DCM Money Solutions - In administration

[Nibbler]

Re: DCM Money Solutions - In administration

BBC News - Debt management firms who fail to pass on payments to creditors

[Nibbler]

Re: DCM Money Solutions - In administration

Initial creditors meeting (for what it's worth).

Not really very much to note as yet.

Email:

========================================
Message Received: May 20 2011, 11:56 AM
From: "Apex DCM Response"
To: "Apex DCM Response"
Cc:
Subject: Apex Debt Counselling & Management Limited - in Administration

Dear Sir/Madam

You have previously agreed to receive correspondence by e-mail in
connection with the above named company.

Accordingly, please find attached Form 2.23B giving formal notice of the
result of the meeting of creditors which was held by correspondence on
11 May 2011.

This letter is a formality, the sole purpose of which is to advise
creditors of the outcome of the creditors meeting. No further action is
required by creditors at this stage.

A further report detailing the progress of the Administration will be
sent to creditors in due course.

Yours faithfully

on behalf of Gordon Johnston and Alan D Fallows joint administrators of
Apex Debt Counselling & Management Limited

t: 023 8023 4222
f: 023 8023 4888

e:apexdcmresponse@hjsrecovery.co.uk

And the main points.

[rednelly]

Re: DCM Money Solutions - In administration

Rednelly,

Do you know if regulation of the DMC Sector will come under the new CPMA?

I do not think the CPMA is dead, I was under the impression the CPMA is an ofshoot of the FCA in that the FCA will handle the business regulation side and the CPMA will handle the consumer side.

You could be right - I was basing my comments on:

a) - someone at the OFT telling me on Tuesday just gone that CPMA had been renamed and that, within the article linked above, it says:-

"In an interview in the Financial Times today, Treasury financial secretary Mark Hoban (pictured) says the CPMA, to be renamed the Financial Conduct Authority, will be able to ban products or limit their distribution for up to 12 months."

and:-

"Earlier this month, the outgoing head of Hong Kong’s financial regulator Martin Wheatley was appointed chief executive of the CPMA, now the FCA."

[pompeyfaith]

Re: DCM Money Solutions - In administration

I do not think the CPMA is dead, I was under the impression the CPMA is an ofshoot of the FCA in that the FCA will handle the business regulation side and the CPMA will handle the consumer side.

[rednelly]

Re: DCM Money Solutions - In administration

Rednelly,

Do you know if regulation of the DMC Sector will come under the new CPMA?

Currently, it is planned that it should - and when it does, it seems likely (lots of consultations, etc, going on) that we will come under a regimen that is far more like the FSA than the OFT - most of those who are trying to establish a trusted fee-charging debt resolution industry would welcome this.

Incidentally, the CPMA is dead - long live the Financial Conduct Authority - FCA:

CPMA will have power to ban products | News | Money Marketing

That article shows that it's likely to have considerable teeth - in theory at least.

[rednelly]

Re: DCM Money Solutions - In administration

Stumbled upon this thread after searching for Debt Dr today whom I used to have dealings with many years ago... One solution could be that ClearDebt could honour the contracts given to the DCM Clients couldn't they? Afterall, they have purchased the book... In a deal done before the collapse? Did they sign a waiver that allowed them to squeeze any profit they could out of DCM clients by selling IVAs to all those they could sell to and not have to bother helping the rest? They have already stated that they want to be percieved as saviours of the DCM clients by offering them 'free' debt plans? So why not really be the saviours and honour their original contracts? Then, if justice is bought against the directors, great, but Im sure DCM clients would put being debt-free above holding grudges? Im sure Cleardebt could afford it... Arent they a Footsie listed company?

I am a ClearDebt employee. There is a lot wrong in the above. First, we did not purchase the book. We purchased the clients details only and we did this after the collapse - not before.

And, the amount that appears to be missing seems to be considerably more than our annual profit. But, even if we could afford a bail out, why would it be fair for us to do so? We have had absolutely nothing to do with this failure.

ClearDebt has absolutely nothing to do with the events that have led to DCM clients being in the position they are now in. We are doing our best to help sort out their futures. Those who choose our free debt management plan will, in perpetuity, have every penny paid to their creditors. And, yes, we are providing IVAs to those who will save by doing so - and we are charging industry standard (protocol compliant) fees for doing so. I don't believe we are adding to the misery DCM's failure has caused and to make us in any way responsible for it is ludicrous.

[Garlok]

Re: DCM Money Solutions - In administration

That would be interesting PF indeed.

I am horrified at the reports of the levels of the costs some folks have had to pay out to these companies. In our own history in this we were having a lot of cold calling and I aplied the old adage that what seems too good to be tue, usually is or words to that effect. However when I was told to get help by the doc I sought proper legal represenation via a specialist solicitor and searched until i found one. I can give you the techniques I used but won't bore you until asked.

However, we did find a specialist litigation solicitor who took our four cases and let me tell you that the costs have been no where near some of the figures reported here. In fact the fees were less than one months payments on the cards in question and we have paid nothing since. There were disbursements of under £80 for each account but we would have paid that anyway in the statutory outlays.

It was interesting that during the very first discussions we had about our cases, they were adamant that we had nothing to do with claims management companies, IVAs, DROs Tomlin orders and the like. They started work straight away and gave us time to get their fees together. Now we a statement in writing from the managing partner of the large practice that we will now be defended on a whatever it takes basis at no further cost to ourselves.

Let me assure you that is a very comforting position to be in and has not cost the earth and certainly nowhere near the fees quoted by many on here.

regards
Garlok

[pompeyfaith]

Re: DCM Money Solutions - In administration

Rednelly,

Do you know if regulation of the DMC Sector will come under the new CPMA?

[NeutralObserver]

Re: DCM Money Solutions - In administration

Stumbled upon this thread after searching for Debt Dr today whom I used to have dealings with many years ago... One solution could be that ClearDebt could honour the contracts given to the DCM Clients couldn't they? Afterall, they have purchased the book... In a deal done before the collapse? Did they sign a waiver that allowed them to squeeze any profit they could out of DCM clients by selling IVAs to all those they could sell to and not have to bother helping the rest? They have already stated that they want to be percieved as saviours of the DCM clients by offering them 'free' debt plans? So why not really be the saviours and honour their original contracts? Then, if justice is bought against the directors, great, but Im sure DCM clients would put being debt-free above holding grudges? Im sure Cleardebt could afford it... Arent they a Footsie listed company?

[pompeyfaith]

Re: DCM Money Solutions - In administration

Furthermore the FSA have a conferance on Financial crime in June, but there is no mention of the DMC Sector now that is strange as I'm sure the FSA are upto speed?

http://www.fsa.gov.uk/pages/Doing/Ev...al_crime.shtml

UPDATE

Forget this got the answer from rednelly OTR

Thank you

[Latch Key Kid]

Re: DCM Money Solutions - In administration

Advice please.

I just found this piece on DebtDR ceasing trading on a publication called IFA online. It raises the possibility that IFAs that advised clients to open plans with DebtDr could be liable for client losses.

This raises the intriguing possibility that the 15 or so individuals who acted as franchisees to Apex / DCM might also be similarly liable. Views please?

Hi red

Another shocker -

Just had a read through this link from your post and found the highlighted paragraph of particular interest.

http://www.ifaonline.co.uk/ifaonline...btdr-referrals

Some advisers and mortgage brokers, who had seen work dry up since the property crash, had opened up a side business in referring bankruptcy cases to the Somerset-based service in exchange for commission.

What do IFAs actually really know about genuine debt advice?

Do they refer on the basis of who will give the best value advice or is it a case of the commission thing?

Mirror Article on this -

http://blogs.mirror.co.uk/investigat...e-patient.html

Interesting all round situation.

To be honest the more I look at this the worse it seems to get.

Are there any more on the horizon? or should that be 'under the radar'

[rednelly]

Re: DCM Money Solutions - In administration

I would imagine it would depend whether these clients were advised by an IFA or not, quite a few I expect were not and went via Apex DCM with a cold call or other means direct.

In other words non-advised.

Well - I'm inclined to think you're right - not least because IFAs have Prof. Indemnity, that makes them worth sueing.

BUT - a very high proportion of Apex DCM clients got face-to-face advice from franchisees (there appear to have been 15 different organisations/individuals with CCLs with DCM on them as a trading name) - I suspect they don't have the same statutory responsibilities as IFAs - and probably don't have funds anyway: but I wondered if it was worth a go?

[pompeyfaith]

Re: DCM Money Solutions - In administration

I would imagine it would depend whether these clients were advised by an IFA or not, quite a few I expect were not and went via Apex DCM with a cold call or other means direct.

In other words non-advised.

[rednelly]

Re: DCM Money Solutions - In administration

Advice please.

I just found this piece on DebtDR ceasing trading on a publication called IFA online. It raises the possibility that IFAs that advised clients to open plans with DebtDr could be liable for client losses.

This raises the intriguing possibility that the 15 or so individuals who acted as franchisees to Apex / DCM might also be similarly liable. Views please?

[rednelly]

Re: DCM Money Solutions - In administration

Bad news from the administrators, I'm afraid.

And more details from our blog relating to the Daily Mirror article (link above).

Edited to add: This thread now contains advice on making a claim to Apex / DCM administrators.