Best DMP company to use

welshspendthrift

Due to some of my debts suddenly being sold on despite my arrangement to pay being in place and adhered to. I contacted money advice line who are going to get a company called Clearstart to contact me. Money advice told me they charge a small fee but could not tell me how much. Having  done some research I am not sure they are the best. Any advice on best company / help. Was managing it myself but feeling out of my depth now that debts sold on to PRA and Intrum. I am going to ask for the CCA too. 

Grumpelstiltskin

Two words Barge and Pole.

Do not touch anyone who is going to charge you when you can use a charity who will do it for free.

Grumpelstiltskin

Read the sticky at the top of the board.
Updated Debt-Free Wannabe Sticky - links to important topics, help and template letters, are here. — MoneySavingExpert Forum

Fatsdom

I used Don't fret about debt, they were very helpful indeed. 

Grumpelstiltskin

Fatsdom said:

I used Don't fret about debt, they were very helpful indeed. 

And how much did they charge you?

sourcrates

Debt management plans are FREE when you use one of the debt charities in my signature.

Never, ever pay for debt management, typically they charge a 30% monthly fee, plus a similar amount just to "set up" your plan.

Shall i tell you what these companies actually do for that fee ?
they write a letter to each of your creditors, they tell them you can`t pay your bills, and are entering a debt management plan.
They then distribute your payment to them, on a monthly basis, taking their fee first of course.

Now can you write a letter ?
Can you use online banking ?

If you can answer yes, then you don`t need any 3rd party help, do it yourself, and keep your own money, or, use one of the debt charities that won`t charge you.

fatbelly

Having a third party help you with your debts can be useful, as long as they advise impartially and don't charge.
National Debtline, CAB and Stepchange are well thought of here, but of these only stepchange will set upand manage a plan for you.

If you live in the right postcode and they have current capacity, Christians Against Poverty can be an option.

In my work at CAB, if I refer outside for a DMP I refer to Payplan. While not a charity, they don't charge for DMPs

I'd be surprised if you can't find what you need out of that group. Here's Debt Camel's article

https://debtcamel.co.uk/debt-options/dmp/

welshspendthrift

I am definitely not going to use Clear start , I was dubious when I was told small fee, what they actually said was they charge £40 a month, the added that they charge £264 each month for 1st 3 months, when I said that I didn’t want to pay that , they reduced it to £102 for each month for first 3 months, that’s £306 that o can pay off my debts!! 

Yes @sourcrates I can do all of this, think I just lost confidence when l learnt that my debts have been sold on to debt collecting companies. I am going to send the CCA letter first to PRA group. Not had any communication from Intrum yet. If I struggle I will contact Stepchange, it’s sad that Money advice line are recommending these, think I will send feedback to say this is not helpful.Thankfully not stupid enough to take up their rip off offer. 

Suseka97

Dealing with the likes of PRA and Intrum is no different to what you have been doing direct with your creditors - see it this way, just a different name, address and account details. 

The reason your debts have been passed on is simply because creditors really don't want to be bothered with debt collection, especially when it is clear a person's financial situation is not a short term blip.

sourcrates

Agree with suseka97, debts are sold on a regular basis, it’s no different dealing with a collector than it is an original creditor.

Good luck with it, any questions, come back and ask.

fatbelly

I do hope that wasn't the Money Advice Line on 0800 138 7777  that you called.- that is part of the Money and Pensions Service that the government has set up to regulate debt advisers in the charitable sector!

Edit: Remembered who clearstart are - they are not registered to give debt advice and claim they do not need to be because they  are accountants not debt advisers. I have complained to the FCA about them.