Please help, probs with dmp company not paying creditors

[Guest FunkyChick81]

Hi guys,

 

I hope I'm doing this right and posting this in the right place (newby).

 

I have about 30k of debt through several credit cards (20k+) and a loan (originally 15k - now over 6k left).

Last may 2008 I signed up with global debt on a dmp as I had more outgoing than incoming, purely on debt, (live with parents still so no mortgage). Up until this point I had always paid the min on time every month without fail.

I have recieved up to 15 phone calls a day from the companies asking for money but according to my terms with global I am not allowed to be in contact with them so I am constantly on the phone to global each week asking them to sort this.

But the main problem is global - from the odd statement I recieve from my creditors it appears I am in more debt now then when I started from mainly fees and some interest as when global pay my creditors each month they either miss payments altogether or pay too late so I get fees!!

They also took my first 3 installments when I first started with them when it states in their terms they only take the first payment and when I question them about it they tell me its all refunded at the end of my plan??

I have never had a statement from them despite asking on numerous occassions and when i ask they say they'll post one out but yet I cant contact my creditors to find out where I am (debtwise).

All they have sent to me (twice) is a list of the amount they pay to each company - nothing else - no dates, no balances, nothing.

All my accounts have defaulted (something they advised wouldnt happen) and now I am receiving letters saying they are starting legal proceedings from the debt collectors.

I just don't know what to do now its all such a mess.

 

Someone told me to report them to the financial services ombudsman, what should I do?

 

Also I got a call the other day from a company saying they could get my debts written off under the unenforceable thing with the credit card agreement (as majority of my debts are agreements I took out years ago) for a small fee and is ringing me back to discuss it. She advised if their credit agreements do not comply with the cca act (or something to that effect) or they have ever put my credit limit up without my agreement the debt can be written off.

Now obviousley I would love to write off my debts, is this legal through another company? and can you do this whilst under a dmp with debts that have been sold on to debt collectors? especially as they are now talking court action and if I do this unenforceable thing will I have to go to court??

 

Sorry its so many questions but I am a bit baffled about all this.

Please, please can someone advise me what I should do??

I would be so grateful for any response.

 

Thank you in advance :confused:

[mjc007.5]

Hiya and welcome,

 

You are in the right place, others much more knowledgeable will I am sure be along but as a start:

 

• Speak with one of the free debt counselling/management services asap - CCCS (www.ccc.co.uk), national debtline (nationaldebtline.co.uk) or payplan (payplan.com). All very good (although CCCS particularly are credit industry funded), all sensible advice and will do you a DMP for free (they all have certain criteria, usually need between £50 and £100 minimum surplus income after your budget for them to take it on for you).
  
• Whichever one of the above you choose follow their advice in relation to what to do with your existing DMP company. I would think first get any monies they currently hold for you back and then cancel any agreement you have with them (can pursue for excessive charges and costs later)
  
• Report the DMP to relevant regulatory bodies (FSA and ? others - the cleverer folk will let you know)
  
• Write to all your creditors advising that you have been misadvised by the fee paying DMP company, have sought advice with whichever of three above you choose to go with, request their forbearance whilst you formalise transfer to the new company (they should usually give you some grace)
  
• Send probably all of them (but the prioritise the persistent ones first) the telephone harrasment template letter from the library on here by recorded post.
  
• DO NOT (sorry but needs emphasis) pay a "small fee" to a firm to "right off" your debt for you. They will not do this and still take your fee. If you want to go this route either let the good folk here show you the way or go for proper legal advice (most sensibly both)
  
• Pursue the fee charging DMP for compensation, time and costs
  
• Pursue the creditors that you have for refund of charges (if you go with another DMP from the three I have given you they will pursue this for you and it can have a very dramatic effect on the balances!)
  
• Most importantly (and probably most difficult) try not to let their threats get to you. Having attempted a DMP (allbeit, with hindsight, the wrong firm) your standing if any legal action is pursued should be fairly favourable.
  

Hope to have helped a bit and best of luck

[lozzzy]

Good Sound Advice by MJC!!

[PGH7447]

Hi and welcome to the CAG

 

Hi guys,

 

I hope I'm doing this right and posting this in the right place (newby).

 

I have about 30k of debt through several credit cards (20k+) and a loan (originally 15k - now over 6k left).

Last may 2008 I signed up with global debt on a dmp as I had more outgoing than incoming, purely on debt, (live with parents still so no mortgage). Up until this point I had always paid the min on time every month without fail. - out of which they take a slice ofr doing not a lot

I have recieved up to 15 phone calls a day from the companies asking for money but according to my terms with global I am not allowed to be in contact with them so I am constantly on the phone to global each week asking them to sort this. send these people the telephone harrassment letter see link below

But the main problem is global - from the odd statement I recieve from my creditors it appears I am in more debt now then when I started from mainly fees and some interest as when global pay my creditors each month they either miss payments altogether or pay too late so I get fees!!

They also took my first 3 installments when I first started with them when it states in their terms they only take the first payment and when I question them about it they tell me its all refunded at the end of my plan?? - stop using them then, they are taking money from your pocket, some of these firms are as bad as the DCA's

I have never had a statement from them despite asking on numerous occassions and when i ask they say they'll post one out but yet I cant contact my creditors to find out where I am (debtwise).

All they have sent to me (twice) is a list of the amount they pay to each company - nothing else - no dates, no balances, nothing.

All my accounts have defaulted (something they advised wouldnt happen) and now I am receiving letters saying they are starting legal proceedings from the debt collectors.

I just don't know what to do now its all such a mess.

 

Someone told me to report them to the financial services ombudsman, what should I do?

 

Also I got a call the other day from a company saying they could get my debts written off under the unenforceable thing with the credit card agreement (as majority of my debts are agreements I took out years ago) for a small fee and is ringing me back to discuss it. She advised if their credit agreements do not comply with the cca act (or something to that effect) or they have ever put my credit limit up without my agreement the debt can be written off. really you can do it for free yourself with a little perserverance

Now obviousley I would love to write off my debts, is this legal through another company? and can you do this whilst under a dmp with debts that have been sold on to debt collectors? especially as they are now talking court action and if I do this unenforceable thing will I have to go to court??

 

Sorry its so many questions but I am a bit baffled about all this.

Please, please can someone advise me what I should do??

I would be so grateful for any response.

 

Thank you in advance :confused:

 

What you need to do is send each dca a CCA request this cost £1 and they must provide the credit agreement within 12+2 days, send it with a £1 postal order and do not sign it, also send it recorded. - this is only used for credit cards and loans

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html letter N

 

Sebd each Original creditor a sar this cost £10 and they have 40 days to respond with all statements, then you can see if any charges have been added that you can claim back.

http://www.consumerwiki.co.uk/index.php/Subject_Access_Request

also send each dca or whoever is phoning a phone harrassment letter.

http://www.consumerwiki.co.uk/index.php/Debt::_Letter_Templates#DCA_-response_to_threats_of_home_visits

[Guest FunkyChick81]

Thank you all for your quick replies

 

should I go with a new dmp company like cccs first or send the letters out and pursue the creditors first?

 

Also do I send the cca request with the subject access request as the SAR letter asks for copies of all contracts?

May have to wait until payday for these as I have that many creditors.

 

Also if i report them to the financial services ombudsman this gives them 8 weeks to rectify the problem...

 

I'm just not sure which order I need to do these things.

[mjc007.5]

Hiya

 

There may be contrary views along but for my part I am going at this simultaneously - dmp, CCA requests where appropriate (either because I think there may be something in it or they are being unreasonable!) and complaining to the FSA . I am being open with CCCS and they are in the picture (only problem I have is they are a bit non-commital about if the disputed debts should be included or not!). Seems to me generally best to view it as a battle on several fronts simultaneously

 

The SAR is more comprehensive and may well be needed subsequently but for me the cost (I to have many creditors!) together with the longer time frame for their reply (40 days I think?) mean that I am holding off from this for now.

 

Keep going, deciding to sort it out and arriving here are a solid basis for eventual success

 

Bye for now

[Guest FunkyChick81]

Thanks Mj, I think I will follow your advice, obviousley if i can get the debt down, this would help me no end.

What did cccs suggest to you? (whether to include these debts or not) I would have thought they would have included them for now given that nothing has been declared as unenforceable or not?

 

Where are you up to on your quest? if you dont mind me asking...

 

Its nice to know there are others out there in similar situations

 

Cheers

[PGH7447]

golden rule

 

CCA the DCA

SAR the OC

 

if you go with CCCS they will not recommend that you fight any debts whether they are enfoceable or not

 

you can complain anytime, but again it is best to request the firms complaints procedure first and when they fail to respond then complain to the OFT / TS

[mjc007.5]

Hi,

 

Thank you very much to PGH - answered one important question that I had in my mind as to who get's what (even though trying to go on several fronts!). Interesting comment about CCCS as well - I am have not been sure how to take their non-commital attitude to the disputed debts. Almost seem to be presenting DMP as "do this and all the pain goes away" solution (which to a certain extent is highly desirable) but for some of them if I do not pursue it will become me feeling pain in a different way paying what they are not entitled to!

 

As to my quest Funkychic (liking the idea of a quest despite the serious and depressing nature of it all!) mixed success in early skirmishes. Some of the Payday loan companies either gone or heavily reduced due to irregularities (unlawful agreements, accessing my former account to an amount in excess of the maximum contract value), two "mainstream" credit cards failing to answer CCA requests and issuing dodgy defaults (gaining good advice from the more experience folk here on those). Some I think are going to be more difficult. Always approaching this with the attitude that even for the unlawful one's will be paying what was borrowed back (but at a pace that I can afford).

 

 

Bye for now

[Guest FunkyChick81]

Cheers PGH,

I might just hold off transferring the debt to cccs until I know if these debts are enforceable or not.

 

golden rule

 

CCA the DCA

SAR the OC

would I not cca the original creditors then? I send this to the debt collection agency instead? Or am I being a bit dim lol

 

MJ, I wish you well on your quest

 

cheers guys

[PGH7447]

you can cca the oc if you wish

[boss lady]

Hi

I know there are some good management companies out there, you were unlucky with the one you picked, but why use them when you can do it yourself.

I would check out your agreement and make sure you can cancel the agreement without penalties, but it seems to me you have to cancel it anyway, they are not helping you.

This company would be licensed by the Office Of Fair Trading, so I would threaten to take the complaint to the OFT.

The FSA does not deal with individual cases. I agree with mjc write to all your creditors and advise them that the DMP is no longer acting on your behalf as they had not fulfilled the original agreement. NEVER pay anyone to right off your debt, if your debt can be wrote off you can do it yourself.

 

If you have bank charges you can take action to get this money back, credit cards are probably unenforceable contracts so those debts can be written off.

Send requests to each lender for CCA and SAR this is very important. Avery important point send all correspondence RECORDED DELIVERY.

Also when you get paid back your charges keep your paperwork for I think 6 years because I had a DCA offering me a reduced payment, when I had won against Barclays in Court and they paid me back the unlawful charges. The cheek of the DCA. I know this must seem daunting now but with the help of everyone you will succeed.

[Guest FunkyChick81]

Thanks again guys for the great advice.

 

Ok when I send them the money for the cca and sar requests, how do I send this payment as I will be signing my name on a cheque? - it seems a bit risky.

 

Cheers

[mjc007.5]

Hi Funkychick

I have seen said in several places here never let them have your signature so I can see why you would be cautious. If not comfortable or happy with cheque I would go for any of the following:

Crossed postal order (no expertise here but I understand that this would be difficult to lift a signature off)

Get trusted relative or other suitable associate to write the cheques for the SARs and pay the relative

Arrive in person with fee made up entirely of pennies, hand over to suitable manager and insist that they sign for it (made this one up, must be time of day!)

Bye for now

[Guest FunkyChick81]

I talked to Global (the debt management company) and put in a complaint which they didnt do anything about, when I finally got in touch with my creditors it seems that I am owing more now, then what I was when I joined Global in May 08 due to numerous fees and interest and also lots and lots of missing payments from global.

I contacted FSO about this and they have registered the complaint and given them 8 weeks to respond. However, I received a letter from them this morning to say they are no longer trading and have transferred everything to 123 finance (which I have no details about), 2 days prior to this they took my payment (everything I have) and have not paid any creditors. Some creditors are missing up to 12 payments over the past 16 months.

I was about to cca my creditors but held off whilst the complaint was being dealt with as from what I've read you dont pay the creditors whilst doing this - Is this right?

My money has gone and my creditors are threatening to start legal action, I have nothing left to pay them this month.

 

My poor mum is in a worse mess as she has given them over 8k to settle her debts and it looks like they've run off with her money as she hasnt received any letters to say they arent trading anymore.

 

I just dont know what to do now, I am at my wit's end...can anyone help???

 

:(