Debt Advice

gerryjo1984

At present I have a DMP in place with Churchwood Financial. I have been making payments to them for 6 months now. I have got 5 Credit Cards, 2 Loans and an Overdraft so 8 debts in total. A few of them have made agreements with Churchwood but some have yet to do so and I am starting to feel that Churchwood aren't exactly falling over themselves to make an arrangement. Obviously the longer the companies go on charging Interest the more they will gain as they are getting 15% of any payment I make. I am wondering is it possible to get out of a DMP or have I basically signed my life away. Also if I got out of the DMP is it likely that my Debtors will be happy to make a similar arrangement with me or will they just go straight to the Jugular with me.

Apologies if I have posted in the wrong place but I am not sure the correct procedures. Any help would be much appreciated.

Sososad

Hi Gerry

Didnt want to run, i too did the same as you i started a DMP with another company and they expected a percentage every month, as far as i know a DMP is an informal agreement and can be ended at anytime, I ended up going to Payplan where they run the DMP for me and they do not charge for this. This is what i have done and am happy with this as what i am paying to Payplan is being distributed between all of my creditors.
Good Luck!!

impetus

I am also with Payplan and they have been superb. It's early days yet but they seem to know what they are doing and get results. I guess a few months down the line I will be in an ever better position to comment. Almost went with a commercial DMP until thankfully I found this forum and National Debtline.

Tixy

Hi Gerry

You should be able to get out of your agreement with Churchwood as a DMP is informal- and then you could deal with your DMP yourself (a self-managed DMP) or go to one of the organisations taht don't charge a fee such as Payplan as recommended above or the ones on this list - http://www.moneysavingexpert.com/loans/debt-help-plan#help

Your creditors are likely to be happy with the arrangement as because you won't have a fee to pay they will all get slightly more of your monthly payment each.

From churchwoods own site http://www.churchwoodfinancial.co.uk/Terms%20of%20Business%20Churchwood%20Group2009.pdf


.4 You have the right to cancel your Debt Management Programme under section 12 & 13a of the Distance Selling Regulations 2000, at any time but if cancelled during the first seven working days from the day after the contract was concluded (in other words 11 days from when you agreed the plan or 12/ 13 days if it covers a bank holiday) and that you were in receipt of the paperwork you will get a full refund if payment has been made. You must cancel in writing to us at Churchwood CANCELLATIONS 6th Floor Kingsgate Wellington Road North Stockport SK4 1LW which is in accordance with the Distance Selling Regulations 2000 section 10.

1.5 Refunds: A refund will only be considered if:
Payment has been cleared (this can take up to 5 days after it has left your account)
Full Refund
Cancellation has been made within the statutory cooling off period and work was not commenced on your instruction.
The cancellation date will be the date of postage as on the envelope, which will be scanned for future reference.

AND

6. Your right to terminate
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]6.1 You have the right to cancel this Agreement under section 1.4. [/FONT]
[FONT=Times New Roman,Times New Roman]6.2 You may also cancel this Agreement at any time if the total Fees payable under the Debt Management Programme increase from the fees (4.3) we estimated to you at the commencement of the Agreement provided that this right to cancellation will not be available in the event that such difference in Fees is due to any misrepresentation by you of your finances, including, without limitation, your Creditors. In the event of cancellation under this section 6.2, we reserve the right to retain the Initial Fee. [/FONT]
[FONT=Times New Roman,Times New Roman]6.3 In addition to your right to cancel under sections 6.1 and 6.2, you may also end this Agreement at any time by giving us [two] weeks prior written notice which you may serve at any time whether or not you believe we may have been in breach of our obligations under this Agreement. In the event of cancellation under this section 6.3 we reserve the right to retain the Initial Fee. [/FONT]

Make sure you hold them to the agreement including getting all your paperwork back from them[/FONT]

jenny_13

As people have said try payplan or there is also CCCS who do free DMPs. Some creditors don't always take well to their customers using commercial companies as they feel they are not getting what is "theirs."

SouthCoast

From CAB:

If you do use a DMC, check the agreement carefully before signing anything. Check:

• whether you can cancel at any time if you are not happy with the service
• what the fees are
• whether you will get your fee back if you cancel
• which creditors the DMC will deal with and which creditors you still need to deal with.

If you are thinking about using a DMC, you should get advice from an experienced adviser, for example, at a Citizens Advice Bureau.

http://www.adviceguide.org.uk/index/your_money/debt/help_with_debt.htm#debt_management_plans

Jacks_xxx

:wave: Hiya honey,

I agree with everybody else, Pay the money off your debts - not to a fee paying company when you can get the same (better IMO! ) service for free with CCCS or Payplan.

Love Jacks xxx

gerryjo1984

Thanks for all the advice. I am going to attempt to contact my debtors tomorrow. Do you all think they are likely to freeze the interest.

Jacks_xxx

gerryjo1984 wrote: »

Thanks for all the advice. I am going to attempt to contact my debtors tomorrow. Do you all think they are likely to freeze the interest.

Mostl likely, some will and some won't hon.

ajt15

i am considering an informal agreement with churchwood. Should i go with payplan?

Tixy

Hi AJ

If you are thinking of doing a DMP I would not do this with Churchwood or any fee charging company. Instead look at this list of recommended advice organisations - http://forums.moneysavingexpert.com/showthread.html?t=2077631

Payplan would be preferable to Churchwood but are not one of the places officially recommended by MSE.