My experience phoning a debt free company, Gopher Money

pelic

I just wanted to share my experience using a debt free company. Not sure how normal this is, but I found the experience more frightful than helpful.
Basically was in debt of about £10,000, asked that I needed help and if they could assist me in consolidating all debt into a lower amount and just pay them by direct debit.
They were really nice and helpful to begin with, we went through all the debts together, and then they told me how much I had to pay each month.
It worked out 50 months or so, and when I calculated the amount it was close to £3000 more than my original debt was! She never once told me the full amount, on the phone I opened a calculator. She just kept assuring me how I was doing the right thing.
I said to the woman, I thought you were trying to help me out here, but what I repay you will be £3000 more than I owe, and that's without me taking offers for my debt etc, I would be aswell as just paying off this debt myself.
She then got really abusive asking me why I have not done that then. I told her because that is why I am phoning you now, I am looking to sort out my life.
Is this the normal from these so called companies who claim on their site how much they can help you, but in reality they want to rip you off badly.
The company was Gohper Money.
I have now arranged to sort out all my debt with the companies and have a much better deal.
I was also alarmed that they require you to stop paying all the companies you do have good credit with, she wanted to close all my bank accounts and everything.
I was alarmed at how they were when I thought I was phoning people who wanted to help me.
I am a strong minded person, but I worry about people who are more vulnerable and in debt when they meet people like this. Is this the norm?

sourcrates

Hi,

Unfortunatly you picked a fee charging debt management company to help you, they are only in this game for themselves, not you.
They are affiliated to Harrington Brooke's, this is there table of fees :


"The set up cost of your plan, which is set at 50% of your first 6 months payments up to a maximum of £1400 with minimum of £240. Whilst you pay initial fees, available payments will be made to creditors as soon as is reasonably practical.

Thereafter a monthly fee of £38 will be charged subject to a maximum of 50% of the payment received."

Stepchange and National Debtline are free debt charities who will help you out for free, no fee is charged.

Well done for stepping out on your own !!!

pelic

The costs were not all that shocked me, it was just the general attitude considering people who are in debt sometimes require a little friendliness/support, we are people wanting to change our mistakes. Not only was the woman very rude/aggressive on the phone, apart from the things I got like 'well why are you not paying your debts' etc, when I emailed after the call to confirm nothing was going ahead, I got an email back which simply said something like 'Done'...

Sanctioned_Parts_List

Oh snap! That's the name of the outfit I called, though I didn't realise it at the time.

During the "clutching at straws" phase pre-lightbulb, when I still thought consolidation was the answer, I made the mistake of using Experian's credit-matcher service.

Pro-tip: never do this.

I have no idea how many companies I was passed through, all without really making it clear that I wasn't actually talking to an Experian rep, before finally getting these Gopher Money/Harrington Brookes characters on the phone. To say they like their "hard sell" strategies would be an understatement - very upsetting experience.

Anyway, thankfully I googled them, found this board, realised that GM/HB were bad news and put their paperwork through the shredder. Took great delight in telling the salesman (for that's what he is) that I'd decided not to buy. Eventually started on the path to recovery, without paying a cent to anyone that didn't deserve it.

CRAs referring debtors to those who'd exploit them - who'd a thunk it?

Sazzie23

Thanks for the great warnings, heed ye all who read this

**** DONT GO TO A FEE PAYING DEBT MANAGEMENT COMPANY*****

If you need help or advice, try Stepchange, PayPlan, NEDCAB or negotiate your own. Don't let these companies rip you off, make sure you know what you are paying and to who.

Plenty of help and advice on the DMP mutual support thread, join us. We like company.

sourcrates

Sanctioned_Parts_List wrote: »

Took great delight in telling the salesman (for that's what he is) that I'd decided not to buy. Eventually started on the path to recovery, without paying a cent to anyone that didn't deserve it.

You hit the nail on the head there !!

"Salesman" that's exactly what they are.

They may dress themselves up as been there to help you, but when you boil it all down, they are simply relying on your vulnerability in order to sell you a product.

And that forumites, is the main difference between a debt management company, and a debt charitiy.

Only the latter is there to actually help you, the former just wants your cash.
By signing up with one, you are in effect adding another creditor to your list, don't do it !!!

Rebel_Cause

I used to work for a similar sort of company. Their whole premise was luring debtors into thinking they would be getting a consolidation loan, but once they were 'hooked' we would advise them that we would take care of their debt, tell them an estimated time the plan would last and advise the customer that there was a set up fee (which would be their first reduced monthly payment and that same amount they would pay to us for however many months.)

We would advise that we will deal with all the correspondence and we can TRY and get the interest frozen with the creditors. Every month they charge a fee from the payment you make to them and then share the rest amongst the creditors.

In essence, these debt management companies are just another creditor. On par with these PPI claim companies. Yes, they have a business to run so they have to charge a fee. Even if we advised of the costs of the service and the customer on the line had objections, while training we had a list of comebacks to the objections... for example, if the customer says the likes of Stepchange and National Debtline do not charge a fee, we would have to say 'they are overwhelmed with calls for their services because they are free, we offer a personal touch and we have a good reputation with the top creditors' I didn't like that, I thought it was unethical. One of the trainers there said he hated Martin Lewis!

I highly recommend the free debt management companies.

Deep_In_Debt

pelic wrote: »

The costs were not all that shocked me, it was just the general attitude considering people who are in debt sometimes require a little friendliness/support, we are people wanting to change our mistakes. Not only was the woman very rude/aggressive on the phone, apart from the things I got like 'well why are you not paying your debts' etc, when I emailed after the call to confirm nothing was going ahead, I got an email back which simply said something like 'Done'...

I suspect she was rude and aggressive because she probably realised that she would not be getting her commission or whatever.