DMP - IVA - BANKRUPTCY

[Nick Pearson]

Hi Paulgm

Thanks for your post. I note you said that in a DMP "the creditors rarely stop the interest and will pursue you very intensively." I can't speak for other firms but we get interest and charges frozen on 91%+ of all debts amd in an even higher percentage we get recovery action stopped.

Cheers

[MelanieGiles]

Welcome to the forum Mr Pearson - great to have you on board!

Nick's comments serve to perhaps highlight the advantages of the commercial sector where firms do work hard on behalf of their clients to negotiate stable repayment terms and bring certainty to the finances of people who prefer to see their creditors paid in full no matter how long that takes.

[Andrew Graveson]

I'd like to add my welcome to Nick Pearson as well.

Interesting to see debt management statistics like this starting to come into the open. Our numbers are very similar, as are those of another (very sizeable) commercial company that I recently noticed had added them to their website.

It's also to be remembered that amongst the debts where interest has not been frozen there will also be a very significant percentage of accounts where interest has been reduced.

[Michael Peoples]

It is great to see the commercial sector publishing these figures but I am curious if the so called 'free' or 'charity' sector do the same. A poster only recently stated that they were in a DMP for eight years with the CCCS and interest had not stopped. No commercial organisation would tolerate this and nor would a paying client.

[size5]

A very interesting thread, I have personally spoken to 2 people in the last fortnight who have paid their debt off with a free service only for the creditors to add the interest that they have lost back on at the end, so they now face a much longer journey.

Rare cases one would hope but nonetheless worrying.

Regards.

[kallis3]

I used a fee paying company and have nothing but praise for them. All interest and charges stopped. The only reason we stopped was the length of time it would have taken to complete.

[MelanieGiles]

The sooner we rid ourselves in this industry of the two tier debt managmeent system the better. I have time for both sides to be honest, but get sick of the bias towards the free sector which is so apparent in recommendations from banks to their indebted customers, coupled with the slagging off of my profession often made by certain tabloid journalists.

[Andrew Graveson]

I think that everyone working within the commercial debt advice sector needs focus on driving up standards to deal with these issues Melanie. We're sitting ducks for media criticism given the behaviour of certain commercial operators. Hopefully the work of the professional bodies, trade associations and the OFT in recent months (and going forwards) will start to make that a thing of the past.

[MelanieGiles]

I'll be a lot happier Andrew, when I see them publicly driven out of town, and some examples made of those firms who are clearly preying on innocent consumers - especially those firms who engage in bankruptcy assist by way of ambulance chasing and flippers.

[kallis3]

Totally agree Mel. I'm quite happy with Payplan but would probably have done more research if I had known just how many companies were out there.

I hate the ambulance chasers, they prey on the vulnerable and I liken them to the bogus callers who go round preying on the elderly.

[The Major]

Where are the vulnerable and where are the innocent consumers complaining about Bankruptcy Assist companies,THAT THEY HAVE USED, not the ones who just report on this website they have had a letter and binned it or sent it to size 5 is there anyone out there who will say yes I used one of these firms and I wished I had not, I was much happier totally penniless, I want my IVA back, because thousands of people have flipped from IVA to Bankruptcy, when they discovered they wasnt given the full picture.The only complaints about Bankruptcy Assist companies come from the IPs who are directly responsible for their creation to begin.IPs are legaly bound to work in the best interest of the creditors, whereas Bankruptcy Assist companies work for the best interests of the debtor, so surely they both have roles to play.

[Skippy]

The point is if anyone decides to go BR they can do it themselves, they don't need to pay the rip off fees charged by many BR 'assist' companies.

[Michael Peoples]

There is also the fact that these companies are unregulated and can leave the clients in serious financial trouble. There is no comeback unlike if you receive bad advice from an IP firm.

Many debtors are mislead by these firms and cancel their IVAs. Then when they realise the mistake they are bankrupt, subject to IPOs and facing repossession.

I agree that there is a place for bankruptcy assist companies where bankruptcy is clearly the best option. Completing the paperwork properly makes the OR's job much easier and often saves the clients from IPOs. This justifies a fee to the company for the work done but is totally different to the con artists who target those already in IVAs

[North East Derbyshire CAB]

Hi Paulgm

Thanks for your post. I note you said that in a DMP "the creditors rarely stop the interest and will pursue you very intensively." I can't speak for other firms but we get interest and charges frozen on 91%+ of all debts amd in an even higher percentage we get recovery action stopped.

Cheers

Welcome to the Forum Nick

NEDCAB

[Pandy]

I was in a DMP before switching to an IVA and Lloyds TSB who I had loans and overdraft with did not stop interest at all in fact it worked out for the £220 we were paying only £5 was coming off the debt, and the DMP was worked out over 13 years if the interest was stopped, in a moment of stupidity I worked out that at the rate it was reducing it would have taken over 200 years to pay off [:D][:D]
To be fair to B & E they did tell me that not all company's freeze interest, so I was warned. [:)]