Debt management agency

hunma1978

Hello all,

i was wondering if anyone could give me advice on debt management agencies. I have been with 1 since 2007. I have been thinking about leaving them so I contacted the creditors myself to set up a payment plan without a 3rd party.

This was the time when I found out that the agency-that i have been paying promptly- have not paid my creditors for 5 months now. this resulted in extra charges, late payment fees... etc, something around £150. It also meant that my case was with debt collection agencies, not the actual creditors. I also found out that the debt management agency missed payments before, never informed that creditors about changes such as address and phone number which meant that i failed the security questions. more headache.
My question is: Is there a regulatory body for companies like this? I have followed the agency's own complaint procedure but i doubt it will have results. They blame that creditors for not cashing their cheques, however, i feel I am paying them to ensure that the creditors receive the payments on time.

Can anyone advise, please? thank you so much

Hannah_10

There are a few, for different purposes. The one that can assist where you want a personal resolution is the FOS. http://www.financial-ombudsman.org.uk/

The OFT wont intervene in individual cases but as this company has not traded fairly at all then you should complain there too. http://www.oft.gov.uk/

Edit: Oh and you can name and shame if you like. There is no forum rule against it.

PNPSUKNET

if the cheques have not been cashed, ask for the money back

Grumpelstiltskin

I hope it isn't this company you were with.

https://forums.moneysavingexpert.com/discussion/3098382

They have gone into administration having not paid clients money over.

crazyguy

hunma1978 wrote: »

Hello all,

i was wondering if anyone could give me advice on debt management agencies. I have been with 1 since 2007. I have been thinking about leaving them so I contacted the creditors myself to set up a payment plan without a 3rd party.

This was the time when I found out that the agency-that i have been paying promptly- have not paid my creditors for 5 months now. this resulted in extra charges, late payment fees... etc, something around £150. It also meant that my case was with debt collection agencies, not the actual creditors. I also found out that the debt management agency missed payments before, never informed that creditors about changes such as address and phone number which meant that i failed the security questions. more headache.
My question is: Is there a regulatory body for companies like this? I have followed the agency's own complaint procedure but i doubt it will have results. They blame that creditors for not cashing their cheques, however, i feel I am paying them to ensure that the creditors receive the payments on time.

Can anyone advise, please? thank you so much

There is a bodie in place for debt managment company's but only a handfull are registered with them, http://www.demsa.co.uk/.

If they have failed to pay your creditors for 5 months I suggest you cancel the arangment asap and send out a letter to your creditors stating that you wish to deal with them direct and if your fee to the debt managment plan was say £30.00 per month then divide it by your creditors amounts that you are willing to offer, you need a confirmation letter from all creditors agreeing to this and usualy have a 6 month review on the amount being paid back.

As for the debt managment company,

Write a letter today and state to them that you are now going to cancel your agreement with them and they have 7 working days from date of letter to reimburse you any monies that are unpaid, also state that you are not going to pay them any admin fee for stopping there service and if they fail to reimburse you within 7 working days you shall go to the FOS and seek a small court claim to recoup any losses.

hunma1978

Hi guys,

Thank you so much for the advice. I have contacted all creditors and set up a new payment plan... All good. The debt man. company is very quiet, not replying to me. So i sent a recorded letter asking for all monies back.. Will inform you all about the outcome. Thank you so much again.
Oh and thank you for the info about the rules. They are Zebra Money Management. Absolutely ridiculous service. Previously were Debt Angel, not sure what happened there.

Thank you