Payplan Review suggested a secured loan

dazla

I have been with Payplan for 4 years and have just under a year left on the dmp, as I .owe £5500. I had the annual review with them yesterday and I was surprised when the Payplan agent advised me that going forward a secured loan would be best for me, as it would reduce my monthly debt repayments. I have lots of equity in my home, so it wouldn't give me any worry and I am in a secure job. The company payplan suggested I talk to, has it's office in Grantham, the same town as where Payplan has it's office. So it looks to me that the finance company is affiliated to Payplan, so Payplan may be looking to make some money out of me via a high interest secured loan. I am feeling a little confused about all of this. Has anyone else with Payplan had this offer of a secured loan?

teeni

What ever they suggest do nt secure a loan on your house, the savings is not worth the risk of something going wrong. I am really shocked they would suggest that .

dazla

teeni wrote: »

What ever they suggest do nt secure a loan on your house, the savings is not worth the risk of something going wrong. I am really shocked they would suggest that .

I am surprised they have suggested it, but I am really not worried about a loan secured on the house, as I have loads of equity in it and the secured loan would be for £5500, if something went wrong I would sell my car and still have something left over...but my main concern is do Payplan have a vested interest in suggesting a secured loan with what looks like an affiliated company of theirs

Mrs_Nobody

I have had a similar scenario. Have been in a DMP with PayPlan for three years now. Had my annual review last week. We talked on the phone about options like secured loans (I am almost mortgage free so we agreed this was not a proper solution) and we also dismissed IVA and bankruptcy. At the end of the phone call, the adviser agreed that to continue the DMP was my best option.

However, got a letter through the post today from PayPlan outlining the options we discussed and it includes the phrase "based on the information you have given us, and our full assessment of your current debts, assets, income and expenditure, we recommend that you should now consider Secured Loan... as you own a property that is worth more than your outstanding mortgage amount, with one afforable monthly repayment..."

This appears to be in direct contradiction with what was discussed over the phone... but it does go on to say that because I refused that option, the DMP would remain in place....

I hope they don't send that letter out to my creditors too!

dazla

Mrs_Nobody wrote: »

I have had a similar scenario. Have been in a DMP with PayPlan for three years now. Had my annual review last week. We talked on the phone about options like secured loans (I am almost mortgage free so we agreed this was not a proper solution) and we also dismissed IVA and bankruptcy. At the end of the phone call, the adviser agreed that to continue the DMP was my best option.

However, got a letter through the post today from PayPlan outlining the options we discussed and it includes the phrase "based on the information you have given us, and our full assessment of your current debts, assets, income and expenditure, we recommend that you should now consider Secured Loan... as you own a property that is worth more than your outstanding mortgage amount, with one afforable monthly repayment..."

This appears to be in direct contradiction with what was discussed over the phone... but it does go on to say that because I refused that option, the DMP would remain in place....

I hope they don't send that letter out to my creditors too!

I had the same letter !

sourcrates

Payplan are not a debt charity, they are a commercial business, they are funded by the credit industry :

"Payplan is currently one of the largest commercial debt help organisations in the UK. The company has been running for 17 years and is part of the Totemic Group.

Payplan offers a variety of assistance including free debt management plans and individual voluntary arrangements.

They are able to offer free debt help to their clients because they are funded by contributions from the credit industry and from other commercial partners"


Notice it says "commercial partners", how much would you like to bet that one of these "commercial partners" offers secured loans ?

headachesrus

My dh is in his 10th year with pay plan, it has gone relatively smoothly, however they did suggest remortgaging to pay off his debts quicker. DH wasn't in a good place at the time and it nearly caused a big problem when I refused. Why should his unsecured debts, that he was paying, be transferred to me! I have recently found out that he has taken out some sort of insurance with them, I need to find out the ins and outs of this.

Stick to your guns on this, slow and steady and you will get there.