Are DMP offered by Payplan and CCCs etc really free?

Crown

SF, Why on earth have you dragged this back up. It was hotly contested originally. You have your right to your opinion and so do I.

My Opinion of you are you are a troublemaking "Internet troll".

I will also not be drawn into a slanging match so thats all I'll say and will let sleeping dogs lye, pity you cannot do the same.

rayday2

Spot on like I said you choose the options that help ease your mind the best.

I have to admit I like to be in full control I would panic at the thought of others doing things for me, that is nothing to do with debt that is my own personal personality flaw!

But when I read that people have bad letters and pass them on the ideal sounds wonderful!

I really don't understand what the original poster is getting at. Surely so long as we acknowledge and pay regularly whats the problem. The longer it takes to pay the longer we pay thats a personal choice !

gingersilverfox

Crown
If you are happy not to read my posts then don't. Your attitude to "free" DMC's is similar to those who don't bother thinking about where their cheap trainers come from (slave labour) or that £2.50 for a whole chicken represents value for money (not to the farmer or the chicken).

The truth is that we can't/shouldn't ignore why things like DMP's are free. Why are they free? If there is a cost involved, approx 10%, why is it not paid by those who incur that cost?

rayday2

I am sorry but in the debt I am in its cheap trainers all the way! The comparisons you gave bare no point in the fact if you choose a company with fees it takes you longer to pay - its your debt, your money, your choice.

Plus you could look at it the other way someone has a job and feeds a family doing a job like that!

I_was_a_fool

gingersilverfox wrote: »

Crown
If you are happy not to read my posts then don't. Your attitude to "free" DMC's is similar to those who don't bother thinking about where their cheap trainers come from (slave labour) or that £2.50 for a whole chicken represents value for money (not to the farmer or the chicken).

The truth is that we can't/shouldn't ignore why things like DMP's are free. Why are they free? If there is a cost involved, approx 10%, why is it not paid by those who incur that cost?

Surely if you believe that you must be anti "debt forgiveness" & anti IVA?

I truly do not understand why you say a free dmp is not OK but an IVA is? I think both are valid choices and the creditors will recoup their money elsewhere and yes, at the end of the day someone pays. I completely fail to see why one is OK & the other not Ok in your eyes.

AGB863

gingersilverfox wrote: »

Vindication in the form of this article http://www.timesonline.co.uk/tol/comment/leading_article/article1711875.ece
.

My arguments are:-
1. Expose the fees involved in generating a free DMP.
2. Make Debt Management a level playing field. The market will decide on what an appropriate fee is for this service.
3. Debt management companies which are sponsored by FI’s will favour the best solutions for their sponsors.
4. If all debt management companies were to charge a fee the customer would be king and the likelyhood of credit forgiveness would be a reality.

Your thoughts

I wish to put this over - I work for a debt management company that is a charity (not one of the national ones), which has to get its funds to operate
from various sources, trust funds, lottery and yes financial institutions.

But I have to strongly disagree with the comment that you made about showing favour to the FI's. This is not allowed. When we make any agreements for clients to repay their creditors, it is either done on

(1) a proportional basis, ie what the creditor has as a percentage of the total debt, they get the same percentage of any available funds that the client has after having paid out all of their priority payments

(2) token payments

We have to provide to all creditors a list of all the creditors,debts, income and expenditure and the amounts of monies being paid to each creditor.

We are not allowed to give preferential treatment to any non-priority creditor. To do so would mean that we could loose our licence to trade.

gingersilverfox

You have misunderstood point 3. FI's want as much money back as possible regadless of the impact on the debtor. Therefore, the FI sponsored DMC's will favour debt management over other options.

AGB863

gingersilverfox wrote: »

You have misunderstood point 3. FI's want as much money back as possible regadless of the impact on the debtor. Therefore, the FI sponsored DMC's will favour debt management over other options.

I have to disagree on this.

If a client comes to us and they ask for bankruptcy and that is their wish, we follow their wishes. We do not do IVA'a and if a client asks for recommendations for a company that we do it - we decline to give that information due to legal problems that can occur.

I will also say if we recommend bankruptcy and the client decides against it we will then offer them a repayment plan.

gingersilverfox

AGB
Someone who is potentially facing bankruptcy should not have to ask if they wish advice on bankruptcy!!
See my post above #64. Free DM companies are given targets for debt management plans. These companies are the experts, therefore should always give best advice and not wait for the debtor to suggest a solution.

I_was_a_fool

gingersilverfox wrote: »

AGB
Someone who is potentially facing bankruptcy should not have to ask if they wish advice on bankruptcy!!
See my post above #64. Free DM companies are given targets for debt management plans. These companies are the experts, therefore should always give best advice and not wait for the debtor to suggest a solution.

I simply do not believe this to be true. I would require more than 2nd hand anecdotal evidence to be convinced of that.

CCCS recommended IVA (scottish version, a trust deed) to me. I chose to do a dmp. I believe they act in the best interests of their customers AND allow the money available to be be fairly shared amongst the creditors. The service & support I have had from CCCS has been fantastic.