MSE News: OFT crackdown on debt management firms

Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
in Debt-free wannabe
This is the discussion thread for the following MSE News Story:

"More than 100 companies face losing their licence after the trading watchdog uncovered a catalogue of abuses ..."
Read the full story:
OFT crackdown on debt management firms


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Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Consumers are expected to have paid £250 million in fees to debt management companies by the end of this year.

    Wow. Makes you sick doesn't it.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • samlawrie
    samlawrie Posts: 2 Newbie
    hi can you help me and my partner have just went with a debt managment company how do we know if its dodgy thanks
  • mallard
    mallard Posts: 265 Forumite
    First Post First Anniversary Combo Breaker
    Good news but how about the OFT cracking down on all the DCAs and the cronies that work for them as well as the debt collection departments of some of the major credit card companies - they cause untold misery for thousands of people!
  • lindann_2
    lindann_2 Posts: 272 Forumite
    Debt-free and Proud!
    http://www.guardian.co.uk/money/2010/sep/28/debt-management-companies-warned-closure-oft


    Pay plan whom we are with is ok.. its work taking a look, think FSA or OFT, is taking a look at some practices of companies...

    wonder these sound apply to those inhouse, debt collecting, like

    reliable collection, mackenzie hall and others too

    best wishes to all
  • Barricade
    Barricade Posts: 111 Forumite
    Nice find lindann!
    Perhaps the money grabbing debt management companies will now face closure!
    Geek by Nature.. Geek by Profession!
    Home Owner as of 01/10/2014
    Married to my Soul mate 15/06/2018
  • Barricade
    Barricade Posts: 111 Forumite
    the review is here: http://www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/OFT1274.pdf

    Unfortunately.. the OFT have also said this:
    OFT wrote:
    The OFT is not able to name the 129 companies because of disclosure restrictions under Part 9 of the Enterprise Act 2002. Where the OFT uses its formal powers under the Consumer Credit Act 1974 to refuse or revoke a credit licence, decisions are made public on the Consumer Credit Public Register.


    _Above_Report wrote:
    1.21 In some cases, it appears that business models may be set up to take
    the maximum amount of money from a consumer regardless of their
    circumstances.
    Shocking!!!!
    Geek by Nature.. Geek by Profession!
    Home Owner as of 01/10/2014
    Married to my Soul mate 15/06/2018
  • fermi
    fermi Posts: 40,546 Forumite
    First Anniversary First Post Combo Breaker Intrepid Forum Explorer
    Links to BBC comment.

    -> Firms 'exploiting' people in debt

    ->     'None of the money went to creditors'
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fermi
    fermi Posts: 40,546 Forumite
    First Anniversary First Post Combo Breaker Intrepid Forum Explorer
    samlawrie wrote: »
    hi can you help me and my partner have just went with a debt managment company how do we know if its dodgy thanks

    If it is not CCCS or Payplan and you are being charged fees, then you are throwing money down the drain and being exploited regardless of whether it was one of these 129.

    Switch to CCCS or Payplan. Everything you pay them goes to pay off your debts.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    If it is not one of the recognised charities it does not mean they are dodgy but as Fermi has pointed out they will at the very least be charging you for a service you can get for free from one of the charities :)
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    Let's hope we start to see some of the dodgy outfits actually having their licences removed then and not just threats and warnings - we need some strong action.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
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