First step Finance - **BANNED DIRECTORS STOLE +£6M**

[Poor-Credit Borrower]

Many thanks for both your responses. Yep, I think that debt settlers are not a DEMSA member. I coincidentally got another call from an advice centre that put me through to Gregory Pennington who, of course, are with DEMSA. But their fees are quite high, £32 per month for a total payment of £180. Not sure whether to go with them or try Bainst & Ernst or Harrington Brooks, for example. Think i tried Churchwood Financial about 4 years ago and found them a bit pushy, but mabe they've changed heir staff now. To be fair G.P. did give me holistic advice about other options, and even asked if a relative or friend could help me out with the money (although I said no).

 

Regarding contacting the creditors and doin the whole thing myself, it might work but it would be very difficult to judge whether/when to offer a reduced settlement after a period of time etc. Also DEMSA members would have, presumably, built up a good relationship at leat with the main creditors...

 

PCB

[42man]

Why do you find the need to use a company that charge fees when there are several that will not charge fees at all ?

[Poor-Credit Borrower]

Why do you find the need to use a company that charge fees when there are several that will not charge fees at all ?

 

Thanks 42man. There are two that don't charge fees at all, Payplan and the CCCS. are there any others? I guess the National Debt Line.

[42man]

Yes they are the only 2....so why do you need to use a debt management company ?

[Poor-Credit Borrower]

Sorry, I was also going to say that Gregory Pennington have mentioned that the ones that don't charge fees are funded by the creditors, so that if/when an individual does get into difficulties the creditors are likely to be less sympathetic in accepting reduced payments?

[42man]

I should add, why do you need to use a debt management company that charge a significant amount to do what Payplan and CCCS do for free ?

[42man]

They are bound to say that.....

[Poor-Credit Borrower]

Thanks again for your response. Do you think the CCCS would accept me if i made an application nearly two years ago, but decided for whatever reason not to go with them? the actual reason was that i made a half-hearted attempt to cancel with First Step Finance, but their "client support" group called me on my mobile and put me off from doing so. but this time, I'm going to send FSF a proper letter via recorded delivery to cancel, and as them to distribute all of my funds that I have in their "pot" without making hurried 'settlements'. Is that the best way, do you think? Then I could re-contact the CCCS...

[victoria_siempre]

Hi FC

 

DIY with CAG is best; CCCS s next, Payplan is third.

 

It's up yo u

 

 

x

 

 

v

[sequenci]

Sorry, I was also going to say that Gregory Pennington have mentioned that the ones that don't charge fees are funded by the creditors, so that if/when an individual does get into difficulties the creditors are likely to be less sympathetic in accepting reduced payments?

 

Typical fee-charging spin. Ignore statements like that.

[Poor-Credit Borrower]

Cancellation of arrangement with First Step Finance: I have definitely decided to cancel my plan with FSF, but it is a question of how to go about it. Have had a helpful PM from one of CAG's fairly regular contributors, who has suggested sending the letter "next day delivery" and not just recorded delivery. I'd like to send the letter TODAY if possible, but I could send it tomorrow and it will get there by Monday (have cancelled my standing order w.e.f. Monday 2nd April, and don't want to be accused of "non-compliance").

 

Should it go along the following lines:

"Dear Sir/Madam, I have been on the plan with yourselves since April 2009 and thank you for the work done with my creditors so far and settling many of the balances. However, I feel it is now time to move on with the management of my remaining unsecured debts. Please take this letter as a cancellation with immediate effect, and I would be grateful if you would forward all balances to be distributed amongst the creditors straight away, as per your terms and conditions, after the necessary fees that have already been incurred to yourselves. Please confirm how much of the money paid into my client plan is being paid to each creditor, as I know there is a sizeable amount in my account [i'll quote the figure from their latest monthly update to me, I think]. Yours faithfully, "

 

Many thanks for any help, PCB.

[victoria_siempre]

Hi PCB

 

It's a tad polite.

 

Why not demand your money back?

 

x

 

v

[Poor-Credit Borrower]

Hi Victoria

 

I'm not sure whether they would give the money back directly to me, if one looks at the T&C's on their website. I could say that I require any money in my account back to me, but if not to ask them to at least confirm they're going to distribute it to the creditors. But thanks for the suggestion.

 

PCB x

[victoria_siempre]

Hi PCB

 

Unless you push hard there might be a danger that they keep the money. Any such contract terms might be deemed as unfair by OFT and indefensible in court. A starting point would be to ask for your money back, an enquiry to OFT (who have an interest in DMCs); if you're happy that the money is disbursed to creditors then at least start from an argumentative position; and don't be so bleeding polite.

 

x

 

v

[nancysmile]

Oh I am so sorry I missed all this as I haven't recieved notifications that there were new comments on the thread.

I am going to PM you PCB :O)

Yes everything you are paying FSF to do (and paying alot) you can do yourself) Nancy x

[nancysmile]

I wrote a very good cancellation letter to FSF (helped by a CAGGER) stating that I was forbiding them to distribute any surplus 'pot money' once I had cancelled. They completely ignored this and made loads of payments and I ended up with a penny!!. They then told me they couldn't tell me who they had paid as they had detroayed all my data, choosing to answer some letters and send others back depending if it suited them....sigh. Idiots ....and a couple of weeks ago (as I still must be on their email list) they sent me an email recomending a Payday loan company......

[Poor-Credit Borrower]

Hiya, you mean you ended up with literally £0.01? An insult, to say the least, and most unprofessional of them to recommend a payday loan company, considering they purport to get people out of debt and not the other way round!

Edited March 30, 2012 by Poor-Credit Borrower
just a typo

[sequenci]

I wrote a very good cancellation letter to FSF (helped by a CAGGER) stating that I was forbiding them to distribute any surplus 'pot money' once I had cancelled. They completely ignored this and made loads of payments and I ended up with a penny!!. They then told me they couldn't tell me who they had paid as they had detroayed all my data, choosing to answer some letters and send others back depending if it suited them....sigh. Idiots ....and a couple of weeks ago (as I still must be on their email list) they sent me an email recomending a Payday loan company......

 

Did they put it in writing that they had destroyed your data?

 

Ensure you report them to the OFT and the Information Commissioner.

[victoria_siempre]

Hi seq

 

Although collectively necessary to add fuel to the fire, reporting Bandits to the Sherrifs is of little individual practical efficacy when 'we're all in this together' (as Dave and Nick say with contributions from Link).

 

This might be why CAG does not condone fee charging DMCs and advocates DIY with CAG.

 

x

 

v

[sequenci]

A complaint should be undertaken. Really. I certainly agree with the self-help ethos but this firm have been pretty naughty and need to be reported. I've seen with my own eyes plenty of examples of when the OFT actually turn the screw on these firms, although I really do wish they would do it more.

 

I think there could well also be a breach of statutory duty here too.

[victoria_siempre]

Hi seq

 

I couldn't agree more.

 

But, given that we now have more crooks than rats, for the sake of new folk I was merely offering a gypsy's warning.

 

x

 

v

 

PS Somebody has p*ssed me off today

[Poor-Credit Borrower]

Hi seq and victoria

 

I may well join in, in reporting FSF to the OFT, but will wait to see how they handle my cancellation letter. BTW I was very surprised last week to see that FSF are members of the DRF (Debt Resolution Forum), but when I called the DRF they said that the debt reduction company is 'under review' as have been 'minded to revoke' by the OFT and has been asked to 'clean up' their act. A lot of cleaning up evidently needs to be done!

 

PCB

[sequenci]

PS Somebody has p*ssed me off today

 

On here or in the 'real' world?

 

Hope it's nothing too serious.

[victoria_siempre]

Hi both

 

The Augean stables springs to mind.

 

It is not possible for anybody to p*ss me off here; as for the 'real' world, 'there is no such thing as objective reality independent of a knowing subject'.

 

Anyway, I'm off for Methi Gosht Gobi curry and a pint of Cobra.

 

x

 

v

[nancysmile]

Hello Sequenci and Victoria,

Oh my goodness if you could have seen some of the rubbish that I have had sent since cancelling, you would fall off your computer seats laughing. The only thing is, is that although I am clever enough to know it is all rubbish and lies I am not clever enough to know exactly what to do with it.

I did call the OFT and they said I had to write to them about mis selling. I also called the ICO and I downloaded a form to complete but I am unsure (and it needs to be in very simple terms for me) what each of these bodies does. I know I have to put a case to the FOS in a hope of getting at least part of my 8 k back but I am finding it very daunting so keep putting it off. I will have to act soon as the 6 months will be up since I recieved FSF final report. With my cancellation letter I sent a section 10 data letter which they said meant they had to detroy all my data. So ever since they have written to me at my address but then have refused to answer questions as they don't know who I am hahahaha........I know they haven't destroyed it as they will have to produce it for the FOS I am assuming. Also they cannot tell me (because they don't have my data) what charges have been taken off (but on the final report it is over 4K) and what payments they have made (since I exressly told them I wanted any monies back) In my original signed agreement there was nothing about any charges for all these other things. One good thing is I am very organised and have kept everything the bad thing is I ramble....sorry :O(

I would love someone who knows what they are doing to look over all stuff .... who could I get to do this for me ..any advise welcomed

Did they put it in writing that they had destroyed your data?

 

Ensure you report them to the OFT and the Information Commissioner.