I had an interesting chat with a colleague last night regarding the debt management company they work for. From what they said about the company, sounded like they really are a bunch of cowboys leading people into further debt. They have already had a run in with the Financial Ombudsman Services on numerous occasions, although this has only been verbally. Their operation works on the basis that they consolidate debts, charge you for the first 3 payments of that consolidated debt and then charge 17.5% or more administration fee on every payment. Better still they take this payment of your credit card putting you further into debt. Not a bad little earner for these cowboys, but if you have thousands and thousands of customers in the same boat that’s a lot of money being made. I guess its big business so any one in debt is a potential customer to them and they will go to any length to get you as a so-called ‘customer’ by paying staff bonuses for every customer they convince to come on board. These companies are sharks as they imitate/copy charity debt management web sites to get you on their system. Again the FOC has clamped down on many debt management companies for this fraudulent practice. Finally, to add more problems to the pile, some of these debt management companies are not even paying the actual creditors of their customers. They are simply stealing your hard earned money and putting you into further debt. I know we all want to get out of debt but try and check out the company that is offering you the service. Check out the Debt Managers Standards Association (Demsa) for legitimate Debt Collection companies to pay your debt to. Ignore what you read on web sites as they are the ploy to pull you in. If the web site says it is a charity check it out, first. If your simply not sure contact the FOC and ask them.Dont let these companies put you further into debt.

Here is an article from the BBC web site, please read it carefully and be careful who you pay your debt to. Some debt management firms 'exploiting' people in debt Debt firm customer Madga: "I've lost £750 that I could have used to pay my creditors" Some debt management firms are posing as charities and are driven by a sales culture, the Office of Fair Trading has found. The regulator has ordered 129 firms to clean up their act within three months or face losing their licences. A damning report into the state of the sector highlighted widespread problems including misleading advertising and poor advice to those in debt. One trade body welcomed the report, arguing that standards were improving. People in financial difficulty often go to debt management companies in desperation, the 11-month review by the Office of Fair Trading (OFT) found. These businesses charge a fee for advice and to come up with solutions, such as debt management plans or deals with creditors known as Individual Voluntary Arrangements. Three-quarters of those firms checked by the OFT charged their fees at the start of the process. This, the OFT said, would minimise the risks faced by the firms while not dealing immediately with consumers' difficulties. "In some cases, it appears that business models may be set up to take the maximum amount of money from a consumer regardless of their circumstances," the report said. "Firms are not giving the advice or offering the solution that is in the best interests of the consumer, but instead that which is most profitable to them." This could lead some people to end up in a worse financial position than before they sought help. Debt management firms must be clear about their charges and the options available to consumers” Ray Watson Office of Fair Trading Fees were expected to reach a total of £250m by end of 2010, the OFT said, with the market growing mainly through the internet. Standards should be higher, the OFT said, and it highlighted issues including: Misleading advertising by suggesting, wrongly, that services were free Frontline advisers offering poor advice Little awareness among customers that they could take complaints about firms to an independent ombudsman In the worst cases, the use of lookalike names to appear to be charitable or government organisations. Some businesses tried to discredit the free services offered by the advice sector. Others tried to "recycle" customers through different debt plans to extract more fees, the OFT said. Trade bodies Companies in the sector tend to negotiate on behalf of consumers to reduce their debt burden. About 100,000 debt management agreements are reached every year in the UK, but the number of debt management companies is not clear. One estimate suggests there are between 300 and 400, but others suggest there are more. Only about 10 are members of the Debt Managers Standards Association (Demsa). The OFT said that this trade body, and the equivalent Debt Resolution Forum, could do more to push up standards, although improvements had been made. "There is no question there are lots of cowboys in the industry," said Michael Land, chairman of Demsa, who welcomed the report. However, he said he was confident that all Demsa members were now compliant with their licence requirements. Andrew Smith, spokesman for the Debt Resolution Forum industry association, which has 46 members, said 11% of UK households had a debt problem and dealing with this was too much for the charitable sector. Charities also organised do-it-yourself debt plans, which meant people were still chased for interest, he said. He said good training, accreditation to a trade body, and an independent complaints procedure were key to bringing up standards in the commercial sector. "Debt is a problem that is not going to go away, and it is really important that the industry that is there to help people actually does have confidence from consumers," he said. "By Spring next year, that should be the case for everybody." He said reputable firms in the industry did not cold-call customers, and members of the body were listed on the association's website. The OFT said it had been taking action to close down websites and revoke some licences since 2008, but it has now stepped up the warnings. "People who are heavily indebted, desperate and vulnerable need advice which makes their problems better not worse and should not be exploited," said the OFT's Ray Watson. "Debt management firms must be clear about their charges and the options available to consumers. The level of non-compliance we found across the industry is unacceptable."

It is my pleasure and thanks for having me, unfortunate for me I have had a lot of dealings with these debt collection companies. We should not be frightened of them at all, "they cant have what you haven't got", thats my saying. I will leave some more interesting advice as I get the opportunity or am asked to do so. Thanks again

I had a call harassment problem with the Robinson Way debt collection company (and a few others) and was called by the most discourteous woman I have ever had to listen to on a telephone. The way she spoke so demeaning to me, absolutely infuriated me. How could any one speak in such a manner is beyond me, and the fact that the companies find it acceptable, shows their distinct lack of courtesy and empathy towards any one in debt. The companies called so often and at the most infuriating times that you can not help but get angry, annoyed and upset. To stop them ever calling you again, you need to do the following… This solution worked for me. I did however receive a letter from Robinson Way saying they would not be approaching me again, and would be following the FSA rules and guidelines when contacting me in the future. Solution: 1. The debt collector must have called at least a few times. Try to not lose your temper with them and avoid giving them any details and answering any questions. 2. Always ask the caller who the company is they are representing and what it is they want, but do not give them your details. 3. Tell them they should only contact you by writing. 4. When they do call on the fourth attempt, they will ask for confirmation of your name and date of birth. Do not give them your details. 5. Ask for the caller’s full name and position within the company and how they got your number. Tell them under no circumstances must they EVER call this number again as this is a private number and that you feel they are harassing you. They will say they are not harassing you, but you make it very clear that you are being harassed by the company and the caller. 6. Tell them that you know that this call is being recorded and that you will use it as evidence of the phone harassment by contacting the FOS (Financial Ombudsman Services) and the FSA (Financial Services Authority). You can tell them that you have logged their times of calls too. 7. Tell them to enter your complaint of phone harassment on to your so-called record for future dealings with the FOS and FSA. 8. Ask them if they have written down the complaint. 9. Make it very clear to the caller that, if they or any member of the company calls this number again you will initiate a complaint with the FSA immediately. 10. Say Good Bye and hang up. To finalise: The above worked well for me because the debt collection companies do not like being investigated by the FOS or the FSA. Investigations by the FOS or the FSA on site can take weeks/months and the companies lose a lot of money due to the time spent investigating hundreds of recorded calls and paperwork. Unfortunately for them, this usually unearths even more of their misdemeanour's and they are then fined in the hundreds of thousands. So your little debt and mine are insignificant compared to the possible fine the company will receive. That is why the recorded message is to our/your advantage. I only know all this because I have a friend who works in the industry and has told me every thing i should do regarding my debts. Hope it works for you