DMC's 'holding on to clients cash' ?

[Guest]

for info, if not seen already!

 

abridged;

 

Some debt management companies have been holding on to clients' cash rather than paying it to creditors, a BBC investigation has found.

The practice has left heavily-indebted families thousands of pounds worse off.

The Office of Fair Trading (OFT) has condemned the practice as "totally unacceptable" and has promised a crackdown.

One senior figure in the debt management industry says 10,000 people could be in danger from the practice.

If a firm goes out of business and client funds are not kept in a protected account, some or all of the money is likely to be lost.

 

http://www.bbc.co.uk/news/business-13568152

Edited May 27, 2011 by Ford
typo

[citizenB]

We do try and get the message out there. You DO NOT have to pay a DMC, there are free services available and with a little effort, people can do their own DMCs.

 

The fees charged by these companies could be going into paying off debts..

[Guest]

bump

 

also, oft consultation announced re credit brokers and debt management co's.

 

[ATTACH=CONFIG]28004[/ATTACH]

[Guest]

also, revised

debt management

guidance just published for consultation

 

OFT1338con.pdf

 

[minus-millions]

Stupidly falling foul to sales patter I paid Gregory Pennington Financial Mangement Company £3700 over a number of years to clear less than £3000 of debt DESPITE being perfectly uptodate with my numerous creditors and having an excellent credit rating . Eventually a friend learned of my arrangement and insisted i contact my original creditors directly .

 

Then the nightmare began . The £3000 i owed had increased to around £20,000 , i had been defaulted by everyone and my credit rating was in tatters . I cancelled the agreement and spent the next 6 years in poverty paying off the debts (debts i had already overpaid) . 10 years later i still have a poor credit rating which resulted in my accepting a mortgage (the only one i could get) which barely falls short of criminal with regards to charges and interest rate .

 

Ultimately my joining a financial management company whilst having an A1 credit rating has resulted in a lifetime of acumulated losses .

 

Send them to prison !

[BRIGADIER2JCS]

Did you try to recover anything from GP?

[rondodiver]

Seems to be a common theme my Father was with a DMC (Spectrum) sadly he died a short while ago and we have found out he now owes more than he started with orginally. Its a sad state of affairs, DMC's they need to be completely banned or at the very least severly regulated and scrutinised, some of them are as bad as the DCA's imho

[Guest]

.....The £3000 i owed had increased to around £20,000 ..........!

 

[BRIGADIER2JCS]

There must be an urgent review of the way these companies exploit

debtors, and with hold payments to creditors, whilst pocketing most of the payments

made.

 

It's time that the OFT should be looking at debt management licenses in view of this and urgently.

[Guest]

rondo

 

just had a brief look at your thread - out of c 23£ p/m -> 4£ to the creditor and 18£ to the dmc!

 

caggers, beware. if involved with a dmc, check what's going on!

[rondodiver]

Ford

 

yes exactly absolutely scandalous and I seem to not able to do a thing about it now. although I shall try just to try and get some justice for my Dad

[BRIGADIER2JCS]

You must complain to OFT and FOS on this give them ALL the figures it's disgusting that

they can get away with this.

Please write to your MP with all the details of the DMA and what has occurred.

[Guest]

hi all

thanks all for posting on this. this is an important issue imo that needs to be highlighted. it's clear that it is not an isolated matter. it's not just the creditors trying to rip us off! the oft have promised a 'crackdown'. hopefully they will deliver!

as brig says, complain officially if you can.

imo

[BRIGADIER2JCS]

I do not believe there is any ''IF'' to complaining !!!

[Guest]

I do not believe there is any ''IF'' to complaining !!!

 

(semantics? ) you know what i meant!

Edited July 3, 2011 by Ford
typo

[BRIGADIER2JCS]

I this area you can always complain....even failed complaints are recorded.!!!!!!!

[Guest]

for info

one dmc licence recently revoked

http://oft.gov.uk/news-and-updates/press/2011/77-11

[BRIGADIER2JCS]

for info

one dmc licence recently revoked

http://oft.gov.uk/news-and-updates/press/2011/77-11

 

Now if only the OFT would deal with the avalanche of threats and intimidation in the same way

thing I think would rapidly improve.

[Guest]

for info

 

'The OFT has taken action against a further three debt management businesses as part of its ongoing enforcement work in the sector.'

http://oft.gov.uk/news-and-updates/press/2011/109-11

[BRIGADIER2JCS]

Not before time either Ford, there

is a mine field of these vulture

companies springing up all over

the country back street users

out to fleece people who are

already in serious trouble.

[Guest]

interestingly, one of the 'three' is the well known 'The UK Insolvency Helpline' ! (Money Advice Direct)

Edited October 14, 2011 by Ford
typo

[BRIGADIER2JCS]

Just demonstrates one cannot trust TITLES Ford.

[Wintry]

Not before time either Ford, there

is a mine field of these vulture

companies springing up all over

the country back street users

out to fleece people who are

already in serious trouble.

 

Hi BRIGADIER

 

Too true

 

I came across three relatively new outfits in our area only last week (I kid you not)

 

On the recommendation of a friend a person with serious debts had contacted of one these outfits and was advised that an IVA was the best solution and referred on to an IVA Company after presenting their £250 fee.

 

After suspicions that he might not have been given lets say ' not excactly what you would call 'independent impartial advice' (it appears that nothing else other than IVA was discussed) he contacted another outfit who then told him that it was bad advice to go for the IVA and that bankruptcy was the best option....the punch line being that they then said "they could help with bankruptcy for a fee of £1000 plus the bankruptcy £175 court costs and the £525 O/R fees"

 

Further confused and after speaking to another friend he then went to a free advice agency who are now doing his bankruptcy including the forms for free.

 

Yes it is most definitely still going on and if this turns out to be a trend then despite the OFT so called crackdown, guidelines, protocols or whatever, basically in my opinion they might as well be pxxxxxg in the wind.

 

It looks like night flight bookings are set to rise again.

 

People and families in debt along with the stress and worry that goes with it deserve better than this kind of rubbish.

Edited October 13, 2011 by Wintry

[BRIGADIER2JCS]

I helped a relative who rushed in to

a DMP for a Welcome debt that had

never been defaulted, but passed to a

DCA, the DMP was taking 66% 0f the

monthly payment, worse than welcomes

interest rates by more than 50%.

[Wintry]

Hi BRIGADIER

 

Good god!

 

Bet they also told him how passionate they were about helping people in debt.