MSE News: OFT crackdown on debt management firms

debbieblueeyes

Hello all, if all these companys are closed down will we be able to claim back the charges that we paid,i was with baines &ernst for 6 years,im now with payplan.

davidgmmafan

fermi wrote: »

If it is not CCCS or Payplan and you are being charged fees, then you are throwing money down the drain and being exploited regardless of whether it was one of these 129.

Switch to CCCS or Payplan. Everything you pay them goes to pay off your debts.

Totally agree with this, some of the advertising is very cleaver saying things like approved or sanctioned by the OFT, which meaningless cost everyone who isn't banned is kinda sanctioned allowed by the OFT to operate.

If you are looking at an IVA you need someone to do that for you, there are loads so speak to several. If you are on a DMP this can be done for free, and with the modest sums involved (ie less than the £200/month needed for an IVA) any fees defeat the point. Believe it or not some firms will charge you for going bankrupt. You can do this yourself.

Vultures.

debbieblueeyes

samlawrie wrote: »

hi can you help me and my partner have just went with a debt managment company how do we know if its dodgy thanks

Hello, Are being charged for their service?if so call national debtline 0808 8084000 or payplan 0800 9177823,they do debt management for free wether its a dmp or iva.its government run.hope this helpsx:)

gerryscot

fermi wrote: »

Links to BBC comment.

-> Firms 'exploiting' people in debt

-> 'None of the money went to creditors'

Glad to hear OFT on Debt Collector's case aswell...:j :j :j

Its about time they got their comeuppance,,:D think they're a law onto themselves...:T :T :beer:

angelof1983

And about time too :T

Glad to here these companies are being investigated as far too many think they are the be all and end all.

As a debt adviser for a not for profit agency who provides FREE (no hidden charges) advice I cannot begin to tell you the number of horror stories etc that I have seen as a result of these companies.

For anyone considering getting debt advice ensure you go to a not for profit agency CAB or search on CLS direct website for a local agency. OR call one of the free agencies - payplan or CCCS. National debtline refer to payplan for DMP's anyway.

If you are using a DMP company then ask them upfront about fee's so you are 100% sure you know what is going to your creditors and what is going to the company. Not all of them are dodgy but as previously mentioned there are services that do the same free of charge.

Tixy

Nickpearson wrote: »

I think this is a wildly inaccurate estimate. I think the true figure, based on my analysis is c£100m for DMP's and IVA's (including lender FSC providers).

Well of course I'm sure you have more information to hand that the OFT don't you Nick?, on no wait, they have done extensive investigations prior to publishing their report, which might just be a little more thorough than your 'analysis'.

Mind you if you bring the issue up with the OFT and they admit to using a wildly inaccurate figure in the report do let us know. Until then.........

Tixy

Nickpearson wrote: »

Delighted with OFT report and its findings.

Delighted? interesting.
Most of us were horrified, though sadly not surprised by its findings.

Lilyiana

I don't understand how debt management companies can buy a debt which banks etc are insured for let's face it, and they only pay 10p in the £ for the debt so if they manage to squeeze you for the full amount that means they will make 90% profit, no wonder they can say they are giving you 75% discount they are still making 15% profit for what exactly? I have been put under tremendous stress over my debts, that only occured because I had two car accidents close together and I had to give up my business as a consequence. The whole thing with these agancies is a complete scam to steal our hard earned cash, absolutely disgraceful.

pepe2008

Nickpearson wrote: »

Hi Tixy, I spend a significant amount of time talking to the OFT Debt Managment Team about the issues we pick up from customers who have previously sought the services of some of our competitors so I already had a pretty clear idea about the problem areas in the sector. The OFT have also kept DEMSA members well informed about the progress of the review. As I noted I am pleased with the report as it should take a significant number of the worst offenders out of the market, assuming the OFT has the bottle to follow through with licence revocations.

In terms of the £250m that is a figure provided by Payplan and quoted by the OFT, the truth is no one knows for sure but perhaps it may be that some organisations have a vested interest in talking up the figure?

Well, all we need now is an investigation into Debt Collectors who force Court Action through on a dodgy Credit Agreement ( or no agreement at all ) knowing that to do so is tantamount to Fraud.
An Unenforceable Agreement is an Unenforceable Agreement....they know that. It isnt the fault of the Debtor that it is so.

...and NO DCA can put their hand on their stone-heart and say 'we never do this', of course you do. The letters you send and the threats you make are made either out of ignorance that there is no Enforceable Agreement because you bought the debt for a song and dont want the trouble or expense to check the debt was correctly found in the first place or its out and out exploitation using fear and ignorance as weapons against the uninformed and frightened.

As a bunch of ignorant, two-faced bullies all DCA's should be ashamed of themselves.......particularly the ones who attempt to wear two hats by setting up a Division to 'help people resolve their Debt Problems',,,,,,,,,,,talk about crocodile tears.

Thats it. Thank you.