** Do you have, or have you had a DMP with PAYPLAN? **

[sequenci]

We've heard a few reports that Payplan try and get those on DMPs to switch products, often to an IVA; have you experience of this? We're concerned as IVAs have significantly more implications and risks to consider than DMPs. Although IVAs can be a good option for some folks they are not always going to be the right option. In addtion, Payplan would make a lot more money from an IVA than they would a DMP.

 

Thanks.

[Gemma Burton]

Hello, I hope you do not mind us replying to your post. At Payplan we assess a client’s situation to determine what there circumstances are and what options they have available to them. Once a client is in a plan we will contact them annually to make sure that their plan is still suitable for them and they are maintaining their payments. As I am sure you are aware, peoples circumstances can change and this can mean that the route that they are on may no longer be their best option. It is then our duty to inform clients of this and present to them any other options available. This could be an IVA, if they are currently in a DMP, but we could equally advise them that bankruptcy is an option for them. Our main concern is always that the client is in a plan that not only suits them but is also sustainable for them with the aim to get them out of debt in the most appropriate way and it is never about how much money we make. I Many Thanks Gemma

[Wintry]

Hi Gemma

 

Welcome to the forum

 

Interesting thread

[spots1]

Hi ...use Payplan and have never ever been directed to anything other then normal DMP ....have all the faith in this FREE TO USE DMP ....perhaps our circumstances have not meant any other ways forward but I would welcome the choices if they were given....have nothing but praise for Payplan as all our creditors have been more than willing to go ahead with the offers made on our behalf ...KEEP UP THE GOOD WORK GUYS !!!!

[Clive.Watson]

Have previous experience with PayPlan a long time ago. Was on a DMP, but was advised against a Trust Deed (Scotland). Was a long time ago so can only comment from then. Really the opposite to what you were hearing, but I couldn't really say a bad thing about them other than they will not question the enforceability of Debts or try and negotiate a reduced settlement (again, from some years ago).

 

Have heard of other well known free Debt Management Firms going down this route purely based on them making more money. I wouldn't care to mention them by name due to legal implications - but your can thank the Tories for that

[sequenci]

I must add, Payplan *are* excellent at what they do, and I would never not suggest contacting them. Just keen to see if getting those on DMPs to switch to IVAs was a regular practice. Perhaps it isn't? Hence the post here. Both Payplan/CCCS are recommended for DMPs - and both (amongst others) are recommended for IVAs.

[Wintry]

I must add, Payplan *are* excellent at what they do, and I would never not suggest contacting them. Just keen to see if getting those on DMPs to switch to IVAs was a regular practice. Perhaps it isn't? Hence the post here. Both Payplan/CCCS are recommended for DMPs - and both (amongst others) are recommended for IVAs.

 

Hi

 

Basically they have to be better than companies who charge fees as all the monies paid in go towards paying off the debts with CCCS & Payplan, also there is none of this keeping the first couple of months payments business (I have heard that some of the commission / profit making outfits have been known get up to these sort of games:)

 

Oooh and then there is this 'flipping' I sometimes hear about, I came across one of those yesterday

 

There are other issues though, oh yes.

 

Once again these are just my opinions:)

[sequenci]

Right with you, Wintry. I've heard some absolutely horror storries with *some* of these fee-chargers.

[Wintry]

Hi Sequenci

 

You do occasionally read about how some of the profit making fee chargers 'claim' to work harder at freezing the interest & charges on Debt Management Plans, not sure myself if their success rate is higher or lower than CCCS & Payplan as I have never seen any official figures. To be honest in my opinion it is probably just another marketing tactic they employ and when you think about it taking the first couple of months payments not going to creditors or the like into account (if this is the case) and the regular monthly charges then they have to try to justify some advantages over CCCS & Payplan, just work out the figures on say a £400 per month Debt Manangement Plan with a fee charger.

 

People make up their own minds though at the end of the day.

Edited June 23, 2012 by Wintry

[Clive.Watson]

I always find the problem that with fee charging, non- fee chargers like payplan and charities like CCCS, it is always in their best interests to keep you in debt longer.

 

The whole thing stinks, so if you can you are better managing your own DMP.

 

If you should really be going down the IVA or trust deed route, or even any other formal debt solution, then only then would I get one of these organisations involved.

 

I have actually sat with a fee charging DMC with a relative and as soon as it was ascertained that bankruptcy was the only option, they handed her the LILA form and couldnt get us out the door quickly enough as there was no money in it for them.

 

Have also been recommended by a charity to go into a trust deed, when it was definetly not the best option.

 

So really, i think they all have a vested interest on the best option for themselves.

 

Just my opinion, but your better going it alone if you can