Very Scared

[ryanslassie]

Hi

I have been really stupid and wondered if you can provide me with any advice. My story as is follows :

I have debts of around £27000 and started an informal agreement with Spectrum Financial Protection based in Keighley Yorks 5 years ago. I have been paying a nominal sum to each of my creditors for that time. I was advised at the time of entering into this arrangement that had to pay the company £233 for a period of three months to enable them to set up the arrangement which I duly paid. I was then advised to save as much as I could each month and that I would be able to cash in my endowment at the end of the period of five years and with my savings and cashing in of my endowment policy I would be able to use this to make a Full and Final Settlement payment.

Unfortunately I have not been able to save a lot each month but have managed to save around £5,000 and I have contacted my endowment policy company who have told me that instead of having around £11k to cash in that I would only receive around £4k due to the economic crisis. My original endowment policy was for £34.5k and is now valued at £14.6k.

I know that this will not be enough to pay off all of the debts.

I am scared to call the company in question as I do not know what will happen, yes I am a bit of a coward and I havent told anyone about this. I know I am not helping myself.

Any advice would be gratefully received as I am going out of my mind with worry (all my own fault).

Thanks

[blueda]

Hi ryanslassie and welcome to cag, Is Spectrum Financial protection a debt management company ?. You might be able to claim the endowment company for the shortfall depending on the terms and conditions.

[ryanslassie]

Hi Blueda

Yes Spectrum is a Debt mgt company. I entered into the agreement not knowing much, it sounded like a good idea at the time. I have done some sums tonight and I feel alot better, I have called the endowment company and have been give another surrender value of £8k, was mis informed the last time I called (!!) and with my savings I can afford to pay my creditors 50%, do you know if they will accept this ? I am going to call Spectrum tomorrow regarding the F & F payments and see how the land lies. If the creditors do not accept this then I think I am stuffed. Thanks

[blueda]

From your post it looks like Spectrum have not done much for you, a debt management company should take payments from you and arrange and make payments to your creditors and hold surplus funds excluding their monthly administration fees towards making settlement with your creditors. Sometimes a creditor will accept a reduced payment as full and final payment. I advise you to not hurry to a decision with your endowment and get advice from this site, as i am sure a member of site team will be along to advise.

[IdaInFife]

Have asked to see if there is anyone around that is knowledgeable with endowments.

 

But your DMP woul have been making payments towrds your debts as well?

[citizenB]

I am not sure if the following BBC report will help in anyway.

 

Were you advised that there would be a shortfall on your endowment ? If you had a specific amount you were saving for and it failed to reach that amount then it might just be possible you were mis sold the policy.

 

http://news.bbc.co.uk/1/hi/1887292.stm

 

Could be worth looking into.