Refusing to Freeze Charges and Interest

[adder1]

I asked credit card companies to freeze interest and charges in April this year when I was unable to pay. I am now in a position to pay them off, however none of the companies (MBNA x 2, Barclaycard x2, Opus and Egg) have frozen anything and basically ignored my request. What they have all done is call repeatedly and continue to issue statements adding to my debt.

The CAB helped me prepare a financial statement, which I sent to all the companies, MBNA and Barclays have basically played for time by asking questions and requested it in their own format (which is basically the same as the one I have already sent them).

I would like to pay them all off, minus the interest and charges that they have added since April - does anyone have experience/advice regarding this?

[labman]

Re: Refusing to Freeze Charges and Interest

When you say CAB helped you to prepare a financial statement, was this a Common Financial Statement (you'd probably have been given a CFS Summary - two sheets), or was it a CASHflow statement?

I imagine it would have been one of these. If not, could you describe what it was please.

The sort of financial statement you send will have a direct bearing on your best way forward.

[adder1]

Re: Refusing to Freeze Charges and Interest

It was a common financial statement...

[labman]

Re: Refusing to Freeze Charges and Interest

I'd be inclined to write to them quoting the new OFT guidance stating that if they refuse a reasonable offer through a CFS they should provide a GOOD reason as to why they have refused it. I'd also point out that the lending code states that they should do their best not to increase peoples' debts by adding charges and interest, but should look to freeze those.

I'd then offer them a Full and Final settlement (see post about these to make sure it is watertight) for the amount owed, less the interest and charges. If accepted in writing, make sure the payment is made by a third party.

If they refuse, report them to the FOS.

[adder1]

Re: Refusing to Freeze Charges and Interest

Thank you....this is very helpful....one question....why does the payment have to be from a third party?

[Celestine]

Re: Refusing to Freeze Charges and Interest

Watertight Full Finals Settlements? - Legal Beagles Consumer Forum

Post 7 onwards deals with third party payments