millfields and DMC

lanabea

Hi a friend of mine went into a dmp (she uses DMC) after being advised by Millfields Mortgage Savings Centre to do so. She paid MMSC back in October 2007 the fees which were then to be passed across to DMC. It was in the region of £8k.She was recently contacted by DMC to say MMSC (who went into administration in Nov 2008) have not paid her fees across to them and that she must now pay again. As you can imagine she is a ball of stress and frustration at the moment. She does not understand why DMC have waited until now to let her know MMSC had not passed the money across they advised her they were trying to recoup monies through the administrators but it had not been successful. MMSC were trading for at least 1 year after she had paid the monies so does not understand any of this.

She has tried to get compensation through the FSA compensation scheme but this morning has been told that debt management is not regulated and she has no claim even though her advise and monies were paid to MMSC a mortgage broker. DMC are currently still working to reduce her debt but she is afraid if she can't pay they will cease working for her or come after her for the money she has already paid to MMSC.
I hope all this makes sense. I hoped she might be able to get free legal cover to persuit this through her home insurance but she does not have the cover. Any advise greatly appreciated.

MrsTinks

Is the DMC a fee paying company? If so... tell her to go through one of the charities in my signature instead of the bloodsucking cowboys who charge for doing very very very very very very little...

tyllwyd

I don't quite understand - how would a debt management plan have up front fees of £8K? Are you talking about fees for setting up an IVA? Or was some of that money to be distributed to her creditors?

lanabea

Hi the debt management company she is using is called DMC it stands for Debt Management and Counselling she had tried using one of the charity organisations but felt she was left on her own to do everything and they said they could not guarantee full and final settlement anyway when recommended by MMSC to use DMC she decided to go with it and up until this she has been happy with the way things are going. The issue now is she has paid £8k (which is fees only none of this money goes to her creditors she is paying her creditors a reduced montly sum I think it's about £150 per month) direct to MMSC who have not passed the money on so DMC want her to pay again even though she can prove she has paid MMSC they say they have not received payment for the 2 years work they have done.