Hamilton and Locke

binnie

Could I have a bit of advice please for my friend.
She signed up with Hamilton and Locke debt company about 2007 and wants to know if she could change companies and go with somel one like payplan.
She has recently been getting letters from creditors saying no money has been received from this company.
Hamilton and Locke take some of the monthly payment to keep as their commission like most do. But we have heard payplan don't do this.

fermi

She could switch to PayPlan or CCCS. With both of those, every penny you pay goes towards paying.

Has she had a look at what the terms and conditions for H&L say about terminating their plan?

binnie

I've just informed her and she will try and find the paperwork.
She pays £121 a month for three creditors whom are all credit card companies and the debt company take £35 a month out in fees.

fermi

Ouch!

That's £420 per year completely wasted. :eek:

Plus the rest if they aren't doing a proper job with the rest of the cash.

binnie

I've just read their terms and conditions on their website and it does say they can end the contract anytime by either phoning them or sending them a letter.
When she joined them, they said they couldn't freeze the interest on her cards as she still had a bit of equity in her house. Is that true?
Her mortgage is £47,000 ish and the house needs loads of work doing at it and no-one will buy it until the work is done.
So some of the Estate Agents have said they won't take it on board until the repairs are done.
It needs pointing done on a kitchen wall as water is coming through, some plastering work and some cosmetic work like decorating.
Then once all this is done it may only be worth about £60,000 or so.
She works 16 hours a week earning £6.46 an hour and is single parent of one child still at school . She gets £125 a week benefits and is struggling to pay the mortgage, bills, debts etc.

If she went with payplan, would they take her on. I think she is afraid or not motivated to sort this so I am helping her.
Thanks for all advice.

RAS

binnie

To be honest, in your friend's situation, she should not be paying anything like that amount to creditors.

Please can you get her on here?

We need to know whether she is on an IVA or a DMP?

If it is a DMP, she needs to talk to one of the debt charities, preferably CAP, CCCS or NDL.

Given her income, she should not be paying that sort of sum to a debt managment company.

She needs to look out her original credit card detials, if she has them, and the default letters.

There is quite a lot that can be done to help her.

binnie

Whats an IVA please?
I'm doing the emailing bit for her as she can only use the computer at her boyfriends house and he gets mad at her for the debt so she keeps struggling along on her own.
I'm meeting up with her tomorrow and I will see what letters she has and will get back to you.
Is it incorrect information that she should borrow more money against her house as she has a bit of equity in it? Doesn't seem right to me as she can't afford to pay anymore back as it is.
I would have thought they would have froze the interest.

binnie

She has just text me to say she is on a DMP

binnie

Is Payplan not a good idea?

barbiedoll

Anyone who tells her to borrow more money, especially if secured on her property, is giving her very bad advice. :eek:

Tell her to write a letter to Hamilton and Locke, terminating her agreement with them. (Make sure she sends it by recorded delivery and she should keep a copy) Does she pay them by direct debit? If so, she should contact her bank to cancel the payment.

She can do a debt remedy online with CCCS (and possibly with Payplan too?), then she can call them and set up a DMP with very little hassle. She will need to get an up-to-date balance on her current debts, if Hamilton and Locke haven't been paying her creditors, where has the money been going?

Do help her with this if you can, she really needs to get this sorted out properly. A charitable DMP provider will allow her to put aside money for essential repairs to her property and she may have a better chance of getting the interest frozen on her debts too, most companies will recognise a DMP which is administered by one of the charities. Don't let her struggle on with this, as RAS says, there is a lot of help available to her.

Clarie_2

Payplan is a good idea - any of the charities will be able to give her free advice and help. There is a list on a sticky at the top of this forum.

You could also post to the 'ask the cccs' thread at the top of the forum about the equity - as far as I know, no, she shouldn't be asked to borrow again, but they will know better. CCCS are like payplan - a debt charity who help with DMPs etc.

Clarie