Has anyone switched Debt Management Plans before?

Monostich

I had been with Money Debt & Credit for 4 years paying them a monthly service charge of £35 (yes I know - shocking) but in recent weeks another Debt Management Company contacted me and said I was paying too much and should sign up with them. They go by the name of Kensington Finance and seem a lot more professional than the previous lot.

I paid my first payment to them a few weeks back but now Money Debt & Credit are sending me nasty emails and saying that I should never have left and that I owe a service charge for December even though I don't use them anymore!

Now, I can't remember if I signed a contract as it was so long ago. Have I made a mistake in changing? Is it legal to do this? I have to wait for my old account advisor to come back from annual leave and am full of worry about it all at the moment. I'm worried that he's going to say "You can't just join another DMP you signed a contract to stay with us."

Don't know what to do

sickasachip13

Oh my. The first thing to say is that you do not need these companies - at all! CCCS and Payplan both provide DMPs without charging you - which means a little extra money towards the debts.

CCCS is a charity, they have a question thread at the top of the debtfreewannabe page - why don't you ask them about the contract situation?

I'd urge you to change to a free DMP asap. We're with CCCS and have found them incredibly helpful and supportive.

Make contact with them!

SAAC

BlushingRose

sickasachip13 wrote: »

I'd urge you to change to a free DMP asap.

SAAC

Please do this!

Monostich

But I've only just signed up with the new company so don't really want to change AGAIN.

I just wondered if I am legally bound to the original company I dealt with for 4 years?

BlushingRose

You'd probably have to look at the contract you signed to know for sure.

Why wouldn't you want to go with a *free* charity which would mean extra money going to you or your debts?
Give CCCS a ring, at least and discuss your issues with them. I'm sure they'll be able to offer you some advice at the very least.

Monostich

BlushingRose wrote: »

You'd probably have to look at the contract you signed to know for sure.

Why wouldn't you want to go with a *free* charity which would mean extra money going to you or your debts?
Give CCCS a ring, at least and discuss your issues with them. I'm sure they'll be able to offer you some advice at the very least.

I'll give them a call, thanks

After doing a bit of research, apparantly we can change DMP providers without incurring any penalties.

Just can't wait for Money Debt and Credit to confirm this.

Monkeynut

My OH went through trying to sign up to these sorts of companies when trying to deal with his debt problems when things started to spiral out of control, before he told me about them and we discovered this site etc!
Luckily his weren't too bad in the end, and we didn't need to go down the DMP route, but knowing all I know noe, largely due to the help from this site, I couldn't believe that these companies can even exist as they are just a waste of time and money. The fact that someone tries to charge you to sort out your debts is just pure ridiculous when there are companies who do it for free.
£35 a month, and you have dealt with them for 4 years, that's £1680, plus I bet there was some sort of admin fee when you first joined. Think of the debts that could have gone towards, and the extra interest you wouldn't have been paying on that money. It's in these companies interests to keep you in debt.
Even if you think it's a hassle changing again, it's completely 500% worth it.

Monostich

Monkeynut wrote: »

My OH went through trying to sign up to these sorts of companies when trying to deal with his debt problems when things started to spiral out of control, before he told me about them and we discovered this site etc!
Luckily his weren't too bad in the end, and we didn't need to go down the DMP route, but knowing all I know noe, largely due to the help from this site, I couldn't believe that these companies can even exist as they are just a waste of time and money. The fact that someone tries to charge you to sort out your debts is just pure ridiculous when there are companies who do it for free.
£35 a month, and you have dealt with them for 4 years, that's £1680, plus I bet there was some sort of admin fee when you first joined. Think of the debts that could have gone towards, and the extra interest you wouldn't have been paying on that money. It's in these companies interests to keep you in debt.
Even if you think it's a hassle changing again, it's completely 500% worth it.

I completely agree and have just found out that I'm not in a contract with my present or past DMP provider.

Although I do have to say, Kensington are a joy to work with. I've read on various websites that there are pros and cons to both the paid for and non paid services.

I'll be looking into CCCS and Payplan in the new year and see what they can come up with.

izzoh

Hi There... I was oringinally on a dept management plan.... then when my situation got a bit better I called them to increase it (of course they were delighted) but by this point I had a clearer mind.... and after doing my calculations.... I was paying them £75 a month to send my creditors late payments of my own money!!!!!! Can't bare the thought of how much they made out of me when I was fragile, but pleased I learnt alot in that time.

I asked payplan and they said that my 'contract' could be ended at any time. It is not a financial contract, merely an agreement. 14 days in writing, ots of phone calls and letters, lots of ignoring and I got through the wave. Set up arrangements myself with creditors apart from Capital one who were horrid and they were pleased as I could share the extra £75 between them... so they were getting a bit more than before.

My advise is DO NOT pay for someone to negotiate with your creditors, been there and done that. Bad idea. I wish I had known that companies do it for free (Payplan or CCCS) or bite the bullet and do it yourself. Why give you £35 etc to a company to do it for you when in a year thats £420! Imagine that off your credit card!

:)