Are DMP offered by Payplan and CCCs etc really free?

Eager_Elephant

Hello,

I am actually a Money Adviser, I work for a charity and currently give my time for free.

I am not 100% sure how CCCS are funded but I am sure it is like any other charity who have to apply for funding they apply to Lottery, Comic Relief .etc. How they spend there money is for them to decide.

The charity I work for have had funding from banks before and it all goes in one pot, there is no hidden agenda. We still give impartial advice.

Payplan are NOT a charity, they are a not-for-profit organisation, all money that is made gets put back into the company to make it bigger and better. Payplan do not receive donations or grants from financial institutions. Payplan collect people's money and distribute it approx. 1 - 2weeks later. Once a month the banks, debt agencys.etc. are invoiced for a percentage of the amount collected by Payplan.

This is how Payplan can afford to help people for free.

This is why Payplan are so much better than a fee-charging company, Payplan pay all your money to your creditors and then claim money back later but 100% of your money pays your debt. With fee-charging they take a percentage before it is paid to a company so less money goes to your debts.

To me the obvious and best solution is non-fee charging.

The fee-charging companies are just money making scum, I have known people make 5 payments and still not a penny has been sent to the creditors. They are so busy pulling in new work they forget about the people already signed up.

I have heard of people getting CCJ's and court hearings for various debts after fee-charging companies said they would sort it and haven't. I know this can happen with non-fee companies as well but it is very rare as they always keep in touch with the creditor.

With regard to there being no end in sight, DMP's run for x length of time, Payplan have a similar recommendation to my charity in that if a DMP is going to last longer than 6 years you are better off going bankrupt.

The problem is that as Advisers you can only give advice, you cannot force people to do something.

I have known many people where bankruptcy is the best option but they will not even consider it, even if I don't agree with their decision I still give advice and help them in a DMP.
I usually say ok we'll review the situation in 6mths and hope that they have time to adjust to the situation.

Creditors ARE more likely to stop charging interset quicker as they appreciate the fact that all the debtors spare money is going to them.

Another problem with fee-charging companies are the amount they expect you to pay is more than the amoutn you can afford, the expenditure they allow you is very tight and I have known them to include irregular overtime as income so that if no overtime was done they would still have to pay the same amount.

Although I have written all the above, I believe GSF has a hidden agenda but I am happy to put my view in because I feel I have a better insight than most into these companies.

EE

southernscouser

Easy slip to make! :rolleyes:

I've had my say and I will bid you farewell! :beer:

southernscouser

Eager_Elephant wrote: »

Although I have written all the above, I believe GSF has a hidden agenda but I am happy to put my view in because I feel I have a better insight than most into these companies.

I appreciate the time and effort you have put into your reply. Sadly I just think this clown is a wind-up.

Hopefully though we have persuaded any lurkers not to fall for this crap he insists on spouting.

gingersilverfox

Thanks Eager Elephant for Pay Plan contributers see http://www.payplan.com/organisations-that-support-payplan.php.

Yours with no hidden agenda.

gingersilverfox

SS
Can't help yourself can you.
"Please be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree, courtesy helps." Not my words see above.
Please try and obey the house rules. Some people respect your opinion but when you start with the obscenities then credibility flies out the window.

I am not on the wind up. The earth is not flat!!!

Eager_Elephant

Reading that it says that the following companies support Payplan, it does not say they CONTRIBUTE money.

And anyway Citizens Advice Bureau do not have debtors so that list is not financial companies and what about Boots - I am sure they don't have debtors either.

I stand by what I said earlier regarding funding for Paypaln.

EE

gingersilverfox

EE
Did you read the webpage?
"Although we are supported by the credit industry we work on behalf of you, the client, and always offer impartial advice."

GSF

Eager_Elephant

Yes I did read that but support does not have to mean in monetary terms.

I see it that they are just being open about the fact that some banks.etc support them but even the ones who don't will get their money (as said previously by someone else)

I think you are just trying to pick fault.

Unless you can give me a good reason to go with a fee-charging company then I stand by my opinion.

I have been doing my job too long to think highly of fee-charging companies.

I don't wish to get in a tit for tat debate, I have said my bit and have far better things to be doing.

EE

southernscouser

gingersilverfox wrote: »

SS
Can't help yourself can you.
"Please be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree, courtesy helps." Not my words see above.
Please try and obey the house rules. Some people respect your opinion but when you start with the obscenities then credibility flies out the window.

I am not on the wind up. The earth is not flat!!!

Yeah yeah! And I'm not in debt!

Tell me why the only thing you have done since joining this website is advise people to go for an IVA?

C'mon, be straight with us. Who do you work for? :rolleyes:

If you won't be honest with us go crawl back under your stone. You are ten a penny. I've seen people like you come and go. Bit like the plague really.

If you don't like what I have to say report me to abuse. It's the little red triangle on every post.

Scottishmummy

Re your comment regarding sensible 77. I currently only pay £185 per month to cccs to pay off my debts which started off at nearly 70k. We take home less than £800 per month. At that rate it will take me 30 years to pay off. So by your reasoning I am insolvent and should go bankrupt or take on an iva. At no point have I ever even considered those options. The debts were run up by myself and my DH (apart from the bank charges but they will be claimed back) and we plan on repaying every penny. We have £60k equity on our house and do not want to lose that. We cannot release it to pay off the debt as we cannot get another mortgage.

It actually strikes me that you don't have a clue as to what a DMP actually is. Try finding out then come back and post constructive criticism. We might listen then