spectrum advice please

ckemp

My sister in law has been dealing with spectrum for the last 3 months,has paid 2 months of £350 to spectrum and then pays £27 a month for 5 years and then pays back a lump sum of half the debt,in this case would be £11000 on a debt of £22000.
After speaking to me and telling her about this site she has realised that she has made a big mistake.
Is there anyway she can get the first 2 installments back from spectrum(long shot i know) and cancel the plan and maybe go to cccs or payplan for help and advice.

Any advice would be very much appreciated.

Ali-OK

Hi again! A bit slower today in responding lol!

I'm pretty sure I've read other threads on here about people paying companies like Spectrum and moving to CCCS or Payplan who are free. I would suggest she contacts one of the free ones and see if they will take her on and then cancel with Spectrum. (I'm assuming it's a DMP that they keep a portion of what she pays each month?)

Hopefully someone else with knowledge in this area will come along and either confirm that can be done, or give some further advice.

Eager_Elephant

Hi ckemp.

Can you confirm whether your sister-in-law is in a Debt Management Plan or is in an IVA?

May need to check the paperwork. If she is in a DMP then she can write to them and tell them she no longer wants them to act on her behalf and for the return of her paperwork.

If she is in an IVA which £27 per month doesnt sound enough but the £11000 and the five years does then unfortunately this is a legally binding contract, normally once you are signed up then you cannot get out.

The only way to get out would be to go bankrupt although the terms and conditions might be different.

If your S-I-L is in a DMP then I feel it would be better for her to get out now and get help for free, I assume the £350 x 3 is either an introduction fee to an Insolvency Practitioner or is the fee for them to administer her DMP.

I have come across a similar thing recently and the 3 months of payments were to introduce this person to an IP who would draw up the IVA. Luckily I managed to ring the agency and they have agreed to stop the IVA progressing and also to waive the other months fee. Of course they would they have earn't £800 for doing not much.

Unless your S-I-L has been misled or if she has any mental health issues or is unable to make rational decisions then I can't see you getting your money back.

Did Spectrum explain where they thought the £11000 would come from? Equity in the house?

Let me know the answers to these questions and I'll have another think.

EE

ckemp

Thanks to you both for your replies,

My S-I-L was told that she has to get/save the £11000 by the end of the 5 years and this will be offered to the creditors,trying to save £11000 whilst paying off a debt seems almost impossible to me.

It is a DMP and not an IVA so she may have some hope,i think she may have rushed into this with this company without realising there is other help and advice out there.

Thankyou once again

Xbigman

ckemp wrote:

Thanks to you both for your replies,

My S-I-L was told that she has to get/save the £11000 by the end of the 5 years and this will be offered to the creditors,trying to save £11000 whilst paying off a debt seems almost impossible to me.

I've never heard of that as part of a DMP before. My first thought was that this is an IVA but if you are sure it is not then I would want to see the paperwork.
Looking at the numbers you have posted, £27 p.m. is very small on that debt (and is below the usual £300ish an IVA requires) and I wonder if the current debt company are just keeping the debt going for 5 years and then trying to offer full and final settlements, with them keeping any savings.

There is definately something unusual happening here.
Regards


X

ckemp

Thanks for that Xbigman,the whole thing sounded a bit dodgy to me.I will pass on your comments.

Thank you.

Eager_Elephant

Hi ckemp,

If it is definitely a DMP then I would phone tomorrow and cancel the agreement, then follow it up with a letter sent recorded delivery.

I think unfortunately she may well have to say goodbye to the money already sent. At least it will be a hard lesson learnt.

My concern is how she would have got together £11,000 when she can only afford to pay £27 per month to her creditors.

She's better off out now than further down the line, I wonder what would have happened if she completed the 5 years bit then said she didn't have £11000. Maybe you could check the contract and post another time, I'm sure it makes interesting reading.

EE

ckemp

Hi Thanks for all the advice,the last cheque has been cancelled and is terminating all contact with spectrum.
I will try and get all the details of contracts or what the ins and outs were with the agreement.
I have introduced her to this site so hopefully she will get some good ideas and advice.

Many thanks for all your help.