Debt Management Company not helping

kristeenL27

I wonder if someone can offer me some advice? My husband has about £65,000 credit cards debts [which are in his sole name], and three months ago he engaged the services of a debt management company. The idea was that they would relieve us of all the stress of managing the debt, and would communicate with the companies for us. We paid them £250 and they said that eventually my husband would have to go bankrupt and upon that,and the repossession of his flat and his car, we would have to pay them £2,000. My husband agreed [although I did not] and signed all the paperwork. Three months have gone by, and we have still received chasing and threatening letters and phone calls from all the companies, and now finally, the DMC has come up with a payment plan, and they say we have to now make standing orders to all the companies, even though the creditors have not agreed to accept reduced payments, and are still charging interest and late payment fees every month. I am very worried about the situation - I feel as if we are paying the DMC for nothing - we probably could have made an offer of payment ourselves, and possibly got at least some to agree to freeze interest. What can I do? Am I right? Should I speak to my husband , and if so, what advice can anyone give as to what we should do next?

~Beanie~

Ditch the fee-charging DMC for a start.

There are other people that will give you advice and guidance for free, the CCCS are one. The money that you are paying this other company could be going towards reducing your debts.

There is a sticky at the top of the page wih details of the free companies.

GeorgeUK

Does not look good Kristeen.

This does not look like a debt management plan (DMP), but possibly an IVA.

they said that eventually my husband would have to go bankrupt and upon that,and the repossession of his flat and his car, we would have to pay them £2,000

Even if this was an IVA, why the beep would he pay lots of money to a company only to make himself bankrupt later? It doesn't make sense. He could do it now and not bother paying these crooks??

I suggest you contact one of the FREE debt charities immediately. You can phone them now for a chat but they will probably want to know what your husband has signed and agreed to.

Sorry it's not better news

(Taken from Fermi's signature)

Professional, free and impartial advice on debt problems can be obtained from several charitable and 'not for profit' organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart. You can contact:

Your local CAB Office and ask to speak to a 'money advisor'
The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
National Debtline - Tel: 0808 808 4000
Payplan - Tel: 0800 917 7823

RAS

Kristeen

It cost £495 to go bankrupt, so please find out what the !!!!! he has signed and talk to NDL or CCCS urgently.

Are any of these debts joint?

And do you have any joint accounts?

If so, try to get his name off the account or close it and open another one yourself.

EmptyPockets

I agree that you should call CCCS as soon as you can. They do not charge you a penny for their advice, and believe me, they are truly fantastic. They will do all they can to help you, and don't be worried about making the call. I was, but they do not judge you, all they try to do is help.

kristeenL27

Thanks for all your help and advice everyone. I have phoned CCCS and they have told me to get my husband to ring them.

All the debts are in his sole name, but we have a joint bank account. Would the bank change that into my name only?

RAS

is the account in credit?

kristeenL27

no, the account is about £8,000 into a £10,000 overdraft. I do have another account in my maiden name with another bank as well.

RAS

Hi

Whilst the account is in deficit, they will not allow you to take your name off it. Whether they would allow you to take his name off it is another matter.

Whether he is on an IVA, DMP or goes BK, you need to try and separate your finances as the finanacial association will wreck your credit rating. If he goes BK, joint debts become your sole responsibiity.