MSE News: Beware fee-charging 'debt write-off' firms

Notsosavvy Friends of mine approached a company for a loan, and were transferred to a department (which turned out to be sister company) who could coordinate all loans - transpires Company charge monthly fee and make payments to lenders on their behalf however the company did not lend money simply short paid the loan/credit card providers and damaged Notsosavvy's credit rating. Friends provided details of one card each and it transpired that company took an administration fee from both cards, (£200 + £45) in one case Company made several attempts to ensure that they got some money within the account limit by starting with a request for £400 and droping to £45 as that was all remaining available within limit. After this the company issued the contract of agreement, paperwork which allowed cancellation within the 14 days but company reserved the right not to refund of admin fee even if the contract was not signed and returned. At this time friends sought our advice at it didn't seem right -
We reported the cards as lost so that no further payments could be taken.
Reading the Terms and Conditions we wrote as instructed and this resulted in one refund as it was within the 14 days but the other larger amount was lost.

The moral of the story is if it seems to good to be true it is too good to be true, if you are in financial difficulty or need financial advice go to a recognised provider or charity and of course use this site for help.