Loan company accepting payments from debt management company

[sorrento]

Hi,
I started a debt management plan 1 year ago with KFM. All my creditors accepted this although Everyday loans refused initially to agree to payments. However they have been recieving £35 a month off of a £2500 loan. In their recent statement from them they show all the payments but the loan debt has now increased to £4,000. KFM state via phone that Everyday loans have agreed to the payment terms. However I cannot seem to get this in writing.
If this continues I will owe nearly £15,000 by the time the plan ends which is more than all my debts together.
I have tried discussing this with the loan company who state that unless i make full payments as in the loan agreement this will be the case.
The debt management company state that the loan company have agreed reduced payments and the letter they sent me is a standard letter!
As I don't have written confirmation of this I am worried that by the end of my debt management plan I will be worse off because of this one company. Would I then be able to take this to the financial ombudsman or would i end up having to pay. I cannot seem to get an answer from the debt management company!

[enaid]

Re: Loan company accepting payments from debt management company

Hi sorrento and welcome,
Your creditors are not obliged to freeze the interest on the debts you have. Have you had an annual statement from the loan company? You should receive one by law on the anniversary of the loan.
If you havent then I would ask why not, if you have then you should see what int etc has been added to the account.
Enaid x

[Amethyst]

Re: Loan company accepting payments from debt management company

Is KFM Kensington ?

[sorrento]

Re: Loan company accepting payments from debt management company

Hi Amethyst, yes KFM is kensington. I have had a statement from the loan company. This is what alerted me to the fact that my loan has risen to just over 4,000. Given that I had been paying the loan of 2,500 for 8 months at 170 a month before I got into trouble, this rise appears extortionate. They are saying that unless i revert to my initial payments I will owe them nearly 15,000 at the end of the five year debt management period. I have spoken to Kensington who said that they have already sorted it out although when I ask for everything in writing they just keep getting someone else to phone me to "put my mind at ease".

[Amethyst]

Re: Loan company accepting payments from debt management company

Okay. Did Kensington try and negotiate with the creditor to freeze interest charges etc - well obviously not really.

I think, and risky, you should get out of your DMP with Kensington, stop paying Everyday loans and let them take you to court, defend the insane increases and offer to pay on the actual debt owed. Get the rest of the creditors set up with the same monthly installment via a FREE DMC like CCCS, or Payplan so they keep trundling along.

I'd also, right now, send a CCA request and a SAR to Everyday loans, and I would also SAR Kensington - I think you will be suprised how much of the monthly payment you make to them actually goes to creditors.

[sorrento]

Re: Loan company accepting payments from debt management company

Okay, Kensington have said to e that they have negotiated but obviously they haven't. I currently pay 241 per month and 198 goes to my 8 creditors.
On the last statement I recieved the only company which they hadn't ticked as agreeing to halt interest was Vanquis (credit card).
I am really reluctant to close my account with KFM as I had such hassle from creditors previously and wiouldn't want the change of plan to go against me again.
sorry to be so naive but what is a CCA and SAR? Thanks, Helen

[WendyB]

Re: Loan company accepting payments from debt management company

CCS and Payplan who Ame mentioned above will do the same as KFM, only better, and they are free, you will not be paying 43 per month to them. This 43 would be better used paying your creditors rather than lining KFM's pockets.

You mentioned a credit card, are there any charges on it such as late payments, overlimit fees etc that could be reclaimed and reduce the outstanding balance? Likewise with your other creditors.

Might be worth posting up a list of who you owe what to, we might be able to give you some advice on how best to handle them....

[sorrento]

Re: Loan company accepting payments from debt management company

Okay, thanks for that, off the top of my head they are
Vanquis 1300,
Welcome Finance 2400,
Northants Council (overpayment of wages)3300
JD Williams 1200,
Pounds til payday 1000,
quickquid 700
welcome cottages 200,
Everyday Loans Ltd( this was around 2000 at start of plan now £4000.

Welcome finance is now a CCJ and I was directed to pay £50 per month. Initially when kensington took over they advised me to stop making payments which took me three months to sort out and i nearly had to go back to court. Kensington then denied that they had said it. Now i request them to put everything they tell me in writing, most of the time after several requests I do get it. Do you know if the creditors will be okay for me to get rid of KFM as long as I continue to pay them direct or will they then start to hassle me again for more money, that is my worry about changing company in case they think I am trying to get out of paying.

[WendyB]

Re: Loan company accepting payments from debt management company

to be fair you don't need to do it through a DMC at all if you don't want to, sometimes its just easier as the DMC takes all the hassle out of it, you just make one payment to them and they sort it. The creditors should be ok with it, as long as they are getting their money every month. I would advise that you get a new DMC sorted and they will transfer everything from Kensington and correspond with your creditors.
Might also be worth you filling in the I&E form on here, then we can have a look at how much you can afford, how much you should be paying your creditors each month etc. Kensington may not have got it right....Amethyst is the best one to look at that though as she's got more experience with that stuff.

How mcuh are you paying to each debtor each month?

[Amethyst]

Re: Loan company accepting payments from debt management company

Have the payday loans people agreed to halt interest and charges too ?

Some heavy subprime creditors on your list....worth looking at the agreements to see what wriggle room you have, and I would certainly ask them for up to date statements of the accounts to see where you are actually at (regardless of what Kensington say and find out if they have actually stopped interest )

It may also be worthwhile having a telephone appointment with CCCS and see what they think about your Kensington plan.


Just having a look at Everyday loans website, and can't see any mention of interest rates or terms on there at all before you apply. Pretty sure thats against some rule or other. How did you apply - online / phone or branch ?

First step to sort this Everyday loans one out, which is your current main bugbear is to send these letters....if you can't afford the £10 for the SAR, just send the CCA letter for the moment.

SAR for Everyday loans = needs a £10 cheque payable to I assume, Everyday Loans.

Dear Sir/Madam

SAR (Subject Access Request)
FULL NAME : FULL ADDRESS : POSTCODE

Account numbers (if you know them)

I formally request that you forward me a true record of any Data held by your organisation relating to myself for any and all accounts held currently or in the past with your company. This should include all transactions or statements of account and any agreements.

I enclose the statutory maximum fee of £10.

You have 40 days from receipt of this request in which to return to me the information requested , securely and in legible condition.

Please note that the above address is the one registered with your organisation and which you have previously found to be acceptable.


Yours faithfully,


(signature)


(name)

And a CCA request (you need to send £1 by cheque made payable to Everyday Loans with this letter )

Your Address

Date

Company Name
Address
Dear Sir/Madam

Ref:− Your Reference

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We look forward to hearing from you.

Yours faithfully

Your Name

I completely understand your reticence to change DMP companys so lets take a look at the one thats causing problems and worry for you first, then we can look at the overall picture later.

As Wendy says, dig out any paperwork you have (agreements, statements etc) we can look at reclaiming PPI's, late payment charges etc to reduce balances, and check the agreements are sound.

If you want us to have a look at your IE sheets then you can find it Legal Beagles Consumer Forum and you can upload it on here or email it to me if you prefer to keep the details more private - admin@legalbeagles.info - and we can see if what Kensington are doing is appropriate for your circumstances and what if any changes need making.

[Amethyst]

Re: Loan company accepting payments from debt management company

Welcome finance is now a CCJ and I was directed to pay £50 per month. Initially when kensington took over they advised me to stop making payments which took me three months to sort out and i nearly had to go back to court.

Disgusting behaviour. Its cause Kensington wanted your money instead that's all. They keep the first two or three month payments in full, then their £43 each month thereafter.

You back on track with the CCJ now ?

[Amethyst]

Re: Loan company accepting payments from debt management company

Found another Everyday Loans case, they charge around 76% APR (ouchhhhhhhhh) so standard charge for credit on a £2.5k loan would be about £2k. Expensive way to borrow but cheaper than quickquid and pounds till payday). When did you take this loan out ?

Example of an agreement (this is what your CCA request should get them to send you - so if you already have the original handy and can post up the figures that would be ace)

[sorrento]

Re: Loan company accepting payments from debt management company

Okay, thanks for all the advice and info, brilliant. I am in the process of sorting out all the information and will get back to the forum in the week. I think I have the original CCA for Everyday loans. Both quickquid and paypal froze all the interest and accepted payment with no difficulties. The worst one apart from everyday loans was JD williams, who directed me to kensington in the first place. They kept adding on late payment charges stating that it was because kensington paid monthly and not every 28 days. I have had to write several letters to kensington hassling them to sort it out but they finally seem to have done so! I have just asked Kensington for a balance for all my creditors as I have been with them a year. The balance they put on their monthly statement is always the initial balance i started with which isn't too helpful. Its not a company I would recommend to other people.

[enaid]

Re: Loan company accepting payments from debt management company

As you say you wouldn't recommend them and I sincerely hope that you will consider changing to CCCS or Payplan, or even tackling them yourself when you feel more confident with the way things can be dealt with, Good Luck.
Enaid xx

[Tools]

Re: Loan company accepting payments from debt management company

Hi, Did JD Williams refund the late payment charges to your outstanding debt?

If not can you total them up and let us know the amount, also the amount outstanding to JDW please. In the meantime have a read of my thread here Tools vs Simply Be / Shoe Tailor / JD Williams / Candid Collections - Legal Beagles Consumer Forum it will give you some idea of how to go on getting the charges refunded and possibly the account settled. It's an easy one to start with and one to maybe knock off your list of creditors, after that I can guarantee you will start to feel more in control of the others.