Step Change Settlement BEWARE

[concerned12]

Hello

 

Not sure if this is common knowledge but Step Change appear to be doing a settlement scheme for debts. I will use hypothetical figures.

 

Lets say you owe a combined amount of 11,000 they will confirm a minimum requirement for them to work with you say 7,000 (approx could be slightly less)

 

Now the reason I would consider using a Debt Management company would be that they say on their blurb they have all their best experts in this department and have contacts, negotiating skills etc so it might be a bit over the odds but may be more successful reaching a settlement.

 

and here's the rub.....

 

They say you would need to send them the 7,000 and they would forward it to the creditors pro rata BEFORE any negotiations have started!

 

If the creditors decide they do not want to accept it as a final settlement, then they can just keep it!

 

So can you tell me if given a lump sum of 7,000 a debt agency would say "That ok mate its not what you owe, but I will let you off anyway and I really don't want't you to keep paying the 100.00 dmp you have been paying anymore....or is there a likelihood that the debt collection agency might just say "Thank's for the 7,000 we reject your offer and by the way, can you keep paying the 100.00 a month on your dmp.

 

Step change were upfront about the fact they hand over the money regardless but I find it hard to get my mind round the fact that for me they should be negotiating a settlement and only sending the money if it's a guaranteed agreement.

 

Of course go direct and offer. Just thought this might be of interest

[citizenB]

Well for sure if I were trying to negotiate settlements under my own steam, I wouldn't hand any money over until I had guaranteed written confirmation that what I was paying was a full and final settlement ?

[concerned12]

Well for sure if I were trying to negotiate settlements under my own steam, I wouldn't hand any money over until I had guaranteed written confirmation that what I was paying was a full and final settlement ?

 

Exactly I am just wondering who would use this service and a heads up to anyone new to all this and that maybe has a DMP with Step Change (Which is very good) to beware of this service

[SabreSheep]

NEVER USE A DEBT MANAGEMENT COMPANY

 

Some of them are run by debt collection agencys

 

They will charge a fee and or missappropriate funds

 

They do nothing that you can not do yourself.