Debt Mangement Companies filing for Insolvency

weatherlobe

Can anyone verify if it is true that the FSCS will not entertain claims for failed DMC's?
My OH has had a complaint of mismanagement upheld by the FOS but who will enforce it? A credit search has revealed next to no assets and what good is a judgment if it is unenforceable? The FOS reckons she's owed about £17K compensation, but from whence will come the redress?

Lensman_2

Sorry, but to give meaningful advice, we need a timeline of events and quite a lot more detail.

Powered_By_Pies

That unfortunately is a big downside to using fee-charging DMP's when there are alternatives such as step change and payplan who offer the same for free and are stable (to our knowledge).

Now admittedly I too use a fee-charging DMP in Gregory Pennington as it was a case of they provided my LBM and any thought of SC or PP went completely out of my head at the time. I may well switch to a free one once my finances are on a better track and more reliable. But I'm well aware that I'm effectively throwing good money after bad and intend on changing it once I feel able to.

Ultimately though, it's the individual's choice as to what service they choose. Sadly, quite a few of these types of providers are more of a fly-by-night type of outfit who've cashed in on a post-recession crisis and either squander the money they get or cut losses and run.

So sorry to say, but you could be entitled to all the compensation in the world, and it might not be forthcoming.

longtermplanner

Yes it's true. The FSCS only covers very specific circumstances. I assume your OH was foolish enough to fall for the 'we will accumulate your payments so you can make full & final settlements'. This is not a savings account and it is noit covered by the FSCS.

I am sorry but your OH probably has to put this all in the past and look at their current debt situation.