Debt management firms selling 'unsuitable' plans, says FCA

Time_to_face_the_music

The BBC have an article on TV at the moment and also on their website: Debt management firms selling 'unsuitable' plans, says FCA

This may not be news to many of us but "More than half a million of these agreements are started annually, most of them with fee-charging firms" so please read and if you are paying a fee for debt management, stop NOW.

Here is the BBC article:

http://www.bbc.co.uk/news/business-26692111


Here is the advice you need from Fermi:

https://forums.moneysavingexpert.com/discussion/4228011


My personal recommendation is the NED CAB self managed DMP which I hope Fermi will add to an already excellent list:

https://nedcab.cabmoney.org.uk/dmp.asp

sourcrates

Back in the, lets say, early days, before I knew about this site, and didn't have a clue about debt management, or debt collection procedures, I must admit, I was conned into a DMP with a fee paying debt management company. It was only after about 6-8 months that I realised I was paying them around £350 a year for nowt so to speak, that was about the time I found this site, and got more knowledgeable on my rights, and my options, i cancelled my contract with them, and, for a few months, stopped paying altogether, needed time to gather my thoughts and consider my options, i had around £40.000 of unsecured debt accumulated over the previous 20 odd years, so a serious plan was needed to tackle it. I opted for an IVA, which seemed to be right for me, around this time all my accounts were with DCA`s, some of the really "nice" ones as well, 1st credit were total shysters, anyway my IVA was approved in may 2008, all the letters and phone calls stopped, instantly, now, nearly 6 years later, my IVA has ended, im about to get my certificate of completion, and im debt free !!!!
My debts were quiet high, so a radical solution was necessary, but there are free debt charities out there people, you do not have to pay someone to do a DMP for you, you can also do it yourself for free very easily, never ever pay anyone for a DMP !!!

Growurown

We nearly fell into the trap of going with a company that charged. When I looked for debt information online I just went to the first website I found. They were very nice and helpful and it was such a relief to know there was someone out there to get us out of the mire. It was only when I did a bit more digging around I found out about free providers. Fortunately we hadn't signed up for anything but I'm sure lots of people just go with the first company they talk to.