Debt Management Plan Dispute

[awaywithyoudebt]

Hello all, I’m new to this site and feeling very anxious at the moment!!

 

I came across this site just by chance yesterday and wondered if anyone can help me out.

In May 2005 I consolidated all nine of my debts into a debt management plan with a popular debt management company (DMC), a total of £12590.00. The payments were to be made for 43 months which should have been completed by Nov 2008. Naturally, I was looking forward for that day to come.

 

Before joining them I was reassured by one of the customer services staff that once I’ve reached the last one or two payments (43 months in total), I should get in touch with them where they can contact all my creditors to negotiate the rest of my debts to be written off at 80% or completely. This included any added interest/fees as well. The CS staff even said that the creditors are usually happy to do this, since they wish to get rid of the debt.

 

I gave the DMC a call last Oct 2008, as instructed. Once they’ve contacted all my creditors, they phoned me back and told me that all my creditors are refusing to write off the remaining debts, which had mounted up to a of £2664.41. The DMC informed me that it’s not in their powers to do anything about it, so now I’m now expected to make further payments until Aug 2009, not to mentioned further interest/fees that will be added on. Meanwhile they would try to get the creditors to freeze the interest/fees. Of course I was angry with them for telling me one thing only for it to be another.

 

I put in a complaint against them right away to the Financial Ombudsman and received the final letter from the adjudicator last Saturday. He informed me that he couldn’t take the case any further ’since the matter I’m complaining about arose before 6 April 2007 and that the alleged misrepresentation occurred in April 2005’.

 

I’ve since cancelled my standing order as a protest, since I feel that I’ve more than paid off all my debts (the last instalment last January). So far I haven’t informed the DMC of my decision and I know I will soon be receiving threatening letters from the creditors. I’m also trying to get legal advice and feel that I could use that money for legal fees instead and is the only way, as like many people I’m struggling to make ends meet. I’ve reached the point now where I’m prepared to go to court over this, since I feel that I’m faced with an unjust/unfair situation as the banks are greedy getting people into more debt. Please let me know if I’m doing the right thing.

Edited February 24, 2009 by awaywithyoudebt
General Debt Issues

[PGH7447]

Hi now you are on here you can fight them yourself, debt managment plans where you pay someone to negotiate on your behalf will run and run, remember they are getting a percentage of your monthly payment, so they dont want it to end.

 

first thing to do is send a cca request to each creditor that is a credit/store card and see what comes back in terms of an agreement, or send a sar to each creditor and get the agreement and statements to see what has been added by way of charges which you can start to claim back.

 

I see you cancelled the dd to the dmp GOOD let em rot, if they come back at you just say you are now in control and feel that you hve wasted years of money on them for nothing.

[awaywithyoudebt]

Hi PGH7447

 

Thanks for your helpful advice and I will start the ball rolling. Question: does the same thing apply to free dmp companies that don't charge you? Because if it does, that would explain why they're not quick to push the negotiation forward on my behalf. My dmp company distributes all my payments for free. I do apologise for not mentioning this before as I'm still trying to get the hang of things here.

 

Kind regards

 

 

awaywithyoudebt

[blueda]

Hi, below is the link to the letter templates page, letter N is for CCA request, dont sign it and send £1.00 postal order and send recorded delivery.

http://www.consumeractiongroup.co.uk/forum/generel-debt-issues/20758-cerditors-dcas-letter-templates.html

[gizmo111]

Who is the DMC?

Most DMP's are designed to pay off all your debt not write some off at the end.

[awaywithyoudebt]

Hi Blueda

 

Thanks for your email and for the attached templates which I'll definitely find very useful

 

Kind regards

 

 

awaywithyoudebt

[awaywithyoudebt]

Hi Gizmo111

 

Nice to hear from you. In answer to your question, DMC is just my abbreviation for debt management companies in general. So it's nothing to worry about.

 

Kind regards

 

awaywithyoudebt

[PGH7447]

No he asked who it is , is it payplan or cccs or is it a commercial company

[awaywithyoudebt]

Sorry, it's Payplan

[PGH7447]

Ok, in that case when you CCA the dca's etc payplan will probably get upset