Debt management companies to AVOID

[helenram]

Hi, I'm thinking of looking into getting a debt management company and wondering if anyone had experiences of companies to avoid? Which companies will hound me on the phone just to get me to sign up and which ones have the worst fees and agreements? I don't want any harrassment from shopping around. Which ones should I avoid giving my contact details? Any advice would be most greatful. Things are really tense at home cos of my debt and I don't want the debt management company adding to the trouble my partner and I are having dealing with this.

 

thanx x

[sequenci]

don't go with ANY who charge.

 

CCCS or Payplan are the ONLY ones to consider, they offer a free service.

[PKea]

Im with Payplan and would recommend them

Totally FREE service and they will deal with all your creditors and negotiate on your behalf.

 

Paul

[bongobaz]

dont go with Eurodebt!!!

they are a rip off!!

[southcoastgirl]

Go to National Debtline's website (just Google it) and download their information pack, or give them a ring. It's brilliant and it's FREE! They can advise you about debt management plans that don't cost you a percentage!

[spuddly]

Baines and Ernst were charging me over £80 a month for 2 years thats £1920 which could have gone to paying off my creditors. until i wised up and went with CCCS who dont charge for the same service...

[gizmo111]

As said above do not go with anyone who charges - Payplan and CCCS do not charge.

 

Are you sure that a DMP is the right thing for you.

 

Have a read here http://www.consumeractiongroup.co.uk/forum/general-debt/56970-insolvency-dealing-debt.html

[helenram]

That's brilliant. Thank you all so much for your help. Will have a look at CCCS and Payplan! I feel like I'm at the foot of the mountain!

[sequenci]

lots of help here to get you over the mountain.

 

it might be worth giving one of the debt help charities a call too.

 

CCCS: 0800 138 1111

National Debtline: 0808 808 4000

 

both free calls

[WormHasTurned]

Just to confirm - there are free services like CCCS which creditors immediately respect.

 

Whatever you do, DON'T pay for it

[vandermerwe]

Hi helenram

 

Any progress with debt management companies recommended?

 

We need your experiences on the thread.

 

Hope it's been good news for you.

 

Regards

 

Van

[dannyboy660]

Whatever you do, DON'T pay for it

 

My dad told me that years ago when I was in my teens.

He also said "If you're not in bed by 10PM, you might as well come home".

 

 

 

:p

 

Sorry. It's been a funny day........

[powelll]

He also said "If you're not in bed by 10PM, you might as well come home".

 

I think I know your Dad lol

[conradsfate]

my dad has a debt management account. a place called GREGORY PENNINGTON. they charge him over £25.00 a month. they ask him occasionally to increase his payments to get his bills of quicker. but i noticed everytime he did (as he wants them paid of) the money for gregory penningtons fee goes up to.

[powelll]

my dad has a debt management account. a place called GREGORY PENNINGTON. they charge him over £25.00 a month. they ask him occasionally to increase his payments to get his bills of quicker. but i noticed everytime he did (as he wants them paid of) the money for gregory penningtons fee goes up to.

 

Your Dad isn't legally tied to this agreement with GP. He can end it at any time in writing & switch to one of the free servcies ( like CCCS or PayPlan ). Just in case he wasn't aware...

[conradsfate]

 

thankyou, ill get him to do this right away. he did not know you could get this service for free.

[Poor-Credit Borrower]

Hi, so you don't think that *any* debt management programme where the customer pays a fee would be beneficial? Would commercial DMP companies be any better than the CCCS or Payplan at freezing interest to creditors and getting them to accept a reduced pro rata payment ased on affordability?

[gizmo111]

Hi, so you don't think that *any* debt management programme where the customer pays a fee would be beneficial? Would commercial DMP companies be any better than the CCCS or Payplan at freezing interest to creditors and getting them to accept a reduced pro rata payment ased on affordability?

 

It is pointless paying money for something that you can get for free, when this money could go o your creditors. Both paying and non-paying companies have an equal chance of freezing interest.

[sequenci]

Both paying and non-paying companies have an equal chance of freezing interest.

 

I don't beleive this to be true. Many lenders have expressed that they are more willing to accept payments if they come via the one of the free providers, especially since a lot of the time these lenders may be part-funding the free provider that you choose.

[naughtykitten]

I don't beleive this to be true. Many lenders have expressed that they are more willing to accept payments if they come via the one of the free providers, especially since a lot of the time these lenders may be part-funding the free provider that you choose.

 

That is completely true!

 

Advice from lenders is always to go with a free service provider Payplan, CCCS.

 

Like most people have been saying on here, any money paid out in fees to a company is money that could be going straight towards the debt itself. these companies who charge to help you pay your debts are exploitative & prey on vunerable people. They make me so mad!

 

Gregory Pennington & Eurodebt are well known for being awful companies. They will keep increasing their fees so that you are fooled into thinking that you are paying off your debt but in fact the majority of the money you pay out goes to them & your debt never really gets any smaller!

 

& like I said already, most lenders are reluctant to deal with these companies as they are very unhelpful & will always advise you drop them & go to a free provider. These companies that charge will advise you to not speak to the lenders regarding your account as they know that the lenders will tell you to get rid of them!

[Poor-Credit Borrower]

Hello naughty-kitten, good to hear from you!

 

A lot of what you say makes sense, thank you. One thing that has been mentioned by one of the 'paying' debt management companies is that the free ones such as Payplan or the CCCS tend to pay more proportionately to a certain creditor if the actual creditor funds/sponsors them than if they do not. Is there any truth in that, or would they work on a strictly pro rata basis?

 

On a slight change of tack I'm thinking of actually go on to an IVA, as I have about £14,500 in debts spread over about 14 or 15 creditors and have been asked to pay £200 per month (over the statutory period of 5 years. I don't suppose you'd be able whether or not to do this, not knowing about my individual finances!

[sequenci]

One thing that has been mentioned by one of the 'paying' debt management companies is that the free ones such as Payplan or the CCCS tend to pay more proportionately to a certain creditor if the actual creditor funds/sponsors them than if they do not. Is there any truth in that, or would they work on a strictly pro rata basis?

 

Hello there. The fee-charging firm have told you a lie there, both payplan and cccs work on a strictly pro-rata basis. I can 100% guarantee you that as I work with both firms very closely!

 

On a slight change of tack I'm thinking of actually go on to an IVA, as I have about £14,500 in debts spread over about 14 or 15 creditors and have been asked to pay £200 per month (over the statutory period of 5 years. I don't suppose you'd be able whether or not to do this, not knowing about my individual finances!

 

 

You need at least £15k for an IVA, are you aware of the implications? Do you own property? How much are you liekly to have a month to pay into it?

[Poor-Credit Borrower]

Hello sequenci, thank you very much for your reply.

 

I have had a call from one of the private debt management companies based in Manchester. Said to them that I could pay £150 a month to the CCCS, without any cost to myself, for a plan and they would negotiate with creditors and try to freeze interest. Then this debt management co, that charges two months' set-up fee before anything goes to the creditors, said that may be true - but the difference is that the CCCS is funded by the creditors so "works for them" whereas they would be "on our side", meaning being on the side of the consumer. They also said they are "trained" to negotiate with the creditors, but do you think that payplan and cccs are equally good at e.g. freezing interest.

 

Regarding an IVA, my debts are only just under £15k, but MoneyExpert said I could still be accepted onto an IVA with the number of creditors (about a dozen) that I have. They are asking for £200, which is the minimum payment possible - but actually I'm already paying £200 to Sterling Green (DM company). I own property, but only have £20k equity left in a property that's worth £180k. I know that could *in theory* pay off the unsecured debts, but house prices are likely to drop further in the foreseeable future aren't they? There are advs and disadvs in an IVA: adv is that I can't get any further loans and pay debt off in 5 years, disadv is that my credit scrore would actually plummet to zero during the IVA and I wouldn't even be able to get a re-mortgage.

[sequenci]

but the difference is that the CCCS is funded by the creditors so "works for them"

 

This is just a sales pitch. Payplan and CCCS do not work for anyone of such, they simply offer a free DMP. The creditors would actually be MORE receptive to agreeing payment terms with them over a fee-charger due to the fact that they are getting a reasonable share of your surplus and a firm is not taking a cut for themselves.

They also said they are "trained" to negotiate with the creditors

LOL, and CCCS and Payplan are not? What ever next?

 

do you think that payplan and cccs are equally good at e.g. freezing interest.

I would say better in my experience of advising HUNDREDS of clients.

 

If you have property I would steer very clear of an IVA, it is VERY likely you will pay 100% of the debt back.

[Poor-Credit Borrower]

Hi again, Sequenci

 

> LOL, and CCCS and Payplan are not? What ever next?

 

yeah LOL, if one thinks about it...

 

 

> I would say better in my experience of advising HUNDREDS of clients.

 

thanks I will do my best to take your advice then

 

> If you have property I would steer very clear of an IVA, it is VERY likely > you will pay 100% of the debt back.

 

that is frightening then. Does that mean that I would have to pay the Nominee's and the Supervisor's fees IN ADDITION to the net debt that I owe to the various companies, in all probability? If so I had better cancel the initial £200 that I have sent to the provider for them to convene a "creditors' meeting" for acceptance/non-acceptance.

Edited November 25, 2008 by Poor-Credit Borrower
missed out one word