debt managers

Hello again Craig,

Very simply, a contractual provision is something that forms part of a contract. "Contractual Provisions" are also known as "Contract Terms" and, sometimes "Terms and Conditions".

What Curlyben has said, in layman's terms, is are there any conditions attached to the debt management that you are required to pay interest on the outstanding balance and/or debt management charges? You should be able to find this in any paperwork Lloyds TSB and/or the debt manager sent to you.

My reason for asking if the debt manager is tied up with Lloyds TSB in any way is that debt advice is available free of charge from CAB, National Debt Helpline and other free debt counselling organisations.

Bluebottle