Debt reduction company

Bassettcaravan

Advice needed please.
I have been on a debt management plan for approx 4 years now with Stepchange (CCCS). We owe about £16000 unsecured debts.
I am happy with Stepchange our creditors have stopped interest and we can see our debt going down all be it very very slowly.
I have recently being contacted by a company called Resolve (Haydon Associates) They are claiming they could have us debt free within 5 years maximum as opposed to the current 13 years it will take with Stepchange.
They are claiming using a combination of PPI claims, charge claim back proving the debt is unenforceable and then negotiating lower amounts we should only have to pay around £7000 back.

Is this for real? They do charge fees and for the debt reduction period it will be a 70/30 split in their favour for payment amounts.
Is it possible to do the unenforceable bit for yourself?
Am I mad to leave Stepchange?
We just want to get debt free as soon as possible but can not really afford to pay more at the moment due to massive reduction in salary due to redundancy and having to take a lower paid job.
thanks

lynz68

Do you believe you are entitled to a claim for PPI? You can do that yourself you don't need somebody to do it on your behalf.

Think logically why would you leave something that is costing you nothing to start paying fees elsewhere?

They can make all the claims they like but doesn't mean it will actually happen.

If it was me I would be staying with stepchange and look into the PPI for yourself.

fatbelly

Bassettcaravan wrote: »

Am I mad to leave Stepchange?

You'd be mad to leave a reputable fee-free organisation for a bunch of fee charging sharks who cold called you and made ridiculous promises off the top of their head that they have no idea whether apply in your situation.

Having said that...

It sounds as if your dmp is very drawn out. Been on it 4 years. How much longer to go?

Is there unclaimed ppi on any account? You should definitely make a claim

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

There's nothing to stop you requesting a copy of the original agreement on your consumer credit act debts (loans, credit cards, catalogues).

Full & final settlements are always available to those on a long term dmp but accessing lump sums is often the issue, and best not to do it if considering bankruptcy or a dro.

If or when individual indebtedness is less than 15k, would you qualify for a debt relief order? These only came in 4 years ago. Criteria are: rented accommodation, debts under 15k, surplus income under 50 per month, car worth less than £1000. One £90 fee, debt free in a year, stepchange can do them.

Monkeyballs

Hi!

I will happily look into* getting your debts reduced if you start to give me the money you are giving to StepChange currently and believe** I can get your debts reduced to £6000!

* I can't guarantee it'll work :-(
** Of course I have no affiliation to your creditors but I'll have a go for a 30% cut of your payments :-)

I have a rule to never go with anyone who contacts me trying to sell me a service, especially when what I have is working - if I want to change, I'll look into it and make my own decision.

Apologies if this all sounds a bit patronising, it isn't intended to be but I am effectively saying the same as what this company is...

If it was me, I'd stick with StepChange and maybe look at ways to increase my repayments to shorten the debt free date.

Or, do as Fatbelly suggests above...

Hope this helps?

Good luck!

chevalier

Stay with Stepchange, End of
chev

fermi

fatbelly wrote: »

You'd be mad to leave a reputable fee-free organisation for a bunch of fee charging sharks who cold called you and made ridiculous promises off the top of their head that they have no idea whether apply in your situation.

http://fca.org.uk/news/fca-warns-clients-of-three-debt-management-firms-to-review-their-debts

Proved very true.

DorisTrousers

I would echo the comments re steering well clear of debt reduction schemes.

You do also need to consider where you are now though. Logically, if you have £16k debt and it will take 13 years then it can be assumed that you are paying around about the £100 per month mark, give or take a few quid.

You also use we, so it sounds safe to assume that this is a joint situation?

What would help here is you can tell us if there is any reason you are on a 17 year DMP, and have not opted instead for a more formal route such as BR, DRO or even IVA? There may indeed be good reason, such as assets you need to protect, or your situation may have changed dramatically from when you started 4 years ago. DRO's, for example, were introduced in 2009, and so were available at the time you started your plan.

DMP's of the timescale you describe can be the right option, indeed sometimes they are the only option, but in the vast majority of cases they are not.