DMP - Interest and CCCS payment date

Hopelessly_Hopeful

Gimpsdad wrote: »

Fair question.

My gripe with CCCS is that they act in creditors interests firstly and debtors secondly, but as they are free to users it doesn't matter to the regulatory authorities as it is not seen to cost anything, and therefore cannot be criticised or examined. This seduces the media, and non professionals in the debt industry also, into believing that CCCS is beyond reproach.

The simple fact is that they aren't. By their own blurb, they believe that only 3% of clients with serious debt problems would benefit from IVA. They have 1 IP to look at IVA's for over 10,000 enquiries per month. Almost all of those enquiries will come directly or indirectly from creditor recommendations. Given that they have to pay wages, heat, light, rent etc like everyone else, then the claim that they are impartial when they recommend the vast majority of thier clients to embark upon DMP's which maximise the return for their paymasters and also their own commission income is risible. There are hundreds of threads, if not thousands, on MSE where people are on DMP's for exceptional lengths of time. Any reputable commercial company with both solutions in house that operated a ratio of 3 to 97 of IVA's to DMP's would be shut down by the OFT. A more realistic ratio is 35 to 65, so you are over 11 times more likely to obtain a legally binding solution with a firm that is not paid by creditors than by one which is.

If you are fortunate enough to obtain an IVA with CCCS then you will pay the same fees that you would elsewhere, they are a business as much as anyone else. Go to CCCS for an IVA if you are self employed and you won't get one, you will be referred to a commercial organisation. Why? Make your own mind up on that one. They defy OFT guidelines on DMP payments, because they claim special dispensation from the OFT to do so. They claim interest on held funds which again is against OFT guidelines. Whilst I am sure that CCCS would not mislead anyone on this, I have yet to see any sort of confirmation from the OFT that backs up their right to do things that all other organisations would face serious examinations for should they operate to the sane standards.

Despite the differences between the way they operate, and the way that everyone else is expected to operate, my main gripe is that tens if not hundreds of thousands of people are on DMP's with CCCS that benefit only creditors and CCCS and not the debtor. For the avoidance of doubt, the only ways that can guarantee an end to debt within a set period for debtors are Admin Orders (a bit obselete now, but still legal) DRO's, IVA's, Protected Trust Deeds and bankruptcy.

There aren't many people posting on here who are on any of these solutions, you are all on DMP's, that's my gripe. Don't get me wrong, there is a place for DMP's, the other solutions listed above will not suit everyone and if a DMP is right, then I would say that CCCS is a good place to get one. There is no way on this planet though that you can argue that DMP's should make up the vast majority of a debt agencies books if said debt agency is giving appropriate advice in every case.

Thanks again. This makes sense to me. I have often questioned how people can be on very long DMPs. To my mind it is inappropriate for them to recommend a DMP longer than 10 years in duration. I have also questioned that they rarely recommend an IVA. My experience has been that to my knowledge they have never negotiated for interest reductions for me even when I have asked them to intervene. The best they can come up with is that they can send another I&E!!!!!

I feel strongly that they should be more transparent about what they can and can't do.

I think they work to make your living allowances as tight as possible. Not to allow any money for a short break holiday is very poor and short sighted in my mind.

HHx

Hopelessly_Hopeful

Gimpsdad wrote: »

Yes you can.

Where a DMP is appropriate they are also a good bet as they charge no fees to the debtor. I am not aware that they hold your money for up to a month either. They are not a "charity" as CCCS are, and so would presumably have to fall into line with OFT guidelines along with the rest of the industry. I may be wrong on that, but I don't think so.

As one who has orgainsed thousands of IVA's or bankruptcies for those that had previously been on DMP's my own anecdotal evidence would say that around 90% of those in DMP's will achieve a lower repayment per month in IVA or BR than they would in a DMP, so I would slightly disagree with your point, but on balance you are probably on the right solution. It never does any harm to explore all solutions though. The only question now is who does it for you, Payplan, CCCS or do it yourself. You can make a case for any really, but if you are not comfortable with CCCS methods then you have a decision to make.

Hi

Sorry to hijack your thread TTFTM. Gimp could I ask if you have to have self managed 'signed off'. I have one creditor charging 25% interest. CCCS will not let me drop them off. I have tried to challenge but they say as i am now paying just over the min then it is tough.

HHx

Hopelessly_Hopeful

roni08 wrote: »

Quote - Time to face the music:-


"On the accounts still charging interest, the interest will go down as the balances drop"

Unfortunately this may not be the case. I am paying off my debts through a DMP and have been for 4 years, one of my creditors has now decided that my monthly payment is higher than the mimimum payment and are charging interest and also treating my monthly payment as a normal one, not a pro rata DMP payment. I shall be taking this matter further but be warned, some creditors do play hardball even if you are paying a good amount each month to clear your debts as quickly as possible.

They are more interested in lining their own pockets than trying to help you repay your debt to them.

I can empathise with this as the same is happening to me. One creditor agreed to a fixed lowish interest rate on the priviso I sign a CCA. Presumably so they are guaranteed it gets apid back rather than going UE etc. I think that is fair, veryone knows where they stand. Some others lured me into a sense of security let me have 2 years of min allwances and then reapplied interest. Had I know what I know now I'd have done more months of tokens or poss tried UE first.

HHx

Hopelessly_Hopeful

freshstart11 wrote: »

Its one reason why I felt it was better for me to undertake it all myself.

I felt it would instil in me the lessons I needed and get in to the habit of checking all my accounts every day but I know that I am only helping myself with this - no one else!

Oooh very interested to hear how you are getting on.I started a thread on whether to go self managed.

HHx

Gimpsdad

Just noticed this again. If your pro rata payment in a DMP is more than the contractual minimum, then it stands to reason that the creditor concerned will argue that you are not in financial trouble, therefore they will charge you interest. Again.

I am not going to bash CCCS again, I am tired of it, but it does seem that creditors have a lot of say, whichever way you look at it.