DMP & Mutual Support Thread - Part 8

wanna-be-mortgage-free_2

Hi Earthmother

I'd just ignore them to be honest. You've done the best you can by setting up the dmp. I'd just file the letter. I've quite a few of those in my folder. Will make a nice little bonfire one of these days :rotfl:

Experian_company_representative

Free DMP providers like CCCS take a small cut from the money they distribute to your creditors. It's called 'fair share'. CAB face-to-face debt advice is also largely funded by creditors, but through an FSA levy on the industry.

James Jones

trainergirl

Hi

I've had the exact same letter from Lloyds loans dept today. Called them and got the same response. I'll let CCCS know and ask them to resend the paperwork.

It seems that Lloyds are quite aggressive in their approach!

Well they can't have what I don't have to give them!!

Depth_Charge

wanna-be-mortgage-free wrote: »

Thanks will take a read of that.

Also read on another thread the reason why some suggest token payments of even £1 is so the debt won't become SB.

Tell you it can get confusing out there. I guess you need to take suggestions with a pinch of salt and then do your own research to make sure you are fully informed of all your options.

Hi

I think you hit the nail on the head there...

Fully informed is the name of the game.

wanna-be-mortgage-free_2

Depth_Charge wrote: »

Hi

I think you hit the nail on the head there...

Fully informed is the name of the game.

Problem is who can be fully informed - as it's a nightmare out there. I mean who exactly knows the full law with regards to UE, SB etc. Or what DCAs can and can't do. I certainly don't and don't feel I could ever make suggestions to those in debt apart from sharing my own experiences.

Rakaposhi

Experian_company_representative wrote: »

Free DMP providers like CCCS take a small cut from the money they distribute to your creditors. It's called 'fair share'. CAB face-to-face debt advice is also largely funded by creditors, but through an FSA levy on the industry.

James Jones

This is at least misleading if not entirely untrue.

CCCS are funded via a voluntary percentage of the distributed monies paid back to them by the creditors.

100% of the money given to CCCS is paid to the creditors. They do not take a cut.

eyeopener2

Experian_company_representative wrote: »

Free DMP providers like CCCS take a small cut from the money they distribute to your creditors. It's called 'fair share'. CAB face-to-face debt advice is also largely funded by creditors, but through an FSA levy on the industry.

James Jones

Sorry

This is wrong.

CCCS are funded by the Credit Industry, that is correct, but to say that they take a 'cut' is wrong. This implies that not all the money you pay goes to the creditor.

It does. Every single penny you pay goes to the creditor (I should know I check my statements religiously).

I suggest you withdraw or re-phrase that comment as I think you have worded it in a way that can be misconstrued.

E2

MrsTinks

I also think it's worth pointing out that CCCS is a charity - I cannot begin to tell you just how closely monitored they will be by the charities commission! I went through some of the processes of setting up a charity years ago and I can only liken the scrutiny then and after as near on medically invasive!
Yes the "big boys" donate money - they realise they can not only write charitable donations off against tax, but they might also get some of their bad debts back with very little further investment of time and money through other means.
I don't pretend that CCCS or CAB etc are perfect - they are staffed by humans after all And humans are by nature not infallible

Hopelessly_Hopeful

Morning

If you read this by CCCS themselves, taken as a quote from the parlimentary submission, they receive from one of their funding streams
via a 'voluntary' contribution from the creditors as part of the fair share which equate to approx 10% of what they manage to get people to pay back.
_____________________________________________________


Supplementary written evidence submitted by Consumer Credit Counselling Service
CCCS and ‘Fair Share’ Funding – a note




It is important to appreciate that lender support for CCCS is based on voluntary donations that nonetheless provide us with a sustainable revenue stream. Market research shows that borrowers in heavier debt are more reluctant to speak to their creditors and do not want to pay for help. Creditors appreciate that the independent, high quality and holistic service CCCS provides means clients are better placed to repay their debts over time (through DMPs). To this end, CCCS disbursed £289 million of client monies to creditors in 2010, while the charity’s income from FSCs was £28.6 million (90 percent of operating income).

______________________________________________________

My position is they need to be funded somehow, I certainly appreciated going to them at the start. I do think their primary concern is to the creditors though and I think they should be more transparent about their income streams. Whilst I am grateful of the half way house approach I also question how impartial they are. 5 of my creditors charge interest and CCCS have done zilch to ask them to stop this.

HHx

Time_to_face_the_music

Earthmother wrote: »

Hi all

We have paid two installments on our DMP and we are settling into our budget. It feels good to be finally getting control of our money. Lloyds however are being a pain. We wrote to them and they accepted CCCS are managing our DMPand said ok to the payments (One loan and one credit card). Then the credit card dept got the date wrong and said we weren't keeping to our agreement. I phoned and got a totally unhelpful foreigner who I couldn't make understand what was happening. CCCS said they would resend all the paperwork, problem sorted .

Thought things had settled down then this morning the Loan Department (who accepted the DMP and have not been a problem) have sent me a solicitors letter from SCM Solicitors in Sussex saying I must pay the full balance of the loan (over £18k) or they will start legal proceedings. Should I just ignore the letter seeing as they are accepting my DMP payments? I am wondering if it is just a case of one department not knowing what the other is doing?

I don't want to start ringing round if I don't need to as it takes ages to get them to understand you and they have premium numbers so the calls cost a few quid by the time you have finished. I don't want to spend money on phone calls if I don't need to. I have written letters each time I have had a letter from them saying I am behind, stating that I am on a DMP and CCCS are dealing, but they have never acknowledged them apart from the very first one when it started.

trainergirl wrote: »

Hi

I've had the exact same letter from Lloyds loans dept today. Called them and got the same response. I'll let CCCS know and ask them to resend the paperwork.

It seems that Lloyds are quite aggressive in their approach!

Well they can't have what I don't have to give them!!

Hi Earthmother and trainergirl :wave:

SCM solicitors aren't a firm of solicitors, it's just a name bought up by Lloyds TSB in order to scare people into paying what they haven't got :mad:

Don't speak to them on the phone, if you need to contact them at all, write to them at Lloyds TSB, Collections Centre, Brighton, BN1 4BE but my advice would be to ignore them.

Are they still charging interest or adding extra charges? If so report them to the FOS. We had no response to our DMP except for them to increase interest charges, the FOS got that stopped within 9 days of us contacting them. Oh and the grovelling letter from Lloyds TSB was almost as good as getting the interest back :rotfl:

Good luck and please let us know how you get on