I took out a loan with Alliance and Leicester in 2006 for Â£5000. Due to various reasons I was unable to keep up the repayments and have been paying Â£5 per month on advice from CAB.
A&L has now changed to Santander. The current amount outstanding is Â£3649.46. This is good as it is gradually being paid off, but, interest is charged every November to the sum of Â£309.93. I have written to them asking that they freeze interest like other creditors but they have not, any ideas?
Thanks in advance.
They don't have to freeze interests but try a letter saying your paying Â£60 a year off the debt as that's all you can afford according to CAB and adding Â£309.93 throws me further into debt. If they know your on a DMP (managed by CAB or by self) they may freeze the interest.