Churchwood Financial DMP advice

Mis-Red

Hi,

I am a newbie on here, but hoping someone can give me advice. I started with Churchwood Financial in early 2008, I wanted to consolidate my outgoings to a manageable payment, but because of problems via my failed relationship and my money then screwing up my credit rating wasn't great. So when they said this was the best solution to sort out my £7644.00 debt I went with it as I was in such a bad place worrying about money all the time...I was on decent wages, just wanted to be able to pay it all off. The helpful gentleman said I would be debt free within about 3 years...that sold it to me, I was desperate to just get rid of the debt and start afresh.
Then earlier this year I got letters from one of my creditors who passed on my debt to a debt collection agency who said they hadn't received a penny...after many calls and letters Churchwood said that they had indeed paid it and that it should have been paid off by now. But that it would take not 3 years but about 5 years to clear off my debts.... I have constantly had letters from Halifax saying that payments are late or not the agreed amount... I have sent these to them with no reply in the past and also telephone calls.
Now yesterday I went on the Experian website and found out that I owe £7100 odd pounds... I have been paying first £200 a month then £220 when one of the original creditors I had told Churchwood about came out of the woodwork saying they hadn't been paid by them... Chuchwood said they never had any record of them... I notice I also have one from Next for £238 that doesn't appear on my records for Churchwood. But in 31 months (they didn't start paying till May which was a couple of months after I paid them about £400 set up fees) I have now only cleared £500 of debt... in effect it seems I have almost had my debt doubled! I am feeling sick to my stomach at this point as the last two years has been a struggle as I no longer work full time as I am my mothers carer...I get £53 a week... I am with my new husband but he only earns a pittance himself. When I have questioned things it depends on who you speak to to how much information you get and if you get a nice or a rude customer services officer... I am at present still waiting for 'David' my advisor to call me today as I want to know why one of my creditors don't appear to have had a penny and my credit report hasn't changed...and why every damn payment seems late!
My question is does anyone know if Churchwood can charge me for pulling out of the agreement. I think I will deal with the creditors myself, after 31 months...and over £6000 later you would think I would have made some dent in what I owe!

Tixy

Hi

You need to give churchwood one months written notice to cancel your agreement with them. They should not be charging you any fees to cancel.

You then need to write to them to request full details of all the payments they made on your behalf, dates amounts payees etc.

Then you need to seek financial advice from one of the debt charities. They will advise if a DMP is still a sensible option for you - if it is they will run it for you for free. No fees, no messing about with payments.
However in view of your change in circumstances and low income they will also consider and advise if they think another options might be more appropriate for you (possibly a debt relief order for example).

Here is where to go for advice - IMPORTANT - Where to seek professional impartial advice about your debts.

Mis-Red

Thank you for that. I haven't even heard of a debt relief order.

Tixy

Debt relief orders are like a mini-bankruptcy for people in certain circumstances. It may not be appropriate for your circumstances, but whichever of the charities you speak to they will give you impartial advice and will go through all your options in detail so you can make the best choice for you.

Mis-Red

I have just had another phone call from Churchwood, New Look and Advantis have apparently lost my account, and they don't know where it is being held and apparently I am to wait until someone sends me threatening letters! Oh and it's doing the guys head in trying to find all of this out. I think I am going to phone New Look and ask them if they have any idea where the hell my money is going.