anyone heard of a company called Debt Solutions ?

hope_123

My best mate is in about £32k of debt with credit cards & I have tried to help her by applying for % credit cards & unsecured loans (she is maxed out with her mortgage, so can't put anymore on that), but they've all been refused in the last few weeks.

I suggested that she rings a free debt-management helpline, but she initially refused, but now that all the applications have been refused I think she has seen the light.

She got a phone call today (she said it was an automated call, but when she listened to it & pressed a few buttons, that she was transferred to a customer advisor, who asked her lots of Q's & suggested that an IVA was the way forward). This was spooky, as I had just discussed this with her about an hour earlier, but she wasn't keen. But after talking to this bloke for 40 mins, she thinks it may be.

He said that it wouldn't cost her anything, but that the credit companies would pay for it (does that sound right ?)

So she has made an appointment for someone from "Debt Solutions" to visit her on Thursday evening (and she asked me to be there too).

Anyway, I was wondering if anyone had any dealing with this company ?
Are they genuine or will they be making money from her debt crisis ?

Or should I encourage her to ring the CCCS or someone like that, before seeing this guy ?

any advice will be welcome. thanks.

Locke

Is this them?

http://www.reviewcentre.com/reviews198318.html

DarkConvict

Only take advice from charities, there are no many companies out there trying to profit off you. The CC companies do not pay for an IVA you do, there is setup fees and monthly costs.

Get them to scrap the appointment and get them talking to national debtline, CCCS, PayPlan, CAB, CAP. Speak to atleast 2 of those - https://forums.moneysavingexpert.com/discussion/2077631

The WRONG people to go to...

Avoid any debt help or loan consolidation companies that advertise on the telly or in some newspapers. Their job is to make money out of you, plain and simple. While in the short term their plans will make your payments lower, in the long run it'll cost you dear. Avoid them. Don't touch them. Don’t go near them.

I think this post from the Forum explains it better than I ever can:
"We, my wife and I, are on a seven-year plan with CCCS" (the Consumer Credit Counselling Service, one of my suggested agencies – Martin) "having recently changed from a commercial debt management company after hearing Martin on Radio 2's Jeremy Vine show. The simple action of swapping to the CCCS has shaved over two years off the length of our plan as the money we were paying the management company now goes to our creditors instead! Of course, that also means a financial saving of nearly eight grand over the term of the original plans 10 year period."
This includes IVAs and debt wiping companies. While they sound good, they're only for a few people. If either is for you the debt counselling agencies should suggest it.
.

BLT_2

Under no circumstances allow her to carry on with this meeting, the fact that these people are cold calling numbers at random gives you an idea of their working practices. I get one of these vultures calling me every night, and I don't have debt problems.

Tell her to cancel the call then contact CCCS, there is ample free debt advice out there without allowing these scum to profit from your misery

Charco_2

Hope123, No harm in hearing what this guy has to say, make sure you're there so that she can discuss it with your properly afterwards. You're a good friend.

Don't let her agree to anything and certainly don't pay any money. Dont think I know the company in particular... the terms Debt Solutions could relate to a number of companies out there.

Ask if the guy you're speaking to is actually working for the IP/IVA Company or if he is just packaging a case to sell to a company that is going to do the real work. If he's not part of the IP's company then he cannot really talk to you about these things properly as he is not regulated by the same (or possibly any) authorites - that doesn't mean that what he has to say has no relevance or value.

Dont get sucked into the pathetic lie that CCCS/Payplan or any of the other so-called debt charities are any different from other companies out there. They all provide a service and get paid for doing so. Speak to as many companies as you like or that you feel you need to and if you are interested in the IVA then use the IVA forum on these boards to confirm everything you hear... Which begs the question: WHY WAS THIS THREAD MOVED?

preable

BLT wrote: »

Under no circumstances allow her to carry on with this meeting, the fact that these people are cold calling numbers at random gives you an idea of their working practices. I get one of these vultures calling me every night, and I don't have debt problems.

Tell her to cancel the call then contact CCCS, there is ample free debt advice out there without allowing these scum to profit from your misery

This is correct do not allow her to carry on :T

bargainbetty

To clarify something Charco claimed, please note the following - the charities (all listed at the top of page) are funded by a pot that all the banks are obliged to contribute to. However, they do not charge the individual for their services.

Debt Solutions and other companies may arrange an IVA or DMP, but they take a cut of the monthly payment to adminster it. This means your friend would pay i.e. £200 per month, but only £150 would go towards her debt, instead of all of it.

Some creditors do not like this and refuse DMP/IVAs as they see that not all available funds are going towards the debt. Others don't care.

Ultimately, do not let her sign up for this. Personally, I would cancel the appointment and make one with CCCS or Payplan - far more useful way to do it, and you won't get stung.

If she does go ahead with it, ask him one question: 'So, every penny I pay goes towards my debts, and you don't take anything for your company? Ask him to sign a form saying it, or point out in the contract where it details it. Ask him to show you the section of the contract that details the charges anyway. It's fun to watch a conman carp his pants sometimes.

Good luck x

hope_123

BLT wrote: »

Under no circumstances allow her to carry on with this meeting, the fact that these people are cold calling numbers at random gives you an idea of their working practices. I get one of these vultures calling me every night, and I don't have debt problems.

Tell her to cancel the call then contact CCCS, there is ample free debt advice out there without allowing these scum to profit from your misery

Thanks BLT & everyone in this thread who advised us to not go ahead with this.

I told my mate & she cancelled the appointment, then rang CCCS, who told her the same.

I think that she has now hit rock bottom, as she has had to face up to her problems, she is genuinely shocked about the state of her finances & has vowed to sort herself out.

I have posted another thread in the loans section (please read it if you have time).

She has finally been offered a loan & can see a way out of this mess, I'm not convinced it's the best solution, but it's better than paying off her c/c's at the current rates - which according to the 'minimum payments calculator' will take her over 100 years to pay off !

All I can say is - OH...MY...GOD... !! :eek:

Charco_2

Holy crap! After all that you came away with the solution that she's going to consolidate her debts!? Possibly thee worst debt solution of all time!

Bargain Betty, that's lovely, it truly is but it just aint true!

CCCS and other debt charities get paid the same as any other company. As regards fees for DMPs they call it a "fair contribution" if you care to ask them about it that is the mantra that they will give you! Basically it means a percentage of the debts they recover.
IVAs are slightly different in that they are heavily regulated so they had to do something slightly different. Which is the CCCSVA - a sister company of the CCCS - which is not actually part of the "charity". However those noble guys after collecting their fees IN EXACTLY THE SAME WAY AS ANY OTHER IVA COMPANY redirect the profits back into the "charitable organisation" -if you're interested to find out more you can go check out their publicly available accounts... sorry no, wait, you can't! Perhaps you could ask the directors of the foundation as they whizz passed in their fancy sports cars on the way to their mansions!

As for their status as a charity... the Charity Commission has regulations about what can and can't be a charity, these DEBT charites are actually in as POVERTY charities, which is not the same thing!

RAS

hope_123 wrote: »

I have posted another thread in the loans section (please read it if you have time).

She has finally been offered a loan & can see a way out of this mess, I'm not convinced it's the best solution, but it's better than paying off her c/c's at the current rates - which according to the 'minimum payments calculator' will take her over 100 years to pay off !

All I can say is - OH...MY...GOD... !! :eek:

Please stop her doing this.

No-one her would recommend a consolidation loan to clear consumer credit. She is not tackling her debt, just avoiding it.

Please get her to take proper advice.

WRINKLES

if you take out a loan to pay a loan all that happens is you owe more money and pay it back over a longer time get proper advice before doing anything