I have this store card that i'm trying to pay off but they refuse to stop the interest and charges. any suggestions on what to do?
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it started two years ago when i my hours at work were reduced. i offered the £5 a month which they accepted but kept adding charges that put over £1,000 extra on the balance. then they were charging over limit fees plus interest plus insufficient payment. it took 4 letters from the citizens advice before charges were stopped. then after a year I increased the amount to £10 and they started taking nearly all as interest. i've got a full time job now and I offered £50 a month to try and clear the balance. they are now charging interest and overlimit fees all over again and when I complained they tell me they're not obliged to stop the charges. what they've offered only reduces the debt by £5 a month if I pay £50. i feel like i'll be paying this debt for life and I need a way out. I've decided to stop paying and risk court action as at least the total will become fixed and I can concentrate on paying it off. I have no problem with my other creditors.
Answers (2)
Hi minaan and welcome to the forum.
Store cards are infamous for high interest and even higher charges when things go wrong. MY initial reaction here is to return to the CAB and get their updated assistance in requesting that all further interest charges are stopped and you pay off capital only. That seems entirely sensible and what they are doing to you is unacceptable. As you say, the only other option is to cease paying altogether but my view it that a deal with interest frozen and repaying capital only would be preferable. To be honest, a £1000+ in interest charges is obscene and something has to be said about the way that these store cards promote business and jump on you from a great height when things go wrong. The whole situation depends on your overall income and expenditure situation and perhaps a fresh reviewal with the CAB and new proposals as above are needed. You should not give up!
Name and shame..
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