help please!

MrsTabs

think i posted this in wrong forum before sorry!

Hi

bit of a tale but i hope someone can help

about 3 years ago me and the other half found ourselves in dire straits financially ( various reasons overspending on credit cards and a major illness)

to cut a long story short we went into debt management with chiltern we gave them all of our debts etc and they told us an amount to pay and a term (105 months!) in which it would take to clear them

we signed up and since then have paid the amount set by them every week, have never missed a payment or added anything else to it. We have been doing this for 3 years and 3 months now no problems at all.

we recently sat and looked at the statements and were a bit concerned that given the amounts it all the debts would not be paid off in the term remaining ( 4 years 8 months) so we rang chiltern and asked the question, we were assured that all was fine and not to worry.

now today we receive a phone call from them stating that 'there is no way in god's sweet earth these debts will be paid in the term and we have to change to an IVA'

obvioulsy i'm a bit miffed, have just spent 35 mins on the phone to them asking how this can happen

they have stated that the term was an approximate term and as such there is nothing they can do.

i feel swindled! they now state that as the figures we supplied back in march 2003 differed from the amounts given to them by the companies ( which they admit were supplied by aug 2003) the term would be extended but that it what not their 'policy' to write to customers and tell them this.

they have basically let us pay into this for 3 years and 3 months THEN told us it won't be paid off!!

can they do this?

i still have the original paperwork which states (and i quote)

Once this system is in place, you will have the peace of mind which comes from knowing you now only have to make one affordable regular payment, and your oustanding debts will all be paid.

As it is too early to know the true figures at this stage we can only quote the maximum possible. If you choose to stay on this arrangement to completion it will run for 105 months


i have told them i am not happy and they have stated that they have now changed this letter to state it is not garaunteed ( a letter not sent to me!)

what can i do i am at my wits end chiltern have charged me £50 a month to do this for me, which over the 3 years is £1800 that i could have used to pay my debts!

i don't know what to do know can anyone help?

Storm

In terms of Chiltern I would contact the Financial Ombudsmen to complain, I'm sure someone will be able to post up a link soon.

As for your debts I would suggest contacting CCCS/PayPlan/CAB to see if you can switch your DMP to them - they're all not for profit, so if they administer the DMP for you they won't take a cut. They'll also be able to advise you as well if a DMP or IVA is better for your circumstances.

If you want to pop up a SoA (see SouthernScousers sticky) then we'll be able to offer some advise here too.

Good luck