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  • FIRST POST
    • MSE Guy
    • By MSE Guy 28th Sep 10, 9:02 AM
    • 1,628Posts
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    MSE Guy
    MSE News: OFT crackdown on debt management firms
    • #1
    • 28th Sep 10, 9:02 AM
    MSE News: OFT crackdown on debt management firms 28th Sep 10 at 9:02 AM
    This is the discussion thread for the following MSE News Story:

    "More than 100 companies face losing their licence after the trading watchdog uncovered a catalogue of abuses ..."

Page 1
    • Tixy
    • By Tixy 28th Sep 10, 9:34 AM
    • 31,062 Posts
    • 39,469 Thanks
    Tixy
    • #2
    • 28th Sep 10, 9:34 AM
    • #2
    • 28th Sep 10, 9:34 AM
    Consumers are expected to have paid 250 million in fees to debt management companies by the end of this year.

    Wow. Makes you sick doesn't it.
    A smile enriches those who receive without making poorer those who give

    or "It costs nowt to be nice"
  • samlawrie
    • #3
    • 28th Sep 10, 9:36 AM
    • #3
    • 28th Sep 10, 9:36 AM
    hi can you help me and my partner have just went with a debt managment company how do we know if its dodgy thanks
    • mallard
    • By mallard 28th Sep 10, 9:39 AM
    • 255 Posts
    • 75 Thanks
    mallard
    • #4
    • 28th Sep 10, 9:39 AM
    • #4
    • 28th Sep 10, 9:39 AM
    Good news but how about the OFT cracking down on all the DCAs and the cronies that work for them as well as the debt collection departments of some of the major credit card companies - they cause untold misery for thousands of people!
    • lindann
    • By lindann 28th Sep 10, 9:46 AM
    • 272 Posts
    • 143 Thanks
    lindann
    • #5
    • 28th Sep 10, 9:46 AM
    news about debt management company [merged]
    • #5
    • 28th Sep 10, 9:46 AM
    http://www.guardian.co.uk/money/2010/sep/28/debt-management-companies-warned-closure-oft


    Pay plan whom we are with is ok.. its work taking a look, think FSA or OFT, is taking a look at some practices of companies...

    wonder these sound apply to those inhouse, debt collecting, like

    reliable collection, mackenzie hall and others too

    best wishes to all
    • Barricade
    • By Barricade 28th Sep 10, 9:48 AM
    • 108 Posts
    • 63 Thanks
    Barricade
    • #6
    • 28th Sep 10, 9:48 AM
    • #6
    • 28th Sep 10, 9:48 AM
    Nice find lindann!
    Perhaps the money grabbing debt management companies will now face closure!
    Geek by Nature.. Geek by Profession!
    Home Owner as of 01/10/2014
    Married to my Soul mate 15/06/2018
    • Barricade
    • By Barricade 28th Sep 10, 9:55 AM
    • 108 Posts
    • 63 Thanks
    Barricade
    • #7
    • 28th Sep 10, 9:55 AM
    • #7
    • 28th Sep 10, 9:55 AM
    the review is here: http://www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/OFT1274.pdf

    Unfortunately.. the OFT have also said this:

    The OFT is not able to name the 129 companies because of disclosure restrictions under Part 9 of the Enterprise Act 2002. Where the OFT uses its formal powers under the Consumer Credit Act 1974 to refuse or revoke a credit licence, decisions are made public on the Consumer Credit Public Register.
    by OFT


    1.21 In some cases, it appears that business models may be set up to take
    the maximum amount of money from a consumer regardless of their
    circumstances.
    by Above Report
    Shocking!!!!
    Geek by Nature.. Geek by Profession!
    Home Owner as of 01/10/2014
    Married to my Soul mate 15/06/2018
    • fermi
    • By fermi 28th Sep 10, 10:10 AM
    • 39,669 Posts
    • 47,650 Thanks
    fermi
    • #8
    • 28th Sep 10, 10:10 AM
    • #8
    • 28th Sep 10, 10:10 AM
    Links to BBC comment.

    -> Firms 'exploiting' people in debt

    ->
    'None of the money went to creditors'
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • fermi
    • By fermi 28th Sep 10, 10:13 AM
    • 39,669 Posts
    • 47,650 Thanks
    fermi
    • #9
    • 28th Sep 10, 10:13 AM
    • #9
    • 28th Sep 10, 10:13 AM
    hi can you help me and my partner have just went with a debt managment company how do we know if its dodgy thanks
    Originally posted by samlawrie
    If it is not CCCS or Payplan and you are being charged fees, then you are throwing money down the drain and being exploited regardless of whether it was one of these 129.

    Switch to CCCS or Payplan. Everything you pay them goes to pay off your debts.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • dancingfairy
    • By dancingfairy 28th Sep 10, 11:39 AM
    • 8,961 Posts
    • 7,344 Thanks
    dancingfairy
    If it is not one of the recognised charities it does not mean they are dodgy but as Fermi has pointed out they will at the very least be charging you for a service you can get for free from one of the charities
    df
    Making my money go further with MSE
    How much can I save in 2012 challenge
    75/1200
    • dancingfairy
    • By dancingfairy 28th Sep 10, 11:41 AM
    • 8,961 Posts
    • 7,344 Thanks
    dancingfairy
    Let's hope we start to see some of the dodgy outfits actually having their licences removed then and not just threats and warnings - we need some strong action.
    df
    Making my money go further with MSE
    How much can I save in 2012 challenge
    75/1200
    • debbieblueeyes
    • By debbieblueeyes 28th Sep 10, 11:57 AM
    • 166 Posts
    • 68 Thanks
    debbieblueeyes
    Hi
    Hello all, if all these companys are closed down will we be able to claim back the charges that we paid,i was with baines &ernst for 6 years,im now with payplan.
    • davidgmmafan
    • By davidgmmafan 28th Sep 10, 11:58 AM
    • 1,446 Posts
    • 522 Thanks
    davidgmmafan
    If it is not CCCS or Payplan and you are being charged fees, then you are throwing money down the drain and being exploited regardless of whether it was one of these 129.

    Switch to CCCS or Payplan. Everything you pay them goes to pay off your debts.
    Originally posted by fermi
    Totally agree with this, some of the advertising is very cleaver saying things like approved or sanctioned by the OFT, which meaningless cost everyone who isn't banned is kinda sanctioned allowed by the OFT to operate.

    If you are looking at an IVA you need someone to do that for you, there are loads so speak to several. If you are on a DMP this can be done for free, and with the modest sums involved (ie less than the 200/month needed for an IVA) any fees defeat the point. Believe it or not some firms will charge you for going bankrupt. You can do this yourself.

    Vultures.
    • debbieblueeyes
    • By debbieblueeyes 28th Sep 10, 12:10 PM
    • 166 Posts
    • 68 Thanks
    debbieblueeyes
    hi can you help me and my partner have just went with a debt managment company how do we know if its dodgy thanks
    Originally posted by samlawrie
    Hello, Are being charged for their service?if so call national debtline 0808 8084000 or payplan 0800 9177823,they do debt management for free wether its a dmp or iva.its government run.hope this helpsx
  • gerryscot
    Glad to hear OFT on Debt Collector's case aswell...

    Its about time they got their comeuppance,, think they're a law onto themselves...
    Last edited by gerryscot; 28-09-2010 at 12:22 PM.
    • angelof1983
    • By angelof1983 29th Sep 10, 8:47 AM
    • 236 Posts
    • 6,646 Thanks
    angelof1983
    And about time too

    Glad to here these companies are being investigated as far too many think they are the be all and end all.

    As a debt adviser for a not for profit agency who provides FREE (no hidden charges) advice I cannot begin to tell you the number of horror stories etc that I have seen as a result of these companies.

    For anyone considering getting debt advice ensure you go to a not for profit agency CAB or search on CLS direct website for a local agency. OR call one of the free agencies - payplan or CCCS. National debtline refer to payplan for DMP's anyway.

    If you are using a DMP company then ask them upfront about fee's so you are 100% sure you know what is going to your creditors and what is going to the company. Not all of them are dodgy but as previously mentioned there are services that do the same free of charge.
    • Tixy
    • By Tixy 29th Sep 10, 3:34 PM
    • 31,062 Posts
    • 39,469 Thanks
    Tixy
    I think this is a wildly inaccurate estimate. I think the true figure, based on my analysis is c100m for DMP's and IVA's (including lender FSC providers).
    Originally posted by Nickpearson
    Well of course I'm sure you have more information to hand that the OFT don't you Nick?, on no wait, they have done extensive investigations prior to publishing their report, which might just be a little more thorough than your 'analysis'.

    Mind you if you bring the issue up with the OFT and they admit to using a wildly inaccurate figure in the report do let us know. Until then.........
    A smile enriches those who receive without making poorer those who give

    or "It costs nowt to be nice"
    • Tixy
    • By Tixy 29th Sep 10, 3:38 PM
    • 31,062 Posts
    • 39,469 Thanks
    Tixy
    Delighted with OFT report and its findings.
    Originally posted by Nickpearson
    Delighted? interesting.
    Most of us were horrified, though sadly not surprised by its findings.
    A smile enriches those who receive without making poorer those who give

    or "It costs nowt to be nice"
  • Lilyiana
    I don't understand how debt management companies can buy a debt which banks etc are insured for let's face it, and they only pay 10p in the for the debt so if they manage to squeeze you for the full amount that means they will make 90% profit, no wonder they can say they are giving you 75% discount they are still making 15% profit for what exactly? I have been put under tremendous stress over my debts, that only occured because I had two car accidents close together and I had to give up my business as a consequence. The whole thing with these agancies is a complete scam to steal our hard earned cash, absolutely disgraceful.
  • pepe2008
    Hi Tixy, I spend a significant amount of time talking to the OFT Debt Managment Team about the issues we pick up from customers who have previously sought the services of some of our competitors so I already had a pretty clear idea about the problem areas in the sector. The OFT have also kept DEMSA members well informed about the progress of the review. As I noted I am pleased with the report as it should take a significant number of the worst offenders out of the market, assuming the OFT has the bottle to follow through with licence revocations.

    In terms of the 250m that is a figure provided by Payplan and quoted by the OFT, the truth is no one knows for sure but perhaps it may be that some organisations have a vested interest in talking up the figure?
    Originally posted by Nickpearson
    Well, all we need now is an investigation into Debt Collectors who force Court Action through on a dodgy Credit Agreement ( or no agreement at all ) knowing that to do so is tantamount to Fraud.
    An Unenforceable Agreement is an Unenforceable Agreement....they know that. It isnt the fault of the Debtor that it is so.

    ...and NO DCA can put their hand on their stone-heart and say 'we never do this', of course you do. The letters you send and the threats you make are made either out of ignorance that there is no Enforceable Agreement because you bought the debt for a song and dont want the trouble or expense to check the debt was correctly found in the first place or its out and out exploitation using fear and ignorance as weapons against the uninformed and frightened.

    As a bunch of ignorant, two-faced bullies all DCA's should be ashamed of themselves.......particularly the ones who attempt to wear two hats by setting up a Division to 'help people resolve their Debt Problems',,,,,,,,,,,talk about crocodile tears.

    Thats it. Thank you.
    stay wonky

    ....one-way ticket to Portugal booked !
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