1st Credit & Clear Start Debt Solutions Interesting Letter

[grezmel]

I received an interesting letter from 1st Credit today - I havent heard from them for ages :

"1st Credit wants to help you voluntarily resolve your debt problems"

You dont have to live with your current financial situation. We have teamed up with one of the best Debt Solutions providers in the country - Clear Start - to offer you a free, no obligation Debt Advice appointment with an experienced debt advisor. They are able to arrange a number of solutions including:

If you have £15K of debt or more and are in employment, an individual Voluntary Arrangeent(IVA) may be appropriae. The Government may be able to pay off all your debts and have one lower monthly payment that covers all of your debts.

If you are a homeowner you may be able to pay off all your debts and have one lower payment that covers all of your debs.

Please contact Clear Start on 08081562575(free phone) to see if they can help you find a better solution to your current debt problems. Their advice is without obligation and their consultation is free. You must quote 1st Credit Ltd reference number when you call.

Please continue to make payments on your existing arrangement with 1st

Any comments ?

Yours faithfully

[rory32]

If you are a homeowner you may be able to pay off all your debts and have one lower payment that covers all of your debs.

Oh yes, I want to change an unsecured debt (which in all likelyhood is unenforceable) into a secured debt which I will, know doubt, pay lots of interest on. I'll be running all the way.

I've seen these sort of letters before - usually the DCA either owns the company or gets a backhander from them. You usually also get hit with a big arrangement fee, but not to worry because they'll include it in your 25 year loan.

[grezmel]

I presume they probaly havent got the original credit agreement....

I threatened them on the phone at Xmas stating that I was going to request a copy - they responded by saying they were going to put a charge on the house and take me to court.

All went quiet after that & I didnt hear anymore until this letter arrived today.

[babybear39]

Hi grezmel ,

ROFPMSL...What will these 'people' come up with next

Wonder who they employ to come up with these 'schemes' and what it costs them. Would also wonder why they just don't operate thier business properly. Surely that would cut costs and stop them playing stoopid games? Oops, forgot, dealing with 1st credit here...Silly me

Good luck and best wishes,

BB

[grezmel]

Im not sure why they have sent me this I have been paying them £20pcm for the passed couple of years - why would I want to change the arrangement I have in place ?......

[supersleuth]

The letter smells like a scam to me. Be very careful. The banks will not do anything charitable for you. Their objective is to screw more and more money out of you.

I believe that the IVA route means that you will NEVER get away from them and they will own you lock, stock and barrel. My limited understanding of the bankruptcy law is that bankrupts get discharged after two years and that is the end of it. The debt is completely absolved and you can start afresh whereas under the IVA route, you never get absolved and they own you and everything you ever earn thereafter.

If you are considering the IVA route then please first get independent legal advice. Even if the company tell you their advice is independant, don't believe them - they clearly have a business connection with 1st. Therefore, you must choose your own legal advisor. Clue yourself up on the IVA law and remember, that the law is generally more creditor friendly than it is debtor friendly and our courts are very quick to support the banks.

The one thing I have learned from all these financial shennanigans is that the banks make it easy to contract you IN, and once IN, then you'll find it very hard to get OUT. Always check out how you EXIT these contracts. That is, check not only how you can enter into the contract, but also how you can finanalise and finish the contract. Likewise, check whether the IVA laws will primarily benefit you or them. Chances are that they'll probably benefit the banks, which is probably why you got the letter.

Best of luck
Supersleuth

[sequenci]

Originally Posted by supersleuth

I believe that the IVA route means that you will NEVER get away from them and they will own you lock, stock and barrel.

an IVA is *usually* done and dusted after 5 years, sometimes 6 or 7.

My limited understanding of the bankruptcy law is that bankrupts get discharged after two years and that is the end of it.

Most people are discharged within 12 months.

If you are considering the IVA route then please first get independent legal advice.

i agree 100%

Even if the company tell you their advice is independant, don't believe them - they clearly have a business connection with 1st. Therefore, you must choose your own legal advisor.

i agree 100%, again!

I would also like to add that the government DOES NOT 'write debt off' that letter is misleading and I for one would complain to The FOS about it.

[dannyboy660]

Blimey, this is an old thread isn't it??

Are we on Time Team????

[sequenci]

Originally Posted by dannyboy660

Blimey, this is an old thread isn't it??

Are we on Time Team????

LOL, I just noticed that!

Maybe Tony Robinson has an alias?

[stabradop]

Originally Posted by supersleuth

I believe that the IVA route means that you will NEVER get away from them and they will own you lock, stock and barrel. My limited understanding of the bankruptcy law is that bankrupts get discharged after two years and that is the end of it. The debt is completely absolved and you can start afresh whereas under the IVA route, you never get absolved and they own you and everything you ever earn thereafter.

I had an IVA from Shaws based in Grantham. I found them very reasonable in terms of repayment. Once you are in the agreement with a reasonable payment you only have to do an in/out sheet once a year. They said to me that if after a year I had (for example) £100 extra cash per month they would want about £25 of that. After 5 years with them they closed everything off and sent me the court papers saying that the account had been properly settled.

No probs at all, if you owe a great deal its not a bad route to go down. The only warning I would give is that if you don't stick to the agreement without very very good reasons then they would apply for bankruptcy etc. However if you suddenly encounter problems I found that company (think they are called payplan or something now) very helpful and they will let you off a couple of months payments if you have good cause.

stab

[sequenci]

Yeah I work with Shaws sometimes, actually one of the better IVA firms out there.

I still state than an IVA is the right option for less than 2% of people in debt, however.

[stabradop]

You may well be right sequenci, I can only go with my experience although I would rather go the IVA route personally than get some other type of loan, particularly if it is secured.

[sequenci]

Originally Posted by stabradop

You may well be right sequenci, I can only go with my experience although I would rather go the IVA route personally than get some other type of loan, particularly if it is secured.

i'm not a huge fan of consolidations either so i'm with you on that.

turning unsecured debt to secured debt is VERY risky.

[ODC]

I think 1st Credit are stretching the OFT guidelines here by suggesting you get a loan to clear your debts

[sequenci]

Originally Posted by ODC

I think 1st Credit are stretching the OFT guidelines here by suggesting you get a loan to clear your debts

The OFT are fully aware of the actions of 1st Credit believe me