I must immediately set this point straight, to avoid any further confusion.
I will clarify that I was NOT suggesting that Brightoak's charges are 'Daylight Robbery'. I was referring in this instance to the example Andrew had quoted. My placing of the phrase in mid message could have been more precise and should have made clear reference to the example.
I appreciate fully that have been very open, honest and frank about how those aspects of your business work. I would also thank you for being so, on this forum.
I would hope that your take on Debt Management is one that is adopted in the majority of firms providing such services. It seems not though looking at some of those examples that you have quoted, which do, to me anyway, seem to be taking the proverbial somewhat and I suspect will probably account for a high percentage of those that fall by the way side within two years.
As I said, I have very little experience of how debt management companies operate and how they are regulated. My questions were asked out of curiosity. I'm not in anyway having a go.
I asked the question originally 'Is it not going to come down to what the debtor has the ability to pay?'
From posts on this particular thread, it seems that that is not necessarily always the case. What I fail to understand is how those who set an expenditure limit can do so without apparently having any flexibility. Not everybody has a template life. If you are being asked to fit to a template lifestyle, then perhaps you should be considering alternative options.
In a choice between flexibility and rigidity, I think I know which I would choose.
I don't know if this is a question that Andrew can answer, but it is worth an ask, in case there is anyone else on here with the answer.
In negotiations with creditors, would I be correct to assume that you reach agreement to freeze interest and charges, to prevent further inflation of the debts? Prior to them receiving payment do creditors provide you with a figure that details the amounts owed to them?
As a rule, how long does that interest and charge free period last? Do they 'In principle' agree to do so for the duration of the proposed Debt Management Plan? Or is it subject to regular review by the creditor?
Basically I am wondering if the creditor would provide an identical figure to a fee charging Debt Management Company that they would to a Debt Management Company who the creditors themselves would actually be funding?
If a debtor uses a fee charging company, the fee is deducted prior to payment being made to the creditor. At the end of the DMP, the debtor is debt free, the DMP provider has been paid for the function provided and the creditor has received 100% of the monies owed to them. All of this is at the debtors expense and so as far as the creditor is concerned they're thinking everyone is a winner.
If a debtor uses a non fee paying company, the creditor gets 100% of the money owed to them, but then shells out X% to the non fee charging Debt Management provider as payment for their services (If my interpretation of earlier posts is correct)and so opposed to having 100% of the debt, they've now only got 100-X% of the debt. So can they and do they inflate the amount owed to them by way of levy for 'allowing' the debtor to repay the debt owed by Debt Management Plan in that instance?
I suppose it all comes down to how the lender wishes to portray figures in their balance sheets
Tell it like it is.
Tell it like it is.
