My son is in debt by £28000. I have had to pay his cerdit card bills every month as he doesn't earn enough money to pay them.It has now got to the point where he owes us £6000 and I cannot afford to pay his bills anymore. The debts in his name are around £22,000. I found a web-site for Moneyexpert.com that said he could cut his debts by upto 75%. I entered his details and they called him back this evening. They offered the IVA scheme, which was the first that we had heard about it and felt that there was a light at the end of the tunnel. He is still working as a plumber but his wages have dropped by £1000 per month and now he can't afford these bills. However this company was asking for £241 upfront which they needed before they could apply for IVA with no guarantee that he would get IVA. They were very pushy asking for his debt statements to be ready for collection on Friday. The whole idea sounded briliant, but we are worried about the company that we are dealing with as they are not listed under your recommended people to deal with this. My son was told to cancel his bank account which is overdrafted by £1000. However 18 months or so ago we put in a claim with his bank First-Direct for unlaful bank charges for around £4000. There was a court case last week and the banks lost and it is now looking good for a refund of these charges which now could be over £5000. He also has an egg loan where they misold the Insurance policy and is also looking good for a refund of the Isurance fees and Interest. However my question is, if my son closes down his bank account as advised by money expert.com and also his egg loan, is he then still in a position to claim back these charges if these accounts are closed down.Also as I said before, we are worried about using the IVA service with Moneyexpert. com and he is looking for a no win no fee plan. So if you could recommend one that would be good and look forward ro hearing your advice on the cash back claims.
You should never use a firm who ask for money "up front or else". I am not even sure that this firm are actually insolvency practitioners, so you should also check that out.
An IVA might be one solution for your son, but given the circumstances you describe I would have thought that a DMP might be a better option temporarily, until the issue of his claims is sorted. If successful, he may be able to start meeting contractual payments again, thus avoiding the need for a formal insolvency at all.
If you do not feel happy with this company then i would suggest giving a few others a call, there are plenty of great companies out there (for example Melanie on this site) that will not charge up front fees and will make you feel a lot more comfortable
This is not the first time we have had bad reviews about Moneyexpert.com.
Visit www.iva.com for a list of companies and reviews. The companies are recommended. Make sure you query about upfront fees, althought the majority of them don't charge.
Make sure also that you are happy with the company you are using - five years is a long time to be in a relationship with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
A DMP is a Debt Management Plan and after you have talked to a provider (see iva.com) they will advise whether that or an IVA is the appropriate solution for your circumstances. Don't ever pay upfront fees as there are loads of reputable firms that offer the services of DMP or IVA without requesting upfront payments.
Speak to a direct professional firm asap. Let us know how you get on.
Last edited by David Mond on Thu Mar 05, 2009 4:07 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
i'm with moneyexpert.com and they have been great to me. They try and put you on a DMP first and thats why they ask for a payment. if you tell them your only intrested in an IVA then you don't pay anything until it's been approved! They give me a call 2 times a week to make sure i'm ok and to ask if i have any problems.so far so good!!
Do they do the DMP or IVA themselves or refer you on to another party?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I wouldn't hold my breath over the refund of excessive bank charges. As far as I understand the case is going to a further appeal and it could be ages before it is resolved one way or the other. Meanwhile all such claims are on hold and will remain so for the foreseeable future!! As far as the claims go, they are based on historical payments and I would have thought unaffected by closing the bank account. However, I presume any future payouts whilst in an IVA would be classed as a windfall.
I believe that the issue of excessive bank charges will eventually find in favour of the consumer and banks will have to pay up. I also believe that the House of Lords should fast track this final appeal hearing. That said even if an account is closed you will still be able to claim back any excessive charges made (once the ruling goes in consumers favour).
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Interestingly enough, I am led to believe that whilst claims can normally only be made to cover the last 6 years, in this instance it is 6 years from the date of the court hearings commencing, which takes it back to 2001. Well worth the price of a stamp if you are thinking of putting a claim in.
Regards.
Last edited by size5 on Tue Mar 10, 2009 10:18 am, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Money Expert have a inhouse Debt management company they go under the name of House & Homecare ltd or Immediate Financial. there IVA leads are passed to SDS in bury. If you want a IVA only go else were, if its a DMP then theres loads out there including mine hint hint lol. No seriously avoid them.
