A warning about gw financial services

ident

After warning my mum about using a internet company she proceeded. Paying a up front £100 2 months later none of the creditors have received a penny.

Refusing to give any refund. Want more money. Basically done nothing.

BillJones

There's a lesson in there, if she looks hard enough.

fermi

From their T&Cs

4. How we will be paid
4.1 We will take from each monthly payment under the Debt Management Plan a gross fee equal to 15% of the periodic payment under the debt management programme. However, this is subject to a minimum fee of £37.95 per month (or any other fee that is agreed with you in advance)
4.2 As most of the work for you will be done at the start of the programme, we will retain as a fee the initial monthly instalment to reflect the work in establishing the programme,
4.3 Each June / July we will charge an annual financial review and audit fee equal to but not greater than a single month's payment. We will endeavour to ensure that in this month any priority debts will receive the expected pro rata payment. We will contact all of your creditors to review each debt individually and look at ways in which you may be able to pay off your debts more quickly. We will make use of the services offered by our trusted panel of business partners to identify ways in which we can save you money. We will also use the information gathered on this review to send new proposals to your creditors in this month and negotiate to reset the arrangements with them.

6. Your right to terminate
6.1 You have the right to cancel this Agreement under section 1.4
6.2 You may also cancel this Agreement at any time if the total Fees payable under the Debt Management Programme differ significantly from the fees we estimate to you at the commencement of the Agreement provided that this right to cancellation will not be available in the event that such difference in Fees is due to any misrepresentation by you of your finances, including, without limitation, your Creditors. In the event of cancellation under this section 6.2, we reserve the right to retain the Initial Fee.
6.3 In addition to your right to cancel under sections 6.1 and 6.2, you may also end this Agreement at any time by giving us two weeks prior written notice which you may serve at any time whether or not you believe we have been in breach of our obligations under this Agreement.

Cancel it and go with a non fee charging company such as stepchange, payplan etc...

sourcrates

ident wrote: »

After warning my mum about using a internet company she proceeded. Paying a up front £100 2 months later none of the creditors have received a penny.

Refusing to give any refund. Want more money. Basically done nothing.

As Fermi says, cancel straight away, cancel any direct debts to this company.
Hindsight a wonderful thing, these companies pray on the ill informed and people in desperate need of a solution, who have not realised they can either do this themselves, or engage a free debt charity to help them.
As billjones says, lesson learned