Do debt-agencies work?

jenjen1

Hi

I'm new to this site and would like some advice from anyone who can offer it!

My partner and myself are in our early 20's and have debts totalling £12,000.

(If I am allowed to state the agency name can someone let me know as they might be able to help me)

We signed up with an agency who say they can help reduce our debt to 1 managable payment each month. We send them all our letters from our debitors and they contact them to arrange a lower payment plan. We have been paying £100 a month to this agency who say they will spread this money to make payments to all our debts. We started this last year and are still in nogatiations with our debitors. I have written to ask for a written statement of where our money is going as no debts have received any payment yet but all i got back from this company was a letter to say we must continue to make payments.

Does this sound right?

matt9713

Debt Management Plans are a good way of paying your debts in one monthly payment, providing the company you use is free. Companies such as CCCS & Payplan take nothing away from the money you pay them but other companies do.

If you are paying for services for a company to do that you are being ripped off and I suggest you get in contact with CCCS or Payplan

misspoppy

its generally adviced when someone is concidering one of these plans that the contact a non charging organisation eg CAB, Payplan, CCCS or national debt helpline. It sounds like you have contacted another firm who charges, I have heard that some of theses firms take their fee first and then pay the debts.

If you have signed up with a fee charging co, I am not certain of the next step, but someone else will be along that knows soon, in the mean time it might be worth calling one of the people i have listed their details are at the top of the menu page in DFW start here.

southernscouser

Feel free to name them and that way we can call them names!

What they sound like they are offering is a Debt Management Plan (DMP). This is an agreement between you (via them) and your creditors to be a set amount each month to pay off your debts. The problem with most companies is though that they take a percentage of your monthly payment for themselves.

The CCCS are a registered charity and do not take a percentage for themselves. 100% of your monthly payment goes towards paying off your debts.

jenjen1

Who are CCCS?

I am using Eurodebt Financial Services (or pentagon as it shows on my statements)

Thank you so much for everyones fast replies. Its got on top of me so much I'm glad I can chat to people in the same situation who do not judge.

misspoppy

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103204730,72152,#counselling

these are the not for profit counsellers Martin recommends

southernscouser

jenjen1 wrote: »

Who are CCCS?

I am using Eurodebt Financial Services (or pentagon as it shows on my statements)

Thank you so much for everyones fast replies. Its got on top of me so much I'm glad I can chat to people in the same situation who do not judge.

Ditch them straight away! They are scum! :mad:

Cancel your DD with them. How long have you been with them? What do you pay them and what do they take?

girltuesday_2

Having googled, found this: http://www.crw.gov.uk/undertakings+and+court+action/publish+public/228_1.htm

OFT made them amend their contracts, including the consumer's right to cancel and get money back. So if you do decide you're not happy with them and want to move to a non-profit like CCCS, you should be able to.

southernscouser

If this is them they have taken things to a new level!

http://www.eurodebt.co.uk/incentives.asp

They start rewarding you with gifts for encouraging people to sign up with them! They really are scum! :mad:

southernscouser

girltuesday wrote: »

Having googled, found this: http://www.crw.gov.uk/undertakings+and+court+action/publish+public/228_1.htm

OFT made them amend their contracts, including the consumer's right to cancel and get money back. So if you do decide you're not happy with them and want to move to a non-profit like CCCS, you should be able to.

Also it shouldn't matter as the OP shouldn't have signed a binding contract/agreement.

girltuesday_2

"If this is them they have taken things to a new level!

http://www.eurodebt.co.uk/incentives.asp

They start rewarding you with gifts for encouraging people to sign up with them! They really are scum!"

Scum is right! That's unbelievable!

There are quite a few complaints out there about these guys, including this, which sounds fmiliar...

http://www.complaints.com/may2002/complaintoftheday.may28.10.htm