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| The independent answer to your debt problems | login join |
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Scotty
| 09-05-2007 03:47 PM |
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Joined: 09 May 2007 Posts: 2 | I am signed up with debt management company for 3 months now. I have debts of £56,356 and I am currently debt manageing my problem and paying £415 pound a month over the next 15 years. So far I have paid well over £1400 with set-up costs. The thing is the same company has now phoned me to say that I could pay off my debts in 5 years using an IVA. Now I am confused. If I am eligible for an IVA why was I not offered this the first time I contacted them? What will happen to the money I have already paid. What should I do? Confused |
| DW George | 09-05-2007 05:14 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | I don't know anything about your particular company, but I have come across DMC's who use similar tactics to sell IVA's. Now, IVA's are only suitable for those who are insolvent and really should be offered as a choice of solutions by reputable DMC's. Here's the angle. You are insolvent and contact a DMC. They naturally advise you to sign up a DMP and say it will take at least 15 years if the creditors freeze the interest rates. The DMC may say that they will get the interest rates frozen. They take a set-up fee and and you pay, in your case, £415 a month for three months. You may struggle to keep up with these payments, but you have been convinced by the debt adviser to push yourself and the debt will get paid off sooner. Then the DMC does nothing but collect your money for three months The hook They phone you back after three months. Saying that they have reviewed your circumstances and it appears that your financial circumstances would fit an IVA. Which means that all your debts would be written off, the monthly payments would be reduced and that all this can be achieved in 5 years. Result Where do I sign? The DMC gets £1500+ for doing nothing but pre-sell you an IVA. Something's wrong |
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Scotty
| 09-05-2007 05:39 PM |
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Joined: 09 May 2007 Posts: 2 | Thanks for your reply So what should i do? Are you saying that the company I am with has conned me? |
| DW George | 10-05-2007 05:07 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | Based on what you are saying yes, you probably have been subject to unscrupulous sales practices. The DMC should have correctly identified that you were insolvent and offered an IVA as an alternative solution to debt management. What I would do is confront the DMC and ask them if they have made any payments to your creditors. My guess is that they haven't. That being the case, demand that all your money is refunded back to you. If they won't do this then say you will start legal proceedings against them in the small claims court. If that doesn't provoke them into refunding your money then take them to court!!! |
| MALLORCASPAIN | 28-05-2007 11:02 PM |
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Joined: 28 May 2007 Posts: 10 My Profile | forget small claims very long winded, FSA is he best root tell the DMC you want you funds or you will go to FISA or FSA dependant on the company. You will find the cheque will be flying back to you these companie sdo not want people looking at there books. Write to them tomorrow and i bet you the £1,400 set up fee you have a cheque in your hand within 10 days. |
| James H | 12-06-2007 10:42 PM |
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Joined: 27 May 2007 Posts: 32 My Profile | Scotty On this occasion, take the advice of MallorcaSpain. The FSA will embrace your contact but simply threatening to contact them will work wonders. If the threat does not solve the issue......carry out the threat. It is free and very very powerful. |
| DW George | 13-06-2007 11:39 AM |
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Joined: 01 May 2007 Posts: 492 My Profile | Guys The FSA don't regulate debt management companies. Scotty The debt management company must have a consumer credit licence to operate. If you want to recover all of your money then the only option you have if the DMC fails to pay back your money is to take them to court. It may be useful to contact your local trading standards as they enforce the provisions of the Consumer Credit Act which regulates these types of companies. Perhaps a call from them will provoke them into to paying up. However, the remedy you are seeking is a civil one and that means only you can make them pay up by taking them to court. Send the DMC a letter with a small claims leaflet stating if they don't pay up then you'll take them to court. |
| James H | 13-06-2007 08:42 PM |
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Joined: 27 May 2007 Posts: 32 My Profile | Good call George......slap my wrist!!!!!! |
| mallorca | 19-06-2007 09:40 AM |
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Joined: 28 May 2007 Posts: 17 My Profile | DW George y6ou are correct, the FSA dont regulate secured loans either but you tell a broker you will contact the FSA they will drop there pants and do anything you want. FISA regulate secured loans and FISA is just a waste of time. |
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Drained
| 01-08-2007 04:01 AM |
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Joined: 01 Aug 2007 Posts: 1 | I signed up with Exodus Debt Solutions in October, 2006. My husband and I had come upon HARD times. He had shoulder surgery and was out of work for about a year and I soon fell ill and was out of work for several months. I contacted Exodus Debt Solutions and was in contact with an agent there, Micheal Martinez. He was very comforting and spoke about christian valuses and wanting to pay your debts but not being able to. He said he could put me in the program and in as little as a year I could possibly be out of debt. He said there was a nominal fee of $25.00 a month for contacting and speaking with my creditors. He also assured me that they would not proceed with Garnishments or court proceedings. We had credit card debt and medical bills that we couldn't make enough money to cover. He convinced me that Exodus was an honest Christian based company that only wanted to help me. (Yes, I swallowed it hook, line, and sinker.) Exodus has been taking $136.00 a month from our checking account and holding it. My husband got a supeona to appear in court on one of the medical bills and we called our representative at Exodus. He assured me that we did not have to appear in court because he would contact them right away and get the matter settled. He didn't. Not only did he not handle the matter but he didn't notify me that they would not settle the case with him. We knew nothing until my husbands check was garnished. We contacted Exodus and was told by Mr. Martinez assistant that he had tried but they wouldn't settle and they have too many clients to be able to call and tell us we needed to make arrangements to avoid garnishment. I ask them not to withdrawal any more funds from our account until we could figure out what was going on with our account with them. They continued to withdrawal and overdrew our bank account causing us to lose $70.00 in bank fees. To date they have taken $1,200.00 of our money and are now telling me that they are keeping $895.00 in fees. FEES FOR DOING NOTHING!!!!! We spoke directly to our credit card companies and they were more than willing to work with us to reduce our debt. Some went as far as taking off finance and late fees and reducing our balances by 50%. We only had 4 months to pay the account off and we are stretched to the max but if you can tighten your spending and belt you can do it. Please do not use EXODUS DEBT SOLUTIONS and advise your friends, even strangers against it also. They talk a good game to people who are down on their luck and at the end of their rope in debt, but they just add to your trauma and rob you blind. I am in the process of contacting legal advise on how to proceed. Please be careful and research any avenue you take carefully. |
| DW George | 01-08-2007 11:54 AM |
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Joined: 01 May 2007 Posts: 492 My Profile | Some useful advice there. Everyone should check out debt management companies before signing up. People with debt problems who contact DMC's are easy sales. They tell you what you want to hear-"we will handle your debt problem don't worry"-sold, and that can lead to the problems outline by Drained. Thanks for your input Drained and sharing your experience with us. I hope everything works out for you and your legal action is sucessful. Stay in touch George |
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rusty7778
| 28-09-2007 11:05 PM |
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Joined: 27 Sep 2007 Posts: 1 | In regards to exodus debt solutions i went through one of their programs and was very satisfied all my accounts were settled and i saved 46,000.00 dollars. I gues there will always be unhappy people in this world. |
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debthelp123
| 09-01-2009 01:51 PM |
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Joined: 09 Jan 2009 Posts: 3 | The thing is Debt management companies are not there to specifically get you out of debt, they are there to make it easier for you. The debt management plans are alos known as lower repayment plans and i am sure you can take from the name that they are there to lower your outgings. IVA are legally binding and are there to help you clear debt which you are no longer able to control. They can also make you bankrupt if you miss payments. based on that you need to decide what you want to do. if you think in a years time you will be albe to pay the proper full payments then stick with the DMP! |
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spiggot
| 14-01-2009 03:44 PM |
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Joined: 14 Jan 2009 Posts: 1 | Please please be cautious witn all DMC's. I am now redundant after working fpor citigroup in their collections department in manchester. DMA's are not there.. as the person above writes.. to 'help you'... they are there for one reason only, and that is TO MAKE MONEY OUT OF YOU!!!!!!!! Never use a DMC (Debt Management Company) they are a commecrial interest only and have no interest whatso-ever in you, your finanes or your problems. Why would anyone want to choose a so called DMC when you can get exactly the same service, done far quicker, amd far more efficiently. for free by one of the established debt charity organisations in the UK. DONT GO NEAR THEM! If you have already done so.. then cut your losses, get out now and contact an org such as CCCS, CAB, National Debtline etc etc and they will take over your case. |
| helpmenow | 14-01-2009 06:28 PM |
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Joined: 15 May 2007 Posts: 49 My Profile | I hear what you are saying, but the problem is that the so called debt charities (except CAB), who are financed by the finance companies, are suppressing the debt solution options. When I went to one of them they tried to get me signed up to a debt management plan which I think would last around 15 years, with no frozen interest. I started the DMP but soon realised that it an IVA would be better for me. Who pays for the free debt management plans and where does the money come from? It may appear free but is it really. I know this may sound a bit mixed up but is the option of free DMP better than a paid DMP? Worthy of discussion? HMN |
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debthelp123
| 15-01-2009 10:53 AM |
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Joined: 09 Jan 2009 Posts: 3 | QUOTE: spiggot Yesterday 03:44 PM Joined: 14 Jan 2009 Posts: 1 Please please be cautious witn all DMC's. I am now redundant after working fpor citigroup in their collections department in manchester. DMA's are not there.. as the person above writes.. to 'help you'... they are there for one reason only, and that is TO MAKE MONEY OUT OF YOU!!!!!!!! Never use a DMC (Debt Management Company) they are a commecrial interest only and have no interest whatso-ever in you, your finanes or your problems. Why would anyone want to choose a so called DMC when you can get exactly the same service, done far quicker, amd far more efficiently. for free by one of the established debt charity organisations in the UK. DONT GO NEAR THEM! If you have already done so.. then cut your losses, get out now and contact an org such as CCCS, CAB, National Debtline etc etc and they will take over your case. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX I wasn't specifiaclly trying to help. I was merely pointing the difference between the two solutions. If you dont think the DMP is a good option then don't do it but there is a lot of people all over the world using it and so it can't be all that bad. I have heard that fee free companies are niow struggling as they were being funded by the creditors. due to the current economic climate the creditors are finding it less appealing... so it may mean that even more people are having to use fee charging DMC's |
| paladin | 15-01-2009 01:06 PM |
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Joined: 06 Jun 2007 Posts: 240 My Profile | I agree with HMN that debt "charties" may appear free but are they providing the best advice, bearing in mind that they are being funded by the creditors and what creditors want is everyone to pay back their debts no matter what the emotional and physical costs are. I totally understand what you are saying debthelp123, debt management is not really a long term solution as there are no definites, ie the creditors will not guaranteeing freezing the interest or even guarantee not taking any formal action against debtors. Debt management is a good way to get people through a short financial stumble until they get back on their feet. As far as I am concerned, in relation to debt charities, there is no such thing as a free lunch. P |
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debthelp123
| 15-01-2009 01:27 PM |
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Joined: 09 Jan 2009 Posts: 3 | i completely agree with you... the problem is tha i, like many people explored all of the possible options. I explored the charities and in my opinion they are less 'capable' otherwise, why would anyone ever pay a fee. i currently pay a company and they are really good. |
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syl
| 18-09-2009 01:32 PM |
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Joined: 18 Sep 2009 Posts: 4 | Scotty you were ripped of big time. And I think you'll find that all companies are doing it. I spoke someone a comparison website and they admitted that they just sell leads and really it wasn't a comparison website. DMC pay 75.00 pounds for a lead. FISA repsresents creditors, FSA is a waste of space they take months to investiage, even after all the negative press. Your best bet is to contact Payplan or CCCS and sue the other company |
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ipsumlorem
| 15-10-2009 04:03 AM |
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Joined: 15 Oct 2009 Posts: 1 | what else do you know about exodus debt solutions? |
