Random phonecall from Moorcroft

dragonsfire1981

It was definately the Stepchange adviser who said he would put me through to someone else discuss alternative options, and then he put me through to a lady who works for Debt Compare. At no point do I remember the IVA firm having any involvement in the refferal, unless it was them who made the reccomendation to Stepchange, and they were happy to help setup the contact, is that possible? I'm more and more puzzled by this.

What should I say to them tommorow?

sourcrates wrote: »

In this post you suggest it’s the IVA company that referred you, which would make more sense.
I can tell you now Stepchange would never refer you to a fee charging DMC.
It’s just so far out of their remit, they just would not do it.

sourcrates

This is what I think has happened here.

You were discussing an IVA with Stepchange, now IVA’s can only be set up by an insolvency practionaire, who only work for private companies, all IP’s charge for an IVA.

The IVA company assessed you, and for some reason recommended a DMP instead, so they would have passed you over to one of there sister companies to make that happen for you, a debt Management Company that charges a fee.

That is a lot more plausible explanation.

Either that, or you clicked on a spoof website purporting to be Stepchange, there are a lot of vultures out there.

dragonsfire1981

Now that is definately plausible. So both the IVA company Bennett Jones I think they were called and the DMC company are both Manchester based. After the IVA fell through, the chap from Stepchange said he'd put me through to someone who would be able to discuss alternate options, and that lady worked for Debt Compare.

What do you think I should do?

sourcrates wrote: »

This is what I think has happened here.

You were discussing an IVA with Stepchange, now IVA’s can only be set up by an insolvency practionaire, who only work for private companies, all IP’s charge for an IVA.

The IVA company assessed you, and for some reason recommended a DMP instead, so they would have passed you over to one of there sister companies to make that happen for you, a debt Management Company that charges a fee.

That is a lot more plausible explanation.

sourcrates

dragonsfire1981 wrote: »

Now that is definately plausible. So both the IVA company Bennet Jones I think they were called and the DMC company are both Manchester based. After the IVA fell through, the chap from Stepchange said he'd put me through to someone who would be able to discuss alternate options, and that lady worked for Debt Compare.

What do you think I should do?

Well it’s up to you, you can carry on as you are, but you will be paying what, a 30% fee every month ? Plus an annual fee as well, this money could be used to reduce your debt instead.

If it’s a DMP you want, then I can guarantee 100% either Stepchange or payplan can sort one out for you for no charge whatsoever.

If you tell SC what has happened, they will be horrified, and may pull out all the stops to help you.

You can cancel your current arrangement simply by putting it in writing and cancelling any payment option you have with them.

It’s your choice.

dragonsfire1981

I'd rather proceed with the option which will not charge me and allow me to pay off more directly to the creditors themselves so I'll speak to Stepchange tommorow; I assume I should speak to just anyone rather than the specific person who made the cockup of making me speak to the debt Compare lady?

Is what I'm on basically a DMP in all but name? so the lady said to me it was a "Personal budgeting service" that was similar to a DMP but technically not.

sourcrates wrote: »

Well it’s up to you, you can carry on as you are, but you will be paying what, a 30% fee every month ? Plus an annual fee as well, this money could be used to reduce your debt instead.

If it’s a DMP you want, then I can guarantee 100% either Stepchange or payplan can sort one out for you for no charge whatsoever.

If you tell SC what has happened, they will be horrified, and may pull out all the stops to help you.

You can cancel your current arrangement simply by putting it in writing and cancelling any payment option you have with them.

It’s your choice.

sourcrates

dragonsfire1981 wrote: »

I'd rather proceed with the option which will not charge me and allow me to pay off more directly to the creditors themselves so I'll speak to Stepchange tommorow; I assume I should speak to just anyone rather than the specific person who made the cockup of making me speak to the debt Compare lady?

Is what I'm on basically a DMP in all but name? so the lady said to me it was a "Personal budgeting service" that was similar to a DMP but technically not.

Fancy name for a debt management plan that’s all.
Makes you think your getting something unique for your money, when in reality it’s a DMP in disguise.

There are only the three regulated insolvency options, bankruptcy/IVA/DRO, set up by parliament, and the unregulated debt Management Plan.

These are the only debt repayment options in England and Wales.
Anyone at SC will be able to help you.

dragonsfire1981

Okay. Well tonight has been a revelation, at least I extracted this early on. I had wondered if something was awry. It's by no means the end of the world but it's a bump in the road, I'll let you know how the conversation goes tommorow, thanks for all your replies so far.

sourcrates wrote: »

Fancy name for a debt management plan that’s all.
Makes you think your getting something unique for your money, when in reality it’s a DMP in disguise.

Anyone at SC will be able to help you.

sourcrates

No problem, I’d prefer to see people pay off their debt quicker, rather than line the pockets of a DMC.

Good luck.

dragonsfire1981

Yes. When the chap told me there was a seperate fee, that was the first time I felt something was a bit odd. Luckily it has barely started so I've not paid an enormous amount to them but still would rather it all go to creditors. I'm too tired to be angry right now, and in any case the worst is already over as at least I'm taking measures to beat the debt, so am much more optimistic and less stressed regardless compared to 4 months ago.

sourcrates wrote: »

No problem, I’d prefer to see people pay off their debt quicker, rather than line the pockets of a DMC.

Good luck.

fatbelly

I'm subscribing to this thread. Debt Compare are an accountancy firm who believe that they do not have to be regulated by the FCA to give debt advice because they do not give debt advice.

I have previously referred their T&Cs to the FCA for them to look at in detail

Some trustpilot reviews may be genuine and some fake - iit's hard to tell which is which

From millions miles distance you are the best professional team! In less than one hour you change my lifestyle.A big, big Thanks!Congratulation!
Really the Best World Team!I’m sure your Manager is Proud about you.

Company literally poses on a website that looks identical to Step Change Debt Charity.

After entering your details on said website you receive a phone call from someone to understand your finances and expenses. I was fully under the belief after the first call and set up call, that I would pay the company 3 months worth of fees which I though fair enough to set up and IVA (Which Is what I asked for on all 3 calls) I understand that they normally require a fee to set up.

After agreeing to the proposed IVA, I’ve read through the terms and conditions. I have noticed I wasn’t just paying them £114 for the 3 months I would be paying them £40 a month, when I spoke to their team about it, I said I don’t mind paying the £40 per month as long as at the end of the 5 years the IVA will 100% end and that will be the debt squared. The company then text back saying I’m on a personal budgeting plan, never once mentioned on the phone call and was guaranteed I was on an IVA. So basically I would be £45 to the companies I owe money to and them £40. Literally go on Google and search Step Change Debt Charity and ring that number they offer this exact service for no charge, so rather than paying this absolute cowboy company you pay your debts off before you’re actually dead