Debt Management not being Managed!!

Kerrynocash

I have been with a debt management company since early in 2008 and up until June this year, there were still some of my Creditors not being paid. I had to do alot of chasing to get things moving and now, over two and a half years later there is still one creditor that remains unpaid.
When I went onto the debt management plan I had gone through a bad divorce and was left with all the debts. I was getting into more debt to cover my debt (robbing peter to pay paul!), I had an excellent Credit Rating but I knew I couldn't continue as I had been so i approached a company to help me.
I have paid them since March 2008 without fail and on time. They charge a monthly fee and several thousand pounds as a start up cost (???) I know in hind sight this was not the best course of action and I intend to change it.
However, I went to check my credit rating today and it's very poor! there are Defaults all over the place and they are not of my doing, I have sent in the company the money in good faith and feel that they have not held up there end of the bargain. Can I approach them about correcting my credit rating?
I am at a loss and am not willing to allow there actions to impact on my life any more, I will cancel the agreement (14 days cancellation) and either deal with it myself or go to CCCS but I want them to fix what they have done.
Hope that wasn't too long winded.
Any suggestions would be greatly appreciated.
Thanks
Kerry

roberts516

Hi Kerrynocash
I cant give you advise but I have also realised that certain DMC give bad advise and have also left me in bigger debt ! Now im angry as they also have taken my money but paid little or no money to my creditors. Now I have taken charge myself and will recoup some of the money I wasted paying DMC fees !! I had excellent advise on this site and from CCCS . I owe £20,000 and I am more determined now to pay it all back but it will be hard but have decided to do it alone with the help of this site. Good Luck and dont let any more DMC rip you off

Kerrynocash

Thanks, hope it goes well for you.:)

flossieflipflop

Hi, I can't give you much advice either except to use one of the charity dmp providers who do it for free. I just wanted to say that regarding defaults, whatever dmp you enter (be it free or fee) you will more than likely incur defaults. This is because a default can be registed if you're not meeting your contractual payments (whatever you should have paid each month on original agreement) as most dmp's give creditors a reduced monthly amount this is counted as a default by most creditors and they are entitled to record it as such so you may not have any luck in getting these removed.
But I sympathise with you about them not paying creditors - have you any idea where the money has gone? Could this be a case of theft if they have kept it?

Hopefully someone more knowledgeable will be along to help you shortly

Deep_In_Debt

Hi Kerry

Sorry to be doom and gloom but I'm not sure you will be able to do anything with regards to getting your money back. I also doubt you will be able to correct the credit rating since it will have been the creditors who will have placed the defaults. By paying a lesser amount than your original agreement, you have broken the terms of your agreement therefore defaulted. Even if you go it alone or with CCCS, you will still get defaults.

Sorry i can't help and good luck with whatever you decide to do.

Kerrynocash

Thanks Guys
There are no defaults with any of my creditors who are being paid lower amounts, only with those who have never been paid, can these be amended?

ladybez

Probably not. However it would probably be worth speaking to the CAB, or a solicitor about this, as there may be a breach of contract. It may be difficult to prove though. Hopefully you have kept all correspondence between yourself and the debt management co.

dancingfairy

Hi - it might be worth trying to get statements from the DMC company as to who they've paid and when - then obviously you might be able to get some money back if you can prove they knew about the other creditors but didn't pay them - or if the original paperwork wasn't clear about the extent of the fees for example.
Regarding the defaults this is a seperate issue (not helped by the dmc failing to pass on the payments) - some people on here might be able to advise you on this - there are certain rules that say when and how defaults can be placed but also like others have said - if you're not meeting the minimum payments then they will add defualts even if you are paying something.
df

annibee

Hi I used to work for a DMC and I know sometimes this happened if they didnt have the correct details for a creditor.... Make sure all your Contact details for youself are up to date and they have all the creditor details exactly right on file.

Sometimes we would be ringing people for an account number and they would say oh i dont have it now ill get back to you 6 months later they were still paying us however that creditor would not be paid until they provided the details.

So all i can suggest is talk to DMC and ensure all account details are correct. An make sure if they ask for anything you do give them for your own good.

Hope this is of any sort of help

x

grey_lady

Is it a fee paying one? if so why are you paying them when you could be using the money to pay off your debt!!!