Debit Fixers and their Settlement plan seems too good to be true?!

boogiebear79

New user here so please be gentle. Myself and partner are in a situation where we are £35,000 in debit and are in the process of selling our house. We have had some contact from a company called Debit Fixers who tell us that after setting up a DMP with them we for £450 per month after 6 months with them they will then offer all of creditors a settlement fee of at least half the amount we owe and they will accept this. Is this a good route to go down. We plan to go into rented for a couple of years once the house is sold and try to build up a deposit again to buy a new house but I'm worried we won't get another mortgage. Debit Fixers assure me we will be able to get another mortgage after 6months of settling with the creditors. Any advice or information from anyone out there will be greatly recieved as we really need to try and sort this out now its getting out of control. Thanks for reading

boogiebear79

Does anyone have any dealings with this company and how do you find them to deal with? I'm not sure if they are the right way to go with my financial situation. It sounds too good to be true?

Hannah_10

OMG they've exadgerated everything...

Ok firstly they are a fee-paying DMP service and will charge you for the priviledge of having a DMP with them. If you want a managed DMP go with the charity CCCS or Payplan (who are a business but they are unique in that they get paid by the credit industry, not by you). Both of these offer a free service.

You can make settlement offers yourself with a free template letter on National Debtline's website and creditors are a lot more ready to consider settlements from real people than from Debt Management Companies but they are still under no obligation to accept at all and the idea that they will accept 50% or 60% on a debt that is being regularly repayed on via a DMP is seriously misleading too. They have no incentive to accept that, they know they'll get the full lot if they wait. If you want a nice cheap settlement you generally have to let a debt rot for a while first- a high risk strategy. Also your DMC have no incentive to do this as they would stop making a profit out of you. It's the mortgage that's the most shocking misrepresentation though. They have made that 6 months up! You might be able to get a mortgage again after 6 months yes, but that depends on a lot more than settling the debt six months ago.

Frankly what they are telling you is dangerously misleading and you should run as fast as you can.

Disregard everything these charletans have told you, as if you'd never heard it and approach one of these agencies for fresh advice you can trust. http://www.moneysavingexpert.com/loans/debt-help-plan#help

boogiebear79

Ah thanks for the advise its so confussing. The guy i've been dealing with has an answer for everything and makes all seem to good to be true. My husband said yes to him today and told him call me. The guy from Debit Fixers has phoned me about 7 times and sent 2 texts telling me he doesn't wnat me to miss out on the oppotunity to settle blah blah blah. Have spoken to CCCS about a week ago and they don't deal with the creditors for you anymore you have to deal with them yourself now. They frightened me to death about CCJ's, bailiffes and the such and i just feel like running away. Thanks though x

glimmerofhope

Didnt want to read and run
Have you spoken to National Debt Helpline or Payplan (similar to CCCS), I started out with over £19k of debt just over a year ago and it is coming down through a DMP but my credit will be shot for 6 years (not that I want credit - I have learnt if you want something bad enough save for it )
Dont run and dont let it scare you, CCJs and Baliffs would be a long way off. There are plenty of letter templates on this site that you can send to your creditors and plenty of people on this forum willing to help.
As hannah said the people your husband spoke to have not been entirely truthful, regarding 'settling the debt' and the mortgage - which is why you should call National Debt Helpline

thechippy

CCCS won't deal with your creditors anymore?

saltnvinegar

boogiebear79 wrote: »

Debit Fixers assure me we will be able to get another mortgage after 6months of settling with the creditors. Any advice or information from anyone out there will be greatly recieved as we really need to try and sort this out now its getting out of control. Thanks for reading

Hi BoogieBear!

Welcome to the MSE DFW forum! :wave:

boogiebear79 wrote: »

We have had some contact from a company called Debit Fixers

NO NO NO!!!!!! Do not touch this company with a bargepole!!!

boogiebear79 wrote: »

who tell us that after setting up a DMP with them we for £450 per month after 6 months with them they will then offer all of creditors a settlement fee of at least half the amount we owe and they will accept this.

This is a complete pack of lies!!

After only 6 months your creditors are not going to accept a 50% full and final offer figure. After 6 months most creditors will only just be getting round to defaulting you!!!

boogiebear79 wrote: »

Is this a good route to go down.

NO! At least not with this company!

boogiebear79 wrote: »

Debit Fixers assure me we will be able to get another mortgage after 6months of settling with the creditors

Complete ballhooks. Your credit rating will most likely be trashed and you WON'T be able to get a mortage will be the more likely outcome!!!

So this is what will most likely happen:

Debit Fixers will keep the first 3-6 months of the money you pay them as 'fees' and give nothing to your creditors.

Your creditors will get nothing for the first 3-6 months and will harrass, telephone, default you or worse may take you to court.

Debit Fixers will wash their hands of you, keep the fees you have paid them and you will be worse off not better.

If you're thinking of going down the DMP route talk to someone impartial and, more importantly free!

Where to seek impartial advice about your debts

You may also want to have a read through a thread I started here:

DMP's Myths & Truths

If Debit Fixers haven't explained any of the items in this thread to you and made you aware of the risks then RUN AWAY!!

Best

SnV

saltnvinegar

Oh and BTW you should really make a complaint to the OFT about this company and their shameless mis-selling and complete lies.

That company will completely ruin you financially if you let them, at a time when you are financially vunerable and need help, rather than having some bottom feeding lowlife take advantage of you.

The OFT have already had the licenses of many of these debt management firms. Sounds like this one needs theirs taking away too.

Best

SnV

Grumpelstiltskin

If the OP means 'Debt Fixers' and not 'Debit Fixers' then that is the trading name of Money Debt and Credit Ltd.

Just read this job description for telesales people from their website and you will see why they keep pestering anyone they can.

http://www.moneydebtandcredit.com/vacancy/telesales-1.aspx

saltnvinegar

Grumpelstiltskin wrote: »

If the OP means 'Debt Fixers' and not 'Debit Fixers' then that is the trading name of Money Debt and Credit Ltd.

Just read this job description for telesales people from their website and you will see why they keep pestering anyone they can.

http://www.moneydebtandcredit.com/vacancy/telesales-1.aspx

Hmmmmm

Reporting to a sales manager

Target orientated

To 'secure' a first payment from clients

To 'secure 2 DMP's a day

Says everything you need to know........

Hannah_10

saltnvinegar wrote: »

Target orientated

You are too kind to them, the exact wording, as I have copied and pasted was "Must be TARGET DRIVEN", in capitals! :mad: