Back2credit

Kyzordz · 21 October 2016 at 3:44PM

Hi all,

I've been contacted by a company called back2credit saying they can put me on a debt management plan. This is something I was looking into anyway as I'm in a bit of a mess but I googled the company when I came off the phone and couldn't find much. I haven't signed or agreed to anything or given them any bank/card details luckily, 8' case it is a scam

Has anyone heard of them?

Thanks

sourcrates · 21 October 2016 at 3:50PM

Hi,

No, but they will most likely be a fee charging debt management company, the kind of leeches you really should steer well clear of.

If your looking to start a DMP, then you should contact one of the free debt charities for advice :

Stepchange
Payplan

or just for advice

National Debtline.

Both stepchange and payplan can set up a free DMP for you, wont cost you a penny, and has no risk involved with regard to your money.

A company you pay for a DMP can go bust at any time, taking all your money with it, which is why we recommend you dont touch any of them with a barge pole.

National_Debtline · 21 October 2016 at 3:50PM

Hi Kyzordz

Not necessarily a scam, no, but I wouldn't advise you to pay a commercial firm for a debt management plan. There are free alternatives, whether by using one of the debt advice charities or even negotiating your own arrangements with creditors. Paying fees does not give you any extra legal protection - in fact it's often quite the opposite.

Dennis
@natdebtline

fatbelly · 21 October 2016 at 5:14PM

They seem legit but only have interim permission from the FCA to trade.

http://fca-consumer-credit-interim.force.com/CS_RegisterSearchPageNew?accId=664891

They are open about their fees:

Initial set up fee which is 50% for your 1st two monthly repayments. For example if you are paying £100 on a DMP then the initial set up fee would be £50.00 for the 1st two months which would be a total of £100 set up fee.

Monthly management fee which is £32.50 or 16.5% whichever is greater subject to a maximum of £100.00.

I see no reason why you would use them in preference to stepchange or payplan.

katy_ann · 21 October 2016 at 5:49PM

I have not heard of them but if they charge a fee then I wouldn't go near them with a barge pole, I can't recommend stepchange enough, they were amazing with me and I have also heard fantastic things about PayPlan although I haven't used them

Kyzordz · 22 October 2016 at 7:47AM

Thankyou all

a few wasn't mentioned to me over the phone you see which is partly why I checked - I hadn't heard of them at all either which made me suspicious. I'll look into step change

to be honest I don't have a lot of debt but I have a bit to shift due to having some problems a few months back and missing some payments, which has now spiralled a bit. I wouldn't have minded paying a company to help me with my finances but it hadn't occurred to me they could go bust and I'd be left stuck!

Thankyou all for your help

Ilona · 22 October 2016 at 10:13AM

Kyzordz wrote: »

I wouldn't have minded paying a company to help me with my finances

Thankyou all for your help

No no no, don't pay ANY company to help you with your finances. As said above, Stepchange, National Debtline, and Payplan, and Christians Against Poverty, can all help you, with NO FEES to pay.

Ilona

poppasmurf_bewdley · 22 October 2016 at 11:04AM

In addition to paying fees, these sort of companies can go bust overnight, taking all your money with them. There have been many instances of this over the past year or so. Several not having made payments on clients behalf over several months despite the clients having made payments to them, leaving clients worse off overall.

And if the company contacted you initially via a cold call, then that is an even bigger warning sign not to touch them with a barge pole.

Back2credit

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free