Very/Littlewood's Catalogue Debt won't stop interest

[jobo69]

Hi I wonder if some one with a similar experience with very or knowledge can help me. I am doing a self managed DMP with NEDCAB and everyone has stopped or reduced the interest except for very. They have advised that they will initially allow a 3 month plan of the proposed payment but there is no way they can stop the interest. I initially called them and the girl I spoke to kept advising I go through step change?. The amount i have offered would not cover the interest. I also have a number of late charges at £12.00 a go and 2 x £12 for there collection dept calling me and 1 x £12 letter from there collection department.

I have verbally asked them when I started the account they said 2008. Would it be worth me getting a copy of my CCA which may give me more options in negotiating the interest.

[Tools]

Re: Very/Littlewood's Catalogue Debt won't stop interest

Hi [MENTION=62502]jobo69[/MENTION] and welcome to the forum.

The advice you were given from Very to speak with Stepchange is indeed correct.

I would certainly recommend speaking with Stepchange about the Very debt, all interest, charges and collections activity will stop.

You can call Stepchange free on 0800 138 1111 and believe me, you will be glad you did.

[Amethyst]

Re: Very/Littlewood's Catalogue Debt won't stop interest

I'm sure there was something that they had to treat self managed DMP's same as formal Stepchangey type ones.... will try find it. Of course there's no guarantee of freezing interest even with Stepchange but they do with other people so should be consistent.

[stevemLS]

Re: Very/Littlewood's Catalogue Debt won't stop interest

As Amethyst says, there is no "right" to have interest frozen and you would imagine that they look at it on a case by case basis, ie the overall level of indebtedness and the money available to service it.

I am sure, however, that a DMP proposed by Stepchange or Payplan will have greater credibility than a self-managed one, with absolutely no disrespect intended.

[Nibbler]

Re: Very/Littlewood's Catalogue Debt won't stop interest

http://debtcamel.co.uk/creditor-wont-freeze-interest/

[Nibbler]

Re: Very/Littlewood's Catalogue Debt won't stop interest

I'm sure there was something that they had to treat self managed DMP's same as formal Stepchangey type ones.... will try find it. Of course there's no guarantee of freezing interest even with Stepchange but they do with other people so should be consistent.

Not quite in those words, but....

http://fshandbook.info/FS/print/FCA/CONC/7

Unfair business practices

CONC 7.12.2
01/04/2014
FCA

A firm must not

1) refuse to deal with a not-for-profit debt advice body, debt counsellor, debt adjuster or with another person acting on behalf of a customer, unless there is an objectively justifiable reason for doing so;

(2) unless the credit agreement requires payments to be made to a third party, refuse to accept a payment tendered to the firm by the customer or by a person acting on behalf of the customer;

(3) refuse to deal with a customer who is developing a repayment plan, a third party who is assisting a customer to develop a repayment plan or a third party who is developing a debt management plan for the customer's debts, unless there is an objectively justifiable reason for doing so;

(4) where a person is acting on behalf of a customer, directly contact the customer without the customer's consent, unless there is an objectively justifiable reason for doing so;

(5) operate a policy

a) of only negotiating the freezing of interest and charges on a customer's debts where the lender has an existing arrangement with a person acting on behalf of the customer; or

(b) of refusing to negotiate with certain third parties or with a customer developing their own repayment plan; or

(6) return or refuse a repayment or refuse to credit a repayment to a customer's account merely because the repayment is tendered by a debt management firm.

[jobo69]

Re: Very/Littlewood's Catalogue Debt won't stop interest

Thank you for all your replys very much appreciated. I self manage with the help of NEDCAB DMP. All have stopped interest or reduced significantly and therefore I don't wish to move to Stepchange in the hope that they will stop my interest (they may they may not)

[Guest]

Re: Very/Littlewood's Catalogue Debt won't stop interest

catalogues usually quote the full price including interest when purchasing an extended repayment purchase, this is then the price for that item, they should not increase that price even if you go over the term and your pro rata repayments should be based on this figure along with your other none priority debts.
Catalogue companies seem to have their own rules when it comes to credit. I recently asked for an early settlement figure on partial payment of extended credit with littlwoods, they advised that they do not do them and quoted the reason above, apparently even if you pay all but one penny of the principle you have to pay the full interest, because it becomes the contractual price of the goods. Now I do not know how this fits in with the CCA or even if it is legal but according to the FCA they are within their rights.