debt Management company

boxer-man

If she stops paying the fee paying DMC they can do nothing else, there's no contractual arrangement with them. They'll throw a few tantrums but that's all - they'll make the claims they can do more than the charity based free companies but that's a load of the proverbial stuff that comes from the rear of cows!!
As others have said & I can only agree on, get her to change to a free charity based DMC immediately, I've been with payplan a while now and they're excellent too, importantly ALL the monthly DMP payment goes to creditors.
With regard to creditors, once she stops paying the fee paying DMP the creditors will start to get in touch about it with more tantrum letters, but that's all they really are. What she needs to do once she has talked to a fee free DMC is call or write to creditors to tell them the new arrangements and it may take a few weeks to get them set up but when it happens there will be more money coming to them than before - tell them explicitly you're moving from a fee paying company to a free one.
Good luck

boxer-man

Sorry, missed Sazzie's post above where they made most of my points anyway!!

Karen777

agree with the other posts - she can stop paying them straightaway. Stepchange are apparently very helpful and will help her work through everything and deal with creditors. I was with payplan who were also very helpful but am now self managed which may also be an option once she is feeling a bit more in control. But the company she is currently paying deserve not a penny more of her money!
good luck.

fermi

richardgc wrote: »

If she were to cancel their services she would save 65.00 a month, as that’s their fee.

Disgusting rip off! :eek:

richardgc wrote: »

Then recently the debt management team said due to a change in what I think is the FSA that she would have to start making payments of 120.00 a month.

There has been no such change to any regulation that would oblige her to increase payments like that.

If is just this company wanting a higher payment and hence fees. Greedy sobs.

Please see --> IMPORTANT - Where to seek professional impartial advice about your debts.

Get her to dump these crooks and go with stepchange or others for free, or her own DMP. Then £100 per month will go to pay off her debts.

Or even use the free impartial advice to examine if a DMP is still the best option.

fermi

Oh, and can you find out the name of this company please?

FireWyrm

Good lord, every week we see these stories. It is totally disgusting and amoral. These companies have sprung up in the last few years and people are actually starting to believe that you cannot pay off your debts or come to arrangements without their help for which they charge extortionate fees. The FSA absolutely must do something about this - at least publicise that you do not need a fee charging DMP company to administer any of your financial affairs. I vote for a sticky at the top of this forum (title in capitals) - 'why you dont need a fee charging DMP company'. We should post all of the most disturbing and horrific stories about companies going bust and people losing money along with stories like this showing just how venal and corrupt the companies are. £65 out of £100 this lady is paying is going towards the DMP company and only £35 to her legitimate creditors. It's like trying to dance with a flipping great elephant on your back.

Please, please, please, for the love of little green apples, stop using these companies immediately.

ampersand

richardgc -
FEE-FREE FEE-FREE FEE-FREE FEE-FREE FEE-FREE FEE-FREE FEE-FREE

[trying to make a rainbow of hope:-)]

I make an additional plea for you and your daughter to simply stop having anything to do with these thugs and lowlife scumpanies.

Martin has long praised CAPUK - in my signature - as well as Stepchange and others referred to. My knowledge of them goes back to mumoftwins on mse, nearly 10 years ago. These people save and change lives and care about every person they help.

To think that your daughter has been in the grip of graft-led Dickensian extorters for years[your 1st post]is heart-breaking and criminal.

PLEASE RING CAPUK NOW, HERE:
01274-760720

Look and listen here:
https://capuk.org/

Enter your daughter's postcode to see if there's a Money Course nearby.

Suzanne's story here:
https://capuk.org/i-want-help/cap-debt-help/introduction

Or you can refer your daughter directly:
https://capuk.org/i-want-help/cap-debt-help/refer-someone-to-cap

NOTE THE FREEPHONE NO, TOO:
0800 328 0006

These people are brilliant at what they do and regularly win national Business awards, as employers and leaders. They do not proselytise, but their principled work is because of their beliefs. Her life will be transformed, as will yours, seeing the difference in her.

Please report back.

fermi

So SH = Spencer Hayes?

Who have now gone into administration.

glentoran99

sourcrates wrote: »

And, as a further measure, she should write to this company and demand all her fees back, you say she's been paying for years ?


Was she aware of how much it would cost her ?


If she was ever in any doubt, she should vigorously pursue them to get all her fees refunded, if they refuse, take them to the FOS.


This kind of exploitation really gets my hackles up, these Fee charging Debt Management Companies should be banned, end of.

Under what circumstances could you get these back? as i paid a significant amount in fees before leaving GP

sourcrates

glentoran99 wrote: »

Under what circumstances could you get these back? as i paid a significant amount in fees before leaving GP

If it wasn't made sufficiently clear to the client, before they signed on the dotted line, exactly how much in fees, charges etc etc, this company would be taking every month, then you would have a good case for mis-selling.
She was obviously in a confused and vulnerable state at the time, and i doubt she fully appreciated what she was signing up to.

Most people, in a normal state of mind, would tell them to do one, charging £65 quid a month in fees, its just ridiculous, and as good a case of mis-selling as your ever likely to find in my opinion.

Complain first to the company in writing, if no joy after final response, or 8 weeks, escalate it to the FOS.
You would need to be able to demonstrate that you were either :

(A) Not made sufficiently aware of the cost involved,

and/or,

(B) You were in a vulnerable state of mind at the time, and could not reasonably be expected to comprehend what you were signing up to.