Debt Management Companies

[sarahbishop]

Morning.

 

My sister has gone with a debt company.

 

I’m now very worried about her,

 

she got in touch with them in November 2012.

 

Started her monthly payments in Dec 12.

 

To date one of her debts has gone from 400.00 to 1200 and she is still getting letters not just from this creditor but all of them. And others have doubled.

 

They call her mobile and house line all hours of the night and day, sends her emails. She has even had men at the door telling her to pay up.

 

She is still paying SP Hayes in the hope that it will all stop.

 

She went to them because she was on the verge of a breakdown back in November .

 

Since then She lost her job in January not just because of the debts there were other reasons but creditors were calling her work daily,

she is currently living on £50 per week until she finds a new job.

 

I just hope they can hurry up and get this debt plan running smoothly as I thought the whole idea of these companies were to stop all the stress and help.

 

Whats your thoughts?

 

Does this really take this long to set up

[LaughingGirl]

Simply put, fee paying DMP's are completely pointless - if she doesn't feel able to manage her own DMP, she would be far better served using something like Step Change, where every penny sent goes to her creditors rather than paying a fee to the debt 'management' company.

 

As far as starting it in December but nothing really happening goes, I'm not completely surprised. My Mum entered into a fee paying DMP a year or so back, and when I reviewed her statements her first two months payments went to the debt management company as 'setting up' fees. It's entirely probable that the firms her debts are with haven't received a penny so far.

 

I would suggest that her first port of call should be the Step Change website, and then cancel her DMP with SP Hayes (who I don't seem to be able to find a website for!) as soon as possible.

[Crocdoc]

This i'm afraid is the danger with debt management, it all looks very glossy on the telly but the reality of these schemes can be very different. I woul suggest that she first of all confirms with the Debt Management Comapny that interest and charges have been frozen (In writing), DMP does not guarantee this and therefore it is not uncommon for the level of debt to increase.

 

In addition, your sister should do her utmost to reclaim charges and PPI on every account, assistance is available on site. (Never use claim management companies as this will simply lead to additional costs)

 

Your sister should also consider taking advice from a FREE MONEY ADVICE AGENCY as DMP may not be the best solution in her circumstances.

 

I assume the calls are coming from debt collectors, this being the case she should never enter into discussion on the telephone, this can be avoided by refusing to answer questions regarding date of birth etc.

Edited February 4, 2013 by Crocdoc

[Conniff]

Have moved you into the - Debt management and Debt self-help - section

[dx100uk]

DUMP THAT FEE PAYING DMP FIRM NOW!!

 

make a list of ALL the companies that were phoning her works

that's HARRASSMENT and they are NOT allowed to phone works number

 

you need to gather data for a COMPENSATION CLAIM.

 

can you get her up on here please?

 

dx

Edited February 4, 2013 by Conniff