MSE News: 50 dodgy debt firms face the axe

fermi

Nitha wrote: »

here's hoping Mackenzie Hall are on that list and have finally got what they deserve!

This is just debt management companies I'm afraid, not debt collectors.

fermi

Not exactly "breaking news" any more, but PayPlan have finally noticed.

BREAKING NEWS from the Office of Fair Trading

AA99

Is there a listing of names ??????

wretch

RAS wrote: »

And of the just shy of 200 firms who are visited, the OFT found ninety two (92) percent were non-compliant. OK a few might have only had one small problem but it would be quite reasonable to say that that of the companies visited, nearly all were dodgy.

May be why Martin recommends debt charities?

I don't think it's fair to say only charities are worthwhile approaching, but it certainly makes sense to be sure of the company you're using before you part with any money.
In that regard the OFT action is a welcome (albeit small and long overdue) step in the right direction, along with the work that DEMSA and the Debt Resolutions Forum are doing.

Can't wait to see the listing of revoked licences!

Anyone know what will happen to the back book of debt management plans set up by these companies? Hopefully they'll be bought by/transferred to a more reputable company.

RuthnJasper

I wonder if there will be, in due course, a list of the firms involved? I have been in an IVA, originally for four years then extended to five years when I had to slightly reduce the monthly repayments (I've been in the IVA since September 2007). The fee structure isn't totally clear to me from the paperwork and I am wondering how much of my repayments are in fact fees and whether the firm looking after my IVA might be one of the ones on the OFT's list?

Any advice gratefully appreciated!

Tixy

This link to a post of Fermi's - http://forums.moneysavingexpert.com/showpost.php?p=40691782&postcount=5 - shows a way you can check through the register for those who have had surrendered the licences or had them revoked.
You have to search it week by week though so its a bit time consuming, but I looked at those dated near the start of December and found a few on the search.

roberts516

Good News at last, I hope Mackenzie Hall and the DMC that gave myself bad advise and landed myself in mega debt are on the list. I will gladly spend a few hours scanning to see what Rip off companys are on the list.

fermi

Interesting......

http://www.which.co.uk/news/2011/02/mis-sold-an-iva-or-debt-plan-complain-to-the-fos-243636/

Mis-sold an IVA or debt plan? Complain to the FOSSix in 10 debt complaints upheld

02 February 2011

An increasing number of consumers who feel they have been missold a debt solution by a debt management company are taking their complaint to the Financial Ombudsman Service (FOS), with six in 10 complaints proving successful.

Last month the Office of Fair Trading revealed that 35 debt management firms have closed and a further 15 face OFT action. A recent OFT investigation into the sector led to 129 debt management firms being warned over their behaviour towards debtors.

Increased number of debt complaints to the FOS

Consumers are increasingly complaining about poor advice, insufficient information and sub-standard service from debt management companies.

• In the last financial year (2009/10), the FOS received 394 new complaints relating to debt management companies.
• In the first nine months of the current financial year (April – December 2010) the FOS received 335 formal cases about debt management companies, an increase of 25% on the same period last year.
• Last year the FOS upheld over 60% of the complaints it received in this area in favour of the consumer.

Common causes of complaint include:

• Consumers saying they thought they’d be ‘debt free’ and find they still have a debt remaining, after they believed it would be paid off;
• Consumers not understanding that money they paid would be taken in charges by the debt management company, before paying of the underlying debt;
• Administrative problems – for example, delays in making payments to companies who were owed money.

If you think you have been mis-sold a debt solution, complain to the debt management company in the first instance. If it fails to answer your complaint satisfactorily, take the matter to the FOS.

SnowMan

SnowMan wrote: »

So good news that 50 dodgy firms are being shut down but the real news story is the shutting down of free debt advice offered by the voluntary sector. An MSE news item on that is very much needed.

Well done to MSE for highlighting this important issue in the latest MSE news item. It certainly is flabbergasting. An excellent news item. Thank you so much.

:T:T:T:T:T:T:T:T:T

ITtim

What benefit would making a complaint have? My wife was put on a dmp with debt line, they took £70 per month for the privilage and didn't make clear the reprucssions to her.

For example, she didn't understand the impact this would have on her credit rating, she was led to believe that all her creditors would freeze interest (they didn't) and once we realised what was happening the damage was done.

Are people claiming back fees or getting defaults removed?