Are CCCS a good company

[gericke]

Hi all,

Been struggling for a while to pay the minimum payment on my credit cards,overdraft and car payment. Now having to borrow a little each month just to make the payments, so I've decided to get help.

I have filled in an on-line form with CCCS and it has given me the options of either a DMP or IVA.

Gave me an DMP option first when i put the car loan down as a loan, then after reading through the agreement i found out it was a HP agreement. Changed the details on the on-line form and my options changed to a DMP or IVA.

As i am coming up to the 50% payment point with the car HP agreement, i have the option to VT the car back to Santander.

I don't want a IVA, so the best solution will be a DMP i think, i've got approx £400 spare per month for repayments.

My question is,

Has anyone had dealings with CCCS ?, are they a good company to use - just so many of them out there now.

Just got a letter from Santander informing me that my credit card interest rate is increasing again and the Halifax called asking if i would like to do a "balance transfer" with them - just pushed me over the end - i know i've been stupid, but how easy is it to get more credit.

Any help or advice please !.

[Conniff]

Welcome gericke.

 

CCCS aren't a company, they are a Registered Charity and will help you without cost. You can of course donate if you want or can afford.

[silverfox1961]

CCCS (and Payplan) are the only companies that are funded by the credit industry and as such, most (but not all) creditors will deal with them.

My opinion is that I would go with either one as they don't charge a fee.

[dreadpiratesteve]

I used CCCS for my DMP over the past 18 months and have found them very useful, not only with me but with dealing with my debtors and negotiated freezing interest etc.

 

Do expect to be on hold as they are very busy most of the day!

 

As mentioned, they are one of the services that do not charge/ take money to line their pockets so every penny you send them goes to your debt!

[firstship]

You will find CCCS generally OK and a good launch pad to running your own DMP maybe 12 months down the road, once you see how the DMP system works.

 

You need to fill in their Income & Expenditure form and be realistic with what you put down, allow yourself sensible living expenses.

 

Do declare all debts as they can be quite difficult if you do not follow their rules .

 

Have used CCCS and in general they are helpful and what is more most Creditors are happy to deal with them.

 

FS

[findingthecheese]

Agree with firstship!

 

CCCS were a great 'starting point' especially if you're new to dmps and need a breather from your creditors! I found, like firstship, that most of my creditors were happy to deal with CCCS and didn't harass me once I'd quoted my CCCS reference number.

 

Once I'd found my feet, settled into my dmp and bolstered my self confidence I went the 'lone' route - CCCS are a good starting point, especially where you have numerous creditors/debts but you can't beat the feeling of being in control and doing it yourself.

 

ftc.

[gericke]

Many thanks for the replies, spoke to CCCS yesterday and they were very helpful. I have proceeded with a DMP with them as i've no experience and will need help setting one up.

I like the fact they do not charge a fee, and when i can i will donate as its a very valuable service for people faced with this problem.

 

Cheers again

[firstship]

Hi.gericke,Good Move, wish you all the best,it will take a lot of the pressure away

 

Regards FS

[kenchov1]

cccs are not a charity, they are funded by the banks... im not saying they are not a good company in fact they do a great job, BUT what they do is take youre money at the start of the month then pay it at the end of the month keeping the interest for themselves, they will always send you down the route of dmp when a IVA could be a better plan for you. I used a edited company and they are great

Edited December 17, 2011 by Conniff

[Conniff]

cccs are not a charity, they are funded by the banks... im not saying they are not a good company in fact they do a great job, BUT what they do is take youre money at the start of the month then pay it at the end of the month keeping the interest for themselves, they will always send you down the route of dmp when a IVA could be a better plan for you. I used a edited company and they are great

 

Yes it receives voluntary funding from banks, but it is a charity.

 

Consumer Credit Counselling Service is the operating name of the Foundation for Credit Counselling (FCC), registered charity number 1016630

 

Who you used are a VAT registered business and are in it to make money and for no other reason. Yes they might help you, but your debt will be paid off sooner with a non fee taking charity like CCCS.

Edited December 17, 2011 by Conniff

[firstship]

Ditto CCCS are a registered charity and yes they receive voluntary funding from the banks etc that is why they the OCs or DCAs are usually happy if you set up a DMP with the likes of CCCS.the most important item is they are FREE and all of your payments go to creditors,which surely has got to be better than paying commission/charge to a fee paying DMC

 

FS

[gericke]

Just an update to my situation, going to continue with my minimum payments to the credit card companies and meet my banks monthly overdraft charge while my dmp is being set up by CCCS. I have opened a new bank account with a bank that i have no dept with, ready for when the dmp starts. My question is, as i get my wages paid into my current bank account, should i change to my new bank straight away - need to inform my HR department by the 10th of the month of any bank changes, even before the dmp starts?. Started gathering all documents required for the dmp, should have them sent out to CCCS by mid January.

 

Gericke !.

[silverfox1961]

Hi

I would. It also gives you time for you banking to settle down especially if you have direct debits that need moving over.

[firstship]

gericke Hi ,I go with silverfox above,get your new bank account running,your DD and SO set up and your salary transferred to the new account.

 

I trust you are totally sure none of your creditors have any connection in any way with your new bank???

 

Good luck with CCCS

 

FS

[gericke]

Hi all, i'm fairly sure they don't - my list of CC creditors are:- Santander, Tesco's, M&S, Barclaycard, Halifax & Capital One. A bank overdraft with the Halifax and a HP car loan with Santander.

My new bank account is with the Yorkshire Bank as when i searched online, i couldn't see they had any links with my creditors ??, correct me if i'm wrong.

Next question is, i have a joint account with the Santander with my wife - my wife never got round to changing it from her maiden name and we also have our mortgage with them - should we switch this account to the Yorkshire bank too ???. Extra info, taking the dmp out on my name only as all cards, bank and HP loan are in my name only.

Many thanks for the advice everyone .

[firstship]

Perhaps it would be a good idea to make a clean change to Yorkshire for both of you.They have no connection with the names you have listed

 

You state all the debts are in your name,on this basis if you agree have separate bank accounts,(you may receive alternative advise on this)

 

FS

[silverfox1961]

Having a joint account makes both parties equally liable for a debt incurred by one of the parties which is why I would recommend you separate accounts

[Guest Peer Lawther]

Hi all,

 

Thank you for the support of our services - it's always appreciated.

 

To note, we don't take public donations, but thank you for your kind offers. We recommend that should you wish to donate to a debt charity, that you consider our sister charity Credit Action.

 

Regarding gericke's question over his joint bank account: we would also recommend moving the joint account away from Santander, to avoid them taking money under the Right of Offset.

 

To clarify "[we] will always send you down the route of dmp": only 10% of those who contact us go on to start a repayment plan. The voluntary donations we receive from creditors for that work supports the debt help we provide to the other 90% (nearly 400,000 people a year). If you ever fancy reading more about it (I admit it's perhaps not the most interesting subject) here's written evidence that we submitted to Parliament last month.

Edited December 20, 2011 by Peer Lawther
Text size change

[Conniff]

I think your link needs more prominence Peer so if you don't mind, I am repeating it in full.

 

 

This really is something everyone with a debt problem who are thinking of seeking help should read. It's not long and will only take a few moments but will be decisive in showing you why your first call should be madel to CCCS and not a private company.

 

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/writev/1649/dm16a.htm

Edited December 20, 2011 by Conniff

[silverfox1961]

Well I never knew that about Payplan. As a company it depends on profits so it is bound to cherry pick the help it gives.

 

While CCCS had issues helping people with little money to spare previously, I notice they are starting a token payment scheme which (in my opinion) can only be good for the debtor

[Conniff]

Agree fully with the token scheme, that is a wonderful step forward.

[gericke]

Hi all, hope everyone had a good Christmas. Not done much over the Christmas, sent of my DMP application to CCCS and today sent off letters to x3 of the credit card companies informing them of my proposed DMP with CCCS - only another x4 to go. As i have a overdraft which is part of my DMP, should i wait until my new bank account is 100% up & running before sending off a letter to them ?.

Also, if I'm to close the joint bank account that i hold with my wife, I'm not going to be able to make the minimum payment on all of my Credit cards this month- my question is :- should i try and make 50% payments or just token payments so i have the money to pay off the overdraft on the joint account so allowing us to close the account ?. Many thanks for the advice and guidance.

Gericke !

Edited December 30, 2011 by gericke

[Frog Escalator]

Hello Gericke

 

I have been with CCCS for nearly two years. They were a great weight off my mind to begin with, but (nearly) two years down the line, and paying crippling amounts each month, I found that one of the debts has gone up by MORE than the £2000 I have paid that particular creditor in that time! CCCS do not look kindly on you having any life to speak of beyond eating basic food, travelling to work and back, paying your gas/elec/water/council tax and toothpaste etc. That last sentence is only mild exaggeration. They allow you a minimal clothing/shoe budget (for wear and tear), and I've heard people say they don't allow you to spend more than £1 on lunch/or tell you you have to take a packed lunch to work, for example.

 

That in itself isn't such a bad thing if you're trying to save money, get out of debt and get back on your feet. However when you're looking at 15 years or so in a DMP paying amounts that make life a real struggle (forget holidays of any description for 15 years, no matter how hard you work) -- scraping by, buying the cheapest food, and then when a year or two on, you look at the amount you've paid into the DMP (about six grand in my case) and you see how little the debt has gone down by ...

 

I have just worked it out right now, using the most up-to-date statements from creditors. Some aren't very recent as some creditors stopped sending any statements about six months ago (but still continue to send periodic threatening letters), but comparing my CCCS statement (which shows exactly how much I've paid into the DMP, and how much to each creditor) and the actual most recent statements from creditors, here's how it looks

 

(rounded figures)

Original total debt at start of DMP: £50,000

Amount paid into DMP with CCCS in about 20 months: £6,000

Amount by which my total debt balance has actually gone down: £416.

 

Yep, that's right folks. I'd have been better off stopping payment altogether and flushing five thousand pounds down the toilet. Even then I'd be £500+ better off than I am now!

 

Forgive my sarcastic and hopefully not too irredeemably bitter tone(!) This is the first time I've seen the actual numbers in black and white and it's making the colour drain from my cheeks! Some of the creditors did indeed stop interest and charges early on, but this was more than compensated for by the likes of Lloyds TSB and others who just continue to whack up interest and charges.

 

The only advice I could give to you Gericke is: do not leave it a year or a year and a half before taking stock again. By all means take a few months to get yourself some breathing space. But I waited until just the past month or so to get my calculator out again, and while the CCCS payments were more manageable than keeping up minimum credit card payments before defaulting (impossible), they still left me with practically no spare money. And despite living a life of near poverty, and despite paying £6000, only 7% of that six grand actually has gone towards making a dent in the overall debt.

 

I've only recently joined/started posting on CAG as I came on here to try to ask advice and look for alternatives to 14 years of this insanity. I've decided to take the plunge with looking into CCA [Consumer Credit Act] unenforceability. Even if some of the debts end up being enforceable (a likelihood), if I stop payments altogether while I push creditors to produce the paperwork (putting the accounts and payments on hold while they're looking for it) and save up another six grand (or say four grand and have two grand to make life a little more comfortable, like being able to treat myself to a pint of beer once a week), I could very well have been able to offer Full and Finals to some of the creditors and be rid of some of the debts and creditors already rather than chucking five and a half thousand pounds completely and utterly down the toilet that this DMP has been.

 

Your situation may well be different (although your £400 p/m figure available income was similar to mine), but as mentioned above, please don't leave it a whole year before reassessing things and checking with creditor statements to see how much of an impact your DMP payments actually have or haven't made on your overall debt.

 

I hope though you've started the New Year with a big chunk of the pressure of minimum payments lifted though now that the DMP will be starting to work!

 

All the best!

Frog E

Edited January 7, 2012 by Frog Escalator
typo -- lots of typos in this long post -- so lots of corrections..!

[gericke]

Sorry to hear of your troubles frog escalator, would have hoped to have paid a little more off than that after nearly 2 years of being on your dmp. On the paper work i have received from CCCS it shows that the expected repayment period being 8yrs & so many months, when my HP car loan is finished in 2yrs time this expected repayment period drops to just over 6yrs.

I understand that this is only if all creditors freeze interest, which i hope most will ???.

At the moment i can only meet my minimum payments by borrowing more, so the dmp payment means no more borrowing, reducing my dept (even if by not much) and having some money in my pocket for a change, yes its going to be very little, but it will be a lot more than i've had for a very long time.

Most likely have a different view 2yrs down the line like yourself, have any of your creditors frozen interest - which one's have not !.

[Frog Escalator]

Hello again!

Ones that stopped interest:

Capital One, RBS, MBNA (eventually).

 

Ones that didn't:

Lloyds TSB, Halifax, Sainsbury's.

 

It's because of the interest and charges of those latter three that I'm in no better a situation than I was two years ago, despite going through CCCS and despite doing a DMP.

 

But even with the recent realisation of this ridiculous situation (I knew the monthly DMP payment was becoming a struggle a few months ago but didn't really have a clear idea of the figures until very recently), I'm actually feeling very positive now, knowing that I'm going to stop paying the DMP, and therefore stop paying the creditors until they come up with enforceable agreements -- and by the time they do, and then by the time they start threatening court action for real (that is rather than the might and maybe bluff and fluff), I'll have been able to save up money and put it aside for F&F, rather than chucking 93% of the money I paid through CCCS each month into the coffers of Lloyds, Halifax and Sainsbury's!