Tuttsi's - CMC by the News of the world

Debtors targeted by dodgy claims firms





By Sophy Ridge, 21/06/2009
DESPERATE families are being ripped off by rogue firms who promise to WIPE OUT their debts - then sting them for MORE cash.

The scandal is growing so fast in credit-crunch Britain that already this year an astonishing SIXTY-ONE dodgy companies have been BANNED by government watchdogs.
Claims management firms offer to help people take legal action over financial problems. Many are honest, but an increasing number are preying on the poor by saying they can exploit a legal loophole to clear CREDIT CARD debts or MORTGAGES.
Experts warn that in most cases people cannot wriggle out of their debts - and will end up WORSE OFF because the management fees are non-refundable.
The claims cowboys often get families to shell out around £1,500. Many charge up to £500 just to review a case, then demand even more if they win.
Some fool customers by suggesting they are almost certain to get debts written off with spurious adverts such as: "Eighty per cent of credit agreements are unenforceable", or "We'll get your credit cards written off within six weeks!"
Probe

But Sue Edwards, of the Citizens Advice Bureau, said: "These companies seem to be offering an easy way out to struggling people but in many cases it'll just make their debt problems worse."
A clampdown this year has resulted in 70 per cent more claims firms losing their licences so far, compared to 2008.
Justice Ministry regulators say the figures reflect their success in detecting wrongdoing.
But they warn: "They also show the problem is growing. Any breach of rules is investigated and action taken."
ANYONE with a genuine complaint can get free help from the Financial Ombudsman Service or at Citizens Advice offices.
And the Ministry of Justice has set up a hotline to report dodgy companies. You can call their investigation team anonymously on 0333 200 0110.
TELE-PHONEY



IT sounded too good to be true when a cold-caller offered to clear Denise Silverstein's £3,000 mortgage debt with a "sure-fire" legal challenge.
And it certainly was - for what the crafty claims salesman didn't know was that 62- year-old bookkeeper Denise had already paid off her debt.
The company wanted £50 up front, plus 20 per cent of any cash saved.
Luckily Denise, pictured, of north London, was not taken in. But she said: "It's a horrible scam. I'm sure they have conned other victims."

[Amethyst]

Re: Tuttsi's - CMC by the News of the world

pmsl @ TELE-PHONEY (who thinks these up)

you look gorgeous tutts xxx thank you :kiss:

[pt2537]

Re: Tuttsi's - CMC by the News of the world

ive gotta say that , articles like this from the NoW really do not paint a full picture as there are many reputable CMCs out there who do a fantastic job for people.

the firm i work for takes referrals from such companies and we have an excellent success rate with claims against all of the lenders , including mortgage write offs and restitutionary claims and just to add, they offer a full refund if the claim cannot be done, todate they have refunded over £2000000

the problem is t he misinformation thats spouted, such as 80% of all agreements are unenforceable or we can write off in 6 weeks

the facts are that , there is no magic remedy , if the agreement is wrong, it can be challenged but if its not then it cant "Simples"

but the way the press report its like you will never win so dont bother

unbelieveable really, it would be better if they reported on the disgraceful lending practices etc but hey ho

[TUTTSI]

Re: Tuttsi's - CMC by the News of the world

Well the NOTW only did a shadow piece of the BBC1 blog from 2/3 weeks ago and added in a few of their choice words. I never actually had an interview, just the photo shoot.

Ministry warns on debt write-offs


By Brian Milligan
Business reporter, BBC News


Mr Sharrock says he paid a fee but received no service

The Ministry of Justice has warned consumers about the dangers of trying to get debts written off.
They say hundreds of claims management companies are charging large up-front fees, and making misleading claims about the chances of success.
Steve Sharrock, an oil engineer from Manchester, received a phone call from one such company, out of the blue.
They told him there was a 99.9% chance that they could get his credit card debts written off entirely.
This was because the credit card companies may have made mistakes in the paperwork which would breach the Consumer Credit Act.
'Con'
But after paying an upfront fee of £275, Mr Sharrock never heard from the company again.
"It's just a scam," he told the BBC.
If there is a genuine issue about debt, the right thing is to talk to your lender first, not to find some other way of wiping your debt


Kevin Rousell, Ministry of Justice

"They're obviously only concerned about getting money off you as quickly as they can. It's a con."
The company that approached Mr Sharrock wasn't licensed by the Ministry of Justice.
But even amongst more legitimate claims companies, consumer groups say the assertions they make in their adverts are often misleading.
Typically one company claims on its website that "80% of all credit agreements may be unenforceable".
In other words, the chances of getting your debts written off are high.
'Talk to lender'
But the Citizens Advice Bureau believes such figures are completely unrealistic.
Sue Edwards, the CAB's head of consumer policy, says the chances of getting any debts written off in this way are "probably quite slim."
The Ministry of Justice has already issued two warnings about such claims. But with new companies springing up every week, the ministry is struggling to keep up with them.
Kevin Rousell from the ministry suggests consumers should never pay any money up front, and they should find other ways of getting rid of debt
"If there is a genuine issue about debt, the right thing is to talk to your lender first, not to find some other way of wiping your debt," he said.
The Ministry now has a team of 34 enforcement officers in the Midlands, including five new recruits. Their job is to crack down on misleading claims, and, if necessary, remove operating licences.
'Angry'
But it isn't only people with credit card debt who are being targeted by the claims companies.
Denise Silverstein, from north London, was surprised to receive a phone call in April, from a company offering to wipe her mortgage debt of £3,000. In fact she had paid off the mortgage some time ago.
She was asked to pay £50 up front, but "found out at a later stage that they would take another 20%".
She was also upset that she and her husband had been cold-called, on an ex-directory number.
"I feel very angry," she added.
A judge at Chester Crown Court has estimated that as many as 100,000 people may now be trying to get their debts written off via the courts. So even if some of them are eventually successful, it will take a long time for their cases to be proven.

[enaid]

Re: Tuttsi's - CMC by the News of the world

[quote=pt2537;118903]ive gotta say that , articles like this from the NoW really do not paint a full picture as there are many reputable CMCs out there who do a fantastic job for people.


I am quite sure that most people on here and elsewhere would agree with you entirely on that pt.
The trouble is that many bad ones have jumped on the band wagon and as it seems the people who should be monitoring and regulating these companies are failing, so then it is up to the consumer to once again bring this to their attention.
IMHO it is another poor show from the people who are supposed to be making sure the consumers are being treated fairly.
How complicated can it be for them to have a look at these firms websites and see what they are offering and how its's wrong?
Or even to start like a mystery shopper scheme phoning them and asking what they are offering.
Just my thoughts on the matter and yes it sad that the good will take the flack for the bad over something like this, but it should never get this far.
Until the 'Authorities' wake up and smell the coffee then there is no other way round it imo.

[pt2537]

Re: Tuttsi's - CMC by the News of the world

just one small point that seems to escape most members of the press,


a little old lady called penelope wilson took First County Trust all the way to the House of Lords and that case established that credit agreements can be unenforceable

there was also the Dimond and lovell litigation, McGinn and Grangewood, Watchtower and Payne, London North and Meadows, Spurway and Central Trust, Ocwen and hughes, Freel and I group, the list goes on .....

so its not something new thats suddenly popped up, its been around for a while so i dont see why there are so many people saying " it cant be done" as its clear that it can be the case that credit agreements can be written off


still, i do hate it when consumers get ripped off by the few unscrupulous CMCS as it makes it bad for the rest of us

[Curlyben]

Re: Tuttsi's - CMC by the News of the world

I believe that I made this point about CMC's back in April

Claims Management Companies - Are they ALL bad - Legal Beagles

[TANZARELLI]

Re: Tuttsi's - CMC by the News of the world

I believe that I made this point about CMC's back in April

Claims Management Companies - Are they ALL bad - Legal Beagles

And a very well made point it was too :beagle:

[Amethyst]

Re: Tuttsi's - CMC by the News of the world

So good CMCs then - can we have names to look into (in VIP would be best or PM me). Also the decent solicitors who will check credit agreements properly and for free and help you with a case if it has merit.

So NOT cold callers, not data farmers - proper decent CMCs who do the work, keep in contact, don't charge daft amounts of money and are honest about peoples chances of getting money back / wiping debt etc.

Lets at least be able to guide people a bit (without recommending - I cant recommend any one to anything with out personal experience and evidance - and the site won't) but I WANT to find the decent CMCs out there. Everyone keeps saying they exist - so where ? ( I have a few small claims hanging about I can use to test them out with actually)