Debt management companies experience

tim_free

Anyone else had experience of these 'people'

We went to a firm called Chase Saunders, they told us to pay them a monthly amount which would be divided up to our creditors. After we followed their instructions to stop paying the creditors direct, they took 17% as a fee and did not communicate with the creditors.
End of a long story is that the creditors registered defaults against despite telling them direct that Chase Saunders was handling it and now we are in voluntary payments agreed by us and the creditors direct.
Useful hint - KEEP AWAY FROM DEBT MANAGEMENT AGENCIES!!! :j

jellycat40

No help at all

I approached a company called Eurodebt. They wanted £5000 up front called the DMP an IVA and said they would take £30 per month and then 10% of any write off of debt. So if a creditor reduced the debt by £3000 they would want £300 in a lump sum.

When I declined they came back a month later with a reduction of the up front fee of £1000 to £4000 whooopee!!!

Louise

Peppa_Pig_5

I used a Debt Management Company called Baines and Ernst back about 6-7 years ago. I was on Maternity leave at the time, couldn't afford the payments so went to this company. Worst thing I ever did. They told me to stop payments to my creditors, they would get in touch from then. Well some companies didn't hear from them, one of my loans defaulted and Baines and Ernst still took 15% every month. Anyway realised it was not the right way to go, so I pulled out of using Baines and Ernst and arranged payments with my creditors myself. A default stayed on my report for 6 years, and made getting good credit very difficult. Now off finally, but learnt a valuable lesson. DO NOT USE DEBT MANAGEMENT COMPANIES.

Thanks for listening, glad I got that off my chest.

Evening_Star

No help at all

I had an experiance with All clear ( previously thought they where called Your Clear). They took a few details and told me to do an IVA and aranged for someone to call me back. When they called me back they just said sending paperwork and send it back. Luckily I read it and was shocked at the charges that nor only all clear would take but the insolvencey company as well they wanted nothing up frount but they would take 50% of my payment. :eek: Luckily I took advice from this site and have now arranged a call back from Pay plan for Sat. :T

Don't let your experiances stop you from calling the free debt advice centres such as Pay Plan or CCCS. They really can help take some of the stress away and set you on the right road to help you manage your debt.