User Tag List

Thanks Thanks:  0
Likes Likes:  0
Page 1 of 3 123 LastLast
Results 1 to 10 of 22

Thread: Debt Management Companies

  1. #1
    Regular Member HITFACTORY1403's Avatar
    Join Date
    Mar 2011
    Location
    NEWCASTLE UPON TYNE ( Shiremoor )
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default Debt Management Companies

    My ex lass has got money troubles , ( loan , store cards etc )

    so , just over a month ago , she contacted a debt management company , who said they could bring down her £ 700 a month out goings to £ 250 a month .

    So far she has given them £ 300 and they have done nothing so far .

    Well , just today Barclays has rang her to say no payment has been paid towards a Barclay loan and if not sorted soon , her account may be frozen .

    Also the store cards have not been paid either and she is receiving letters of over due bills .

    She has been charged £ 70 for admin / paper work / setting up .

    She has signed an agreement paper with them ,

    but it is she , in person on the phone , who pays the monthly amount to the management company ,

    so , it is not an agreement of direct debit .

    If they are not doing the job she has paid them to do , she will just stop the monthly payments , but she wonders if the contract ties her into anything .

    After one month some bills , surely , should have been paid by now .

    ================================================== =

    What are peoples thoughts about this situation and any ideas about resolving it .

    THANK YOU FOR ANY HELP .

  2. #2
    Regular Member Big Knox's Avatar
    Join Date
    Feb 2009
    Location
    Edinburgh
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Call them and ask them whats going on. She needs to be careful because it could result in her credit rating getting trashed.

    Who's the company? Its an area you need to be selective in because there are lots of good charities that'll do it for nothing for you and lots of cowboy companies that'll take you for a ride.

  3. #3
    Regular Member disco dan's Avatar
    Join Date
    Apr 2011
    Location
    Southport
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Payplan don't charge. At all. Full stop.

  4. #4
    Regular Member
    Join Date
    Oct 2011
    Location
    Essex
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Spend 5 minutes on the money saving website, will give you the impartial options.

  5. #5
    Regular Member mcpitman's Avatar
    Join Date
    May 2011
    Location
    Derby
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Quote Originally Posted by disco dan View Post
    Payplan don't charge. At all. Full stop.


    It depends on the contractual agreement she has with DM Firm, It also depends who that firm is.

    As said above, Payplan do not charge, when you have handed your affairs over to them they will provide you with a reference number. At the first contact with your lender(s), you would provide them with the reference number and the company name, they will then send this to a specialist in house team that deals directly with the DM firm and makes arrangements to pay.

    Firstly I would advose you contact the DM firm, and ask what exactly is happening with your case and why non of the kenders have been contacted.

    I believe some of the more reputable firms have a 28 day colling period from the agreement you have signed with them.

    If you are not happy in any way, seek advice from either the Citizens Advice Bereau or go to www.moneyadviceservice.org.uk

    Be aware that some of the firms that advertise all over the telly and in papers, do and will charge you quite a lot of money for there services.

    For example, you pass a debt of a £12k loan that has £10k oustanding on it.

    The DM firm will contact the lender and offer, for example, £3k as settlement figure for the loan. It is likely the lenders will reject this amount and ask for more, but will probably settle for a settlement of £3.5k.

    This is because some money back on the loan debt is better than spending thousands chasing the debt.

    If the lender accepts the lower settlement they will default you for the full amount and note that they settled at 29% (£3k) to original loan value (£12k).

    However the debt management firm will still chase you for the full amount outstanding at the time the debt was settled by them (10k) minus the setllement fee (3.5k).
    Balance outstanding (6.5k) plus £25 per pop for a letter contact to your original lender and legal fees for settling the debt on your behalf.
    And they will just spread the cost of the debt over a longer period at an astonishingly high APR.

    This then makes them a shedload of cash.

    This also still gets you defaulted for the full amount and ruins your credit history.

  6. #6
    Regular Member mcpitman's Avatar
    Join Date
    May 2011
    Location
    Derby
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Best advice after that little rant is contact the lenders directly and see what they can do first, most have lower repayment options available.

    Controversial statement - It would be worth also checking for loopholes in the credit agreements, such as unenforcable CCA's etc.

    Search Martin Lewis and see what he's got to say about it all, his website is full of advice, template letters to send etc..

  7. #7
    Regular Member Cruize's Avatar
    Join Date
    Dec 2009
    Location
    South East
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Usually with these things you have a reference number. When the creditors ring you to chase payment you give them the company and ref number dealing with the debt and thats the last you will hear from it other than through your debt management company.
    I'd call the debt management company and find out whats going on though as if they havent paid anything then it will leave late payments all over your credit history which isnt good.

  8. #8
    Regular Member bigdave1701's Avatar
    Join Date
    Apr 2010
    Location
    York
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    CCCS (Consumer Credit Counseling Service) will deal with your creditors free of charge. You pay them £X and they pay the bills. CAP (Christians Against Poverty) Will do the same but rather than just sorting out your monthly payments, they'll sit down with you (well your GF) face to face and go through household income & expenditure etc.. so they can be sure she can afford her monthly payments .

  9. #9
    Regular Member HITFACTORY1403's Avatar
    Join Date
    Mar 2011
    Location
    NEWCASTLE UPON TYNE ( Shiremoor )
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    It seems the debt company she has gone with are very clever with terminology and using scare tactics .

    when setting up , she was told you don't want to be declared bankrupt or have no credit score , or be taken to court , etc etc .

    she initially thought her " initial fee " was £ 70 for paper work etc and then £ 35 management fees every month after .

    but after going on the internet , loads of people have given them bad reviews , regarding set up costs ,

    According to angry reviewers on the web ,apparently the first 3 months payments are for setting up the account , in her case , it's about £ 750 )

    but the company said ... No No No , we hold that money until we reach agreement with the creditors .

    BUT , how can you put a value on £ 250 a month , when you don't know the value the creditors want .

    Well , many web reviewers were told about holding the money ( to go towards the creditors ) and would you believe it , they all took 3 months to negotiate , but the creditors only got a single monthly payment .

    So she would be £ 750 down in the first 3 months ,

    THAT MONEY COULD HAVE BEEN USED TO PAY OFF DEBTS .

    But , apparently , if no payments are paid in those 3 months , the person in debt may " default " and cannot then get a consolidation loan etc to dig them out .

    The debt company relies on this default , so the debtor only has the choice to go to them .

  10. #10
    Regular Member mcpitman's Avatar
    Join Date
    May 2011
    Location
    Derby
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    StatsVehicle Info
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Has she paid any monies to the debt management firms yet?

    Still try to contact the lenders directly, most have lowered payment plans in line with the TCF guidance provided by the FSA

Page 1 of 3 123 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. remaping companies
    By pipamish in forum Petrol Engine related
    Replies: 23
    Last Post: 29th June 2012, 21:13
  2. A debt i shall never forget.. 11/11/11
    By armoured farmer in forum General Chat
    Replies: 26
    Last Post: 13th November 2011, 19:43
  3. 3 year old debt being demanded, HELP
    By Big Sig in forum General Chat
    Replies: 13
    Last Post: 19th June 2009, 20:21
  4. credit card debt
    By scottyd in forum General Chat
    Replies: 20
    Last Post: 20th February 2009, 23:22
  5. Insurance Companies
    By WeDesign in forum Insurance Chat
    Replies: 3
    Last Post: 10th August 2008, 22:01

Visitors found this page by searching for:

Nobody landed on this page from a search engine, yet!

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •