Debt Management Fees

Daisy1210

Hi Everyone

I am currently sorting my finances with a reputable debt management company, who do not charge any fees

However....I was wondering, with the new finance bill passed last year ensuring Debt Managment companies are transparent with their fees, if you can reclaim from a previous management company??

The reason being I was told a percentage of my fees would be taken for their handling of my account - which is fair enough. However, my first 2 payments (totalling £1600!!!) were completely swallowed up in admin fees. They were slow off the mark with their admin and had only just sent 1 letter to each of my creditors and not 1 penny paid over. As a result I was being hounded and threatened with bailiffs because payments had stopped to them and paid to this management company.

I had not signed anything to agree to the first 2 months being taken in fees, as I would definately not have agreed to this. In fact there was confusion over my application as they were going down the IVA route, which I could not do, so think I'd signed the wrong forms and they never sent me any amended forms.

I was going to approach the company as their fees for the works completed are unreasonable, I dont believe this will be successful but wondered if it was worth contacting the Omudsman/FSA???

Apologies for the long explanation ...... I'm aware that managment companies do more than send a letter behind the scenes, but this really wasnt the case with mine

Any advice would be appreciated

financial_ombudsman_representative

Hello Daisy1210

I work for the financial ombudsman service, the free service set up by law to help sort out problems between consumers and financial businesses. If you feel you were incorrectly charged by the company, you should complain to them in the first instance and give them a chance to answer your concerns. However, if you remain unhappy with their response, the ombudsman service may be able to help. If you need any guidance on the complaints process you can call us on 0300 123 9 123.

Thanks

Phillipa

Daisy1210

Thanks Phillipa I'll certainly give it a go