Harrased by debt management company.

Kolo105

Hello.
So basically I have defaulted on one of big loan lenders.
I spoke to debt compare thinking they could help me repaying that using some repayment plan.
The lady sounded geniue over the phone and I signed some online forms before really checking the details...
Later on I searched them through google and found out they are not geniue at all and charge ridiculous fees and some people even said that none of the money they gave to them went to actual lender...

Now I have signed that online form but haven't send them anything like my ID or card details.

2 days ago I have received a message from them saying
They would take enforcement action to recover the accountancy fees.
Can they do anything?
Should I be worried?

It's quite sad that company that was supposed to help me is actually making me worried and stressed.

[Deleted User]

If you've committed to paying them for a service, they'll be looking to enforce that.

Check carefully what you've agreed to, particularly any cancellation periods and terms.

poppasmurf_bewdley

You have a 14 day period of grace to withdrawn from any agreement signed online.

Just email them, quoting the 14 day cooling off period.

This may help:
https://www.citizensadvice.org.uk/consumer/changed-your-mind/cancelling-a-service-youve-arranged/

And make sure you cancel anything you may have organised with your bank, so no money can be taken.

SuperAllyB

I wouldn't be surprised if companies like this waited until after the cooling off period to try enforcing any agreement. I can't see them alerting "customers" while.there is still an escape route!

OP doesn't actually say when online agreement was signed.

sourcrates

Hi,

Debt Compare are not a debt mangement company, they are chartered accountants, they sell accountancy solutions for individuals, and buisneses.
It appears you may have signed up to a "personal Budgeting Service".

This is an important part of any debt mangement plan, but its not debt management, if you see what i mean, this may help you to budget better, but has nothing to do with repaying any of your debts, and is a "pay for" service, you have signed up to something you do not really need, as budgeting advice is available free from any number of sourses.


I suggest you fill in their complaints form here :


https://www.debtcompare.co.uk/make-a-complaint

ignorance of what you were signing up to, may not carry much weight, but its worth a try to see if they can wave the charge as a gesture of goodwill.
How you deduced this to be a debt mangement company I do not know, as it clearly states its an accountancy website.

sourcrates

Kolo105 wrote: »

Hello.
So basically I have defaulted on one of big loan lenders.
I spoke to debt compare thinking they could help me repaying that using some repayment plan.
The lady sounded geniue over the phone and I signed some online forms before really checking the details...
Later on I searched them through google and found out they are not geniue at all and charge ridiculous fees and some people even said that none of the money they gave to them went to actual lender...
.

They are genuine, a genuine accountancy firm.


You, and others it seems, have completly mis-interpreted the service this company offer, they offer accountancy services, not debt management plans, I struggle to see why you thought this company had anything to do with debt mangement ?

The name, i grant you, is a tad mis-leading, but they are very clear what kind of service they are offering on their website, in future always read everything fully.

If its debt advice you want, then go to stepchange, they are a free to use debt advice charity, you will not be charged for their service, or post on the DFW forum, and we can offer better advice to you there.

Willing2Learn

Kolo105 wrote: »

So basically I have defaulted on one of big loan lenders...

Is there anything we can do to help you with regard to restructuring your finances?

Have you spoken to one of the free debt counselling services such as Stepchange, the CAB, Payplan or National Debtline?

If you would like advice, support and guidance from this forum on how best to tackle your debts, then you will need to complete a Statement of Affairs (SOA) and then start a new thread on the Debt-Free Wannabe (DFW) board. You will be able to copy & paste your completed SOA in to your new thread. (Please remember to first format your SOA by clicking on the 'format for MSE' button near the bottom of the form.)

PixelPound

Unfortunately there are plenty of companies who state helping people to manage debts but charge. Original creditors are paid, but often a pittance and when the DMP ends the creditors will come looking, and it's often at this point people find out that whilst they may have been paying a fair chunk of their income their debs have not decreased much.

There are plenty of FREE debt advice places and some will even help with DMP

The_Real_Cheddar_Bob

This is an excellent point. I made this mistake many years ago. Ended up with a CCJ as the DMC said to ignore the letters from the bank etc and send the letters to them. This was from Barclays.

I would do what you can if anything to get out of the situation with this accountant firm and make sure you respond to correspondence

Kolo105

Thanks for all The responses.

First thing.

No i haven't misinterpreted anything I was basically redirected to them through the phone.

1.The lady was super geniue

2.I explained my issue to her told her I'm in default.

3.She told me they absolutely CAN help me sort a repayment plan that would be 90 something a month never told me about the accountancy fees.

4.It was my moment of weakness ,my mistake I was at work and she was pushing me to sign the documents right away ,but she spoke to me like we will sort everything for you if the loan company call you just give them my number etc.
5.She wanted to get that CARD details right away including back of card pushing me again to do it right away I told her I would do it later.
Also was bragging how her company have great reviews on trustpillot or something.

sourcrates

Kolo105 wrote: »

Thanks for all The responses.

First thing.

No i haven't misinterpreted anything I was basically redirected to them through the phone.

1.The lady was super geniue

2.I explained my issue to her told her I'm in default.

3.She told me they absolutely CAN help me sort a repayment plan that would be 90 something a month never told me about the accountancy fees.

4.It was my moment of weakness ,my mistake I was at work and she was pushing me to sign the documents right away ,but she spoke to me like we will sort everything for you if the loan company call you just give them my number etc.
5.She wanted to get that CARD details right away including back of card pushing me again to do it right away I told her I would do it later.
Also was bragging how her company have great reviews on trustpillot or something.

Despite what this salesperson told you, yes salesperson, they were trying to sell you there products, they do not mention debt management on their website, they tried to pressure you into signing up for their “service”, well done for not doing so.

You can use all that as a defence if they try to get legal with you, I suggest you send a letter to the effect of what you have told us.

As regards your debt, if you want to post on DFW we can help with that.

No charge.

One other thing, do they have an address for you ?