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Ben Jones
Ben Jones, UK Lawyer
Category: UK Law
Satisfied Customers: 9038
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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Good Afternoon, I need some advice! In brief I entered

Customer Question

Good Afternoon, I need some advice! In brief
I entered a DMP in 2011 and in September last year I noticed that Barclaycard had passed my debt on and sold it to a debt collector. In this 8 months I have had various conversations around being refused credit, my credit score reducing 750 points, worried about my own business where I provide IT consultancy to financial institutions etc. After months of work I found that the DMP company overcharged me my monthly fee which resulted in less money going out to creditors, this triggered Barclays to pass the debt as the money being paid them did not service their agreed repayment plan, thus selling the debt and defaulting me. I also have various other creditors adding missed payments to my credit account, making the credit score worse (which I havent).
Overall I am totally dissatisfied with them, I have written various emails, have the Financial Ombudsman involved but still slow in getting anywhere. My question, could I take legal action?
Submitted: 7 months ago.
Category: UK Law
Expert:  Jo C. replied 7 months ago.
Against whom and for what?
Customer: replied 7 months ago.
Against the debt management company that I am paying on a monthly basis and as a result of there mistake in overcharging me for their services reduced the payments being made to my creditors thus resulting in a huge drop in my credit file, worry for my position of work as I worked in a financial institution (credit checked), preventing me moving to other financial institutions due to the default on my account recorded by Barclaycard 4 years after I entered a debt management plan as a result of the debt management companies mistake of over payments, resulted in unable to get a mortgage, unable to get credit, refused, the time I spent researching this (several months), this list goes on. I thought I had explained this in my initial question.
Expert:  Jo C. replied 7 months ago.
But surely you would have been paying at a reduced rate anyway? That is what debt management means.
Customer: replied 7 months ago.
Overall they had dismissed everything but i ma in the process of getting a letter from Barclaycard stating that the drop in payments resulted in my account being passed to a debt collector and the default being recorded when they sold the account in September 2015. They have since contacted me to say that tehy have back dated the default to 2011 when I entered the plan and said that the reduction in fees resulted in the default being recorded then and my debt being sold.
Expert:  Jo C. replied 7 months ago.
Ok. But that would have happened anyway? That is what happens on debt management - you pay at a lesser sum
Customer: replied 7 months ago.
Quick figures as you dont seem to understandPayments for 5 years by me from June 2011 - 300.00
Monthly fee 45.00 per month to the DMP company
Creditors - 255.00 per month get the remainder of money to service an agreed amount in the way of a %Payments from April 2015 - 300.00
Monthly fee 145.00 per month to the DMP company a mistake they admitted.
Creditors - 155.00 per month get the remainder of money to service an agreed amount in the way of a % the reduction in the monthly agreed fee resulted in the default being recorded at a later date, debt being sold and the mess to my credit file from 900 to 150 etc....All in all I have kept to the terms of the DMP, the company looking after the plan for me have damaged my credit file amongst other things as a result of their mistake.
Expert:  Jo C. replied 7 months ago.
Yes.So the higher amount was a lesser sum than the minimum payment?
Customer: replied 7 months ago.
Yes, through a mistake that the company made they overcharged me for several months which resulted in the minimum payment that was agreed with creditors being reduced until I noticed the error. But, as a result of the decrease in the minimum payment being received by Barclaycard it triggered a figure that was unacceptable and thus the debt way marked as a default on my credit file and sold to an agency. The company acting on my behalf refunded the monies to me but then I realised that my credit score was reduced considerably, Barclaycard have confirmed it was as a result of the lower payment than agreed as part of my debt management plan, the company dealing with it on my behalf say that is is because Barlclays sold the debt and the account was a formal agreement which again does not work as a dmp is informal.There have been several conversations about this and taking up my time as well as stressful in many situations. It has damaged my file which is still damaged and taking a long time to get it put right, no one seems interested which makes it all the more stressful.
Expert:  Jo C. replied 7 months ago.
Yes, I understand all of that. However, the payment being proposed on debt management was lower than the minimum sum you were due to pay to the creditor?
Customer: replied 7 months ago.
Yes it was as a result of there mistake. Each of my creditors has accepted a % of the 255 per month and because of the error by the company dealing with my payments the payments received we lower than accepted from the offset or agreed.
Expert:  Jo C. replied 7 months ago.
But surely it wasn't?There would have been a reduced payment even if everything were done perfectly?
Customer: replied 7 months ago.
I am sorry but do youunderstand what I am talking about?
Customer: replied 7 months ago.
There was a reduced payment from the offset, a payment i was bound to uphold for the duration of the DMP and an agreed amount set by my circumstances through a means test.300 pounds per month repayment by me to my creditors was agreed as part of the DMP and myself, what, at the time I could afford. Now as a result of the overcharge by my DMP management team meant there was less money being made available to service my debt thus breaking the agreement that had been agreed from the offset. This broken agreement was due to the DMP company I employed having 100 pound a month less to service the debt thus these figures did not match the agreed amount agreed as part of the DMP, thus breaking it as far as Barclaycard were comcerned meaning I got a default and every other symptoms like stress as a result throughout fault of my own.Why is this so difficult for you to understand? Are you a real soliton?
Expert:  Jo C. replied 7 months ago.
Thanks.Following your responses I do not want to continue with this.All the best.