www.iva.co.uk

Hello All,

I am currently in an IVA with Melanie Giles and my F&F offer goes creditors on 31st August - just a bit of background so you know why I am posting on behalf of someone else. My experience with Melanie Giles and her team has been a very positive one and this is because I took note of the great feedback the company had received and so I was confident before I started. This was further cemented by the initial phone call I took from Tina was who a great help and understood perfectly.

My very best and closest friend of many many years phoned me yesterday in a big state. She, like me a few years ago, has realised that she is in a financial mess and called upon me because I had mentioned my situation to her some time ago. This was part of bigger conversation about relationships in general so I thought nothing of telling her how I had not helped my marriage by messing up financially.

Anyhow, to cut a long story short, she wanted my advice because yesterday morning she was referred to a company called DFH Financial Services and I think this was a recommended from the Credit Expert site so she was relatively confident that it was a good recommendation. She has approx £38k of debt in her own name and a further £15k in her partners name (she is currently uncertain as to whether to put them together or just to get her portion sorted out). DFH seem very reasonable and understanding (as you would expect) and they have recommended a DMP for her at £500 per month. Their fees seem reasonable (about £70 initial admin fee and then 17% of every monthly payment) but I am concerned that in her current fragile state (and she is very fragile) that I want to do as much research into how good this company are as possible. Does anyone have any advice or experience of these people please?

Whilst I don't want her to go with a problematic company, I am also concerned that now she has spoken to them and got a rapport with the case manager, any suggestion of trying somewhere else might also send her over the edge. I have to handle this carefully. Being a good friend and being someone who knows how stressful this situation is, it needs handling correctly. AGain, any advice you have would be appreciated.

She does own her own home (in her name only), it is currently worth around £130k and she has a mortgage of £95k which is due to finish in 4-5 years (which will be helped by some endowment policies that are due to mature in this time to the value of about £20k).

This company have suggested a DMP but have said that they can try for an early settlement when she is 50% through the process and it is highly likely that she will get a reduction on what is left. I had no idea that DMP's could run like this so I am at a loss of how genuine this advice is. I am also concerned that DMP's don't guarantee that creditors will freeze interest and payments (or do they now?) so there are no guarantees here either.

Any advice you can offer would be appreciated. Firstly from anyone who knows DFH and whether they are reputable or not and secondly on the course of action she should take.

Thanks all
Regards
Px

Hi

Not heard of that firm but I'm wondering why they've suggested a dmp when she has a fair amount if Di. Her husband would probably benefit from that.

Perhaps it would be a good idea if she spoke to a few other companies ?

Ask her to register and have a chat with us.

Thanks, I will have a go. She is not very computer literate and coupled with her current mental state, the suggestion of asking her to 'look around' is not going to be an easy one. Now she has taken the plunge and spoken to this company I think she will dread having to start again with someone else. I can only give advice to the best of my ability so I will certainly try.

Thanks
Paula

A DMP is going to take her a long time to pay off. If you can get her to speak to an IVA company they will treat her gently and you can always prewarn them and you could be there when she makes the call.

I would recommend getting together with your friend, ringing an IVA firm and your friend can then give permission to speak on her behalf.

I know that my head was in a complete mess when I started out on the journey and I emailed Mike Peoples @ McCambridge Duffy several times before I had the confidence to call him.

It may help her if you can converse for her.

I suppose that's part of the issue. She has been told by this company that they can make a 'Full and Final Offer' when she is about 50% through and it is highly likely that they will be able to get her a significant reduction. I did not realise that DMP's worked in this way and I always thought the idea was that they paid the debt in full. I guess the F&F position must be something fairly new on the understanding that creditors may be prepared to take a lump sum settlement which is less than the remaining debt? She has been told that at £500 per month (£415 after their 17% fees), it could all be paid in about 5 years. When DMP's are being promoted in this way, it is hard to promote the benefits of an IVA which by comparison (to someone like Julie who doesn't know any different) they seem far more restrictive and there is usually an equity clause in year 4 too.

I am finding the whole DMP story a bit confusing at the moment and what I don't want is for Julie to be sold on promises that may never mature.

Thanks again, I think I will need to sit her down and speak properly tomorrow. Hopefully by then, someone may have some info/guidance on DFH and whether their claims are correct.

Hi Kazzafunk, I am more than happy to do that, I just assumed this would not be allowable.

I will give it a go. I have already said that I will speak to DFH for her on Monday morning with the questions I think she needs to raise but I am guessing that if they are trying to win her business, they will give me the right answers regardless of how achievable they really are.

Regards
Paula

Have you googled them Paula? You should be able to get good or bad reviews (or both!).

I am not well versed on DMP's so other than googling the answer I don't know what to recommend!

I suppose the only thing I would say is that at least with an IVA you know the payments are set (unless there are changes of circs within the 5 years) and that you have full protection from creditors.

With a DMP creditors are not obliged to freeze interest and if they initially say they will do so they are within their rights to go back on any such agreement.

I have looked at Payplan on her behalf and they administer DMP's at no fees what-so-ever. Based on Julie's numbers, their website claims that she can reduce the term by 16 months and £8k worth of fees. This feels like a far more sensible solution for her if she wants to go down the DMP route. What I haven't done yet (and would not do without her agreement and her being present) is to talk to them and ask about whether they consider a F&F offer would be an option with a DMP.

Kazzafunk, yes I have googled them but as you have already pointed out, there are as many good reviews as bad ones. My tendency is to focus on the bad ones (which is not always the most sensible thing to do I know). Many companies have bad reviews but this is purely based on individuals circumstances and differing situations. The good ones are very good, the bad ones are pretty bad. I just think if there is a fee-free option with a DMP such as Payplan, it feels like a no-brainer to me. Clearly it's up to Julie in the end but the numbers seem to speak for themselves.

I will keep plodding on - I made a complete mess of my life (thankfully it's changed for the better now) and so I want to help her as much as I can. Apart from this forum and Melanie's team there was nobody to turn to so I want Julie to feel she has a benefit by being able to rely on me too.

Paula x

I'm wondering if this us one of those firms that hang on to the money for a while and then offer it as a full and final. If so then I wouldn't touch it.

Not saying that they are but I would check them out thoroughly

Yes, it's that kind of approach that worries me too. They seem to be making things out to be very very easy. I know an IVA is different but none of going through a financial situation such as Julie's (and mine when I started the IVA) is easy. The bad reports I have read have been from people claiming that their monthly payments are not being passed on to the creditors. However, the good ones are from people who can't sing their praises highly enough.

Hopefully if Melanie or Michael etc. pick up this question, they might be able to shed some light on the company or, the possibility of a F&F offer on a DMP.

Now you've said that about the bad reviews I'm pretty sure I'm right and they will hang on to the money and creditor hassle will continue.

There was a post recently where the person coukdnt get homd of the company to find out what was happening.

Tell your friend to be very wary.

Why is she preferring a DMP over an IVA Paula?

I actually have no idea. She was referred to this company and I think this was their first proposal to her. She has only spoken to them one and was in such a state thatntheynhave arranged to call her again tomorrow. They have taken the basic details and sent her the DMP proposal. My feeling is that as the amount was very close to my original debt and she also has a property to protect that she would be better with an IVA. However, I did wonder whether the fact that she has endowments maturing in approx 3-4 years that DFH might have thought that they could get this 'early settlement' via the DMP route. I have come up with lots of questions that I think she needs to ask but as she is so fragile, she has asked if I will ring them n the morning which I have agreed to do. I will ask about them about their suggested route at this point.

I assume that you also think an IVA might be the best route too? However, with her endowments maturing, will she have to hand all of this over as part of a 4 year review which would mean that she might be paying the full amount anyway?

Another thing, if Julie does take the DMP route, she does have money outstanding to 3 payday loan companies and I would imagine (although I may be wrong) that these companies are not easy to agree a freezing of interest and charges with? Do you have any knowledge of this Melanie? this is my concern with DMP, it seems to completely rely on companies doing just this or the costs could keep escalating and the term gets longer and longer.

Thank you
Paula