Certainly are - it's about time some of these companies were shut down.
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
Exposure of poor practise is always a good thing as long as the good guys don't suffer too. There are some excellent DMP companies who hopefully will not get worngly tarnished with the same brush. Like IVAs, if managed well and it's the best option for the client they are a good solution.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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There are things you pay for in a service and things you shouldn't be. Yes, we 'pay' for an IVA with the management of creditors and debtors in 5 long years.It's worth the 7K or so fee I guess.And IPs are qualified accountants doing the work with a support team.
AS for fee paying for DMP management???...the FSA aren't all that keen and the DMPS are mostly a stop gap before the IVA, being the real thing comes through.
I don't really approve in money been made on debt management unless it reduced the debt.As the DMP are non legally binding, you could not use it to say to your employers' doing credit checks that your debts are been managed unlike in an IVA.
MBNA say they don't default Credit files of DMP clients but the rest of the creditors' will.If all creditors do not default clients on DMP it might be worth considering if you are in a sensitive job...the Police,MOD
Go with Payplans and CCCS of this world.
Last edited by nomoremoney on Thu Dec 01, 2011 11:45 am, edited 1 time in total.
To me DMP's are like treading water and rarely sort out someones debt issues. Occasionally they are handy and are the correct solution to a problem if for example you are awaiting the sale of a house to pay off your debts. But they shouldnt be entered into as a long term debt solution as the debt will hardly reduce and the company running the show will earn a small fortune.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
When we started our DMP, we were told that they would be taking a fee, but we found out that they weren't even paying the creditors the amounts that they were sending me a statement showing !! Although we knew defaults were inevitable at some point, the only ones who actually did default us during the last 11 months of the DMP were our 2 banks where we had a coupld of current account overdrafts, none of our loans,or credit cards or the catalogue defaulted at all, and the banks said they only did that because the payments from the DMP company were late !!!
I am SOOOO glad that we found you guys and Mel's team !!!
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
I am in a self adminstered DMP with three creditors and have been for almost three years. I have got my debt down from £32,000 to around £14,000 in that time, still a long way to go I know but I'm making progess [:D]
To me though I would never pay fees to a company to set up and run a DMP, if I had then my debt would still be a lot higher!
Setting up my own DMP was pretty easy, just a case of writing letters and do expenses charts etc, okay I have to deal with the six monthly reviews etc myself but so far I have found my creditors to be extremely helpfull and easy to deal with. Again, no reason to pay a company to do this for you.
Sainburys have said right from the start that if I pay off the total balance then I only have to pay 75% of the debt. They are also not charging any interest at all on the outstanding debt so my £130.00 a month to them simply goes straight to paying off the debt.
I had a DMP for 10 years, 5 years where the CAB helped and then the remaining 5 years where I had to run it myself as the CAB unfortunately were unable to continue to assist at my local branch. The CAB initially got all interest frozen which meant that throughout the 10 years I did repay some of the debt - initially my repayments were £1.00 per debt until I found work following a marriage break up. This was fine until the debts were transferred to collection agencies and/or sold on to other companies. I was offered the opportunity to reduce my debts for a knockdown amount by some of the new companies but I was never in the position to do so and I received many letters and numerous calls at any time of day. Also many of the new companies who bought the debt were extrememly aggressive and in all honesty it was too difficult to manage and deal with the constant calls, reviews and demands of increased payments every 3 months. Ultimately my husband and I were left with no disposable income which meant we borrowed further. For us therefore an IVA was preferable. I agree that DMP's can be good if the debts are not extensive, you can get agreement for the interest frozen and you are happy to continually communicate with your creditors. However after 10 years I would say that we personally made little or no progress to reduce our debts.
We are all in the gutter but some of us are looking at the stars - Oscar Wilde. My blog: http://car1e.blogs.iva.co.uk/
