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I've been put onto them to help pay my creditors. Lady on the phone said a fee was payable for them to arrange everything, fair enough.
I asked outright if any more of my money would be going to them - she said no. When I said "So it's a one off payment, then you're not involved after the arranging? I've looked at things like this before and I'd have ended up paying ridiculous amounts of interest to the company" she said yes, one off payment and all my money would go to the debts. (£50 between two creditors)
This is from their website :
5. How we will be paid.
5.1 Unless we agree otherwise with you due to the amount of creditors included on the Debt Management Plan. We will take from each monthly payment under the Debt Management Plan a gross fee equal to 17.625% of the periodic payment under the Debt Management Programme. However, this is subject to a minimum fee of £35.25 per month.
5.2 Because most of our work for you will be done at the start of the period, we will retain as a fee the first monthly payment to cover the cost of implementing your Debt Management Plan.
5.3 We will retain as a fee the second monthly payment as a creditor set up fee, minus £1 for each creditor which is to be paid to them as a ‘token' payment. This fee is non refundable once the creditors token payments of £1 each have been dispersed.
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So would I, in fact, be paying them x amount a month until said time that I pay off the debt, completly contrary to what the woman on the phone told me? She's meant to be phoning me tommorow to take my arrangement fee.
I asked outright if any more of my money would be going to them - she said no. When I said "So it's a one off payment, then you're not involved after the arranging? I've looked at things like this before and I'd have ended up paying ridiculous amounts of interest to the company" she said yes, one off payment and all my money would go to the debts. (£50 between two creditors)
This is from their website :
5. How we will be paid.
5.1 Unless we agree otherwise with you due to the amount of creditors included on the Debt Management Plan. We will take from each monthly payment under the Debt Management Plan a gross fee equal to 17.625% of the periodic payment under the Debt Management Programme. However, this is subject to a minimum fee of £35.25 per month.
5.2 Because most of our work for you will be done at the start of the period, we will retain as a fee the first monthly payment to cover the cost of implementing your Debt Management Plan.
5.3 We will retain as a fee the second monthly payment as a creditor set up fee, minus £1 for each creditor which is to be paid to them as a ‘token' payment. This fee is non refundable once the creditors token payments of £1 each have been dispersed.
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So would I, in fact, be paying them x amount a month until said time that I pay off the debt, completly contrary to what the woman on the phone told me? She's meant to be phoning me tommorow to take my arrangement fee.
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