My step daughter has debts of around 12k and is a single mum, just about to start a full time college course (she's 23).
She was cold called by this company and after 5 minutes they advised an IVA using the "its a government scheme that lets you write off your debts" line. They perfunctoraly went through an I&E with her which showed she doesnt have any disposable income (no surprise) then manipulated those figures and ended up by persuading her that an IVA over 5 years at £133 a month.
She wasnt given any information about creditors meetings etc, how the process works, just told the "the paperwork" would be sent out to her and that the first 2 onths payments would be made to them and they needed her card details, which she duly gave them.
She then found out the'd taken £32 out of her account the next day without telling her.
She's now rung them and told them she doesnt want to proceed with the IVA (if there ever was a genuine proposal) and wants her money back. I've googled this company and there are some horrible stories about peoples dealings with them. We'll keep pestering them to get the cash back although they say it will take them 2 weeks to process it (but only 1 day to take it out)
How can companies get away with these tactics? This company are part of Harrington Brooks, who I believe are meant to be reputable. How can we/she fight against this sort of awful targetting of vulnerable people?
The second question is...would a DRO be a better option for her than an IVA (which I dont think was ever a realistic option)If so, what would be the best way to set this up as I don't know an awful lot about them.
That isn't good Bradders and I hope she gets her money back!
With her level of debt and given that she has no disposable income and probably no assets then a DRO sounds like a good idea.
She can contact CAB or Payplan or CCCS to set up a DRO. Costs £90 and as long as her DI is less than £50 a month for a year then she will be debt free.
These companies are not supposed to cold call if they are calling from the UK so I'd consider reporting them if that was the case.
Get her to contact her bank asap to report this as there is nothing to stop them taking more cash from her account. I assume she gave them account details?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I would get her to close this account and then take out a new one with a non creditor Co-op come recommended.
As regards card details with the account she has now, get her to report her card as lost so that she can get a new one and nobody can take anything from the details they have.
I think that this will be a very interesting phone call, as the facts you have described would indicate that this company is not acting in accordance with the current Debt Management Guidance - and cold calling is illegal, so do find out where they got your daughter's details from.
A quick update...Step daughter is now in touch with the CCCS and has a follow up call with a counsellor next week. They seem pretty hopeful about getting the DRO in place.
Mr Cheetham however is beling slightly more elusive. It appears that he has an aversion to holding telephone conversation with mere plebs. That, or I may have mistaken his importance, and hithertoo not realised that being CEO of a company in Mancheter is akin to being the Dalai Lama. Whatever...I'm not giving this up, its a horrible selling strategy they employ and as CEO of the ultimate company he's directly accountable for it.
HB will have their own complaints procedure detailed on their website which you may need to follow in order to ultimately get to the CEO. Either way it would be in his interests or a senior representative of his to acknowledge you as this is not good PR for them and I'm sure their regulatory body would not be too happy to hear of this activity.
Keep us posted how you get on Bradders and glad CCCS have been able to help your stepdaughter properly.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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