What Are My Rights???? Please Help!!!!

hdkc7799

I recently applied for a debt management programme and paid the initial 'set up cost' of £315. After further advice I decided to go with an IVA, as it was £100 cheaper to do this. No kind of accounts were set up by the other company as I changed over quickly. I then asked for a part refund as none of the £315 was sent to any of my creditors, but they said I wasn't intitled to any of the money back....is this true, or can I reclaim some of it back? And if so, how? please......can anyone help?

RAS

Do you understand that the fees for an IVA are about £6,000?

Have you spoken to any of the debt charities?

hdkc7799

Hi. Thanks for your reply. The monthly repayment for the debt management programme was £250 a month, the IVA is £150 a month and they were both over 5 years. I need help as to whether or not I can claim back any of the money I initally paid, as none of it went to the creditors.

RAS

You are being lied to - it is impossible to determine exactly how long a dmp WILL LAST. And it is impossible to say whether your creditors will accept a 60% IVA until t hey know your personal finances. They will actually only get £3000 back from the money you pay the IVA provider, the rest goes to the IVA provider.

Please speak to one of the debt charities; at £15K debt you are absolutely borderline for an IVA. And your creditors may weel refuse to accept it.

browneyedbazzi

Under what circumstances did you sign up with the DMP provider? Was it done over the phone, at your home or at their offices?

If you signed up and paid the fee in your own home or over the phone then you have 7 days in which to cancel the agreement and they have to refund the money. The paperwork they provided should have explained your right to cancel - if it didn't then you should contact your local Trading Standards service who may be able to help you get your money back. If you had the correct paperwork and cancelled within 7 days but they're refusing to issue a refund, then again, contact Trading Standards. If you were notified of the 7 day cancellation period but waived your right to cancel at the time or waited until after the end of the 7 days then it's probably too late to get any of your money back.

The 'set up cost' that some providers charge is just that - a fee they charge you, none of that money EVER goes to a creditor. If you sign up with a fee charging provider then usually all their fees are taken out of your payments before a penny goes to a creditor. That's why everyone on here will advise you to go to one of the debt charities - with them your payments go towards your debts, not fees!