DCM Money Solutions - In administration

[Latch Key Kid]

Re: DCM Money Solutions - In administration

Well, it would be strange if we did not robustly promote IVAs - given that that is where we make our money. However, we find there is no need to pressure anyone into a solution - because there are always going to be enough people who genuinely need what we provide - it's just vital for our long term reputation in the market that we always do our utmost to give appropriate advice - it's, in my opinion, one of the reasons ClearDebt has grown more slowly than some competitors.



Well, first, we don't - currently - get many people who are suitable for DROs - the criteria are just too restrictive. Come April, this may change. I think it's a damn shame the last Government decided to enable the DRO (other than that it undoubtedly helps some who can't afford to go bankrupt) - the Enforcement Restriction Order would have been far more helpful and would have encouraged people to deal with money worries at the time they first occur - rather than waiting.

Personally, I wish we had something like Scotland's Debt Arrangement Scheme (DAS) in England and Wales.

OK - back on topic. In all our calls we advise people that there is free advice available (we have to). Where bankruptcy or DRO is advised we specifically signpost sources of help or explain to an individual how they can begin the process themselves. Occasionally, with people who want to choose bankruptcy and who either have some resources, have complex financial situations (some self-employed people for example) and/or feel the process is beyond them we will refer them to a specialist who assists with the form filling for a fee: this is never more than a handful a month.



This, and your next paragraph - quoted below, raise an interesting point. It's my view that those who can afford debt advice and the administration/execution of a debt resolution scheme should pay, rather than the taxpayer. It's also my view that the creditors (who also benefit from effective debt resolution) should pay too.

ClearDebt set itself out to be the lowest cost IVA provider in the marketplace and we were probably responsible for the IVA gravy train hitting the buffers a few years ago. Since the IVA protocol came in we've always charged fees that are protocol compliant - but we still deal with unsecured debts down to £10,000 in an IVA and sometimes lower - so our IVA book radically overlaps many competitors debt management book.

With people who really cannot afford to pay we do, of course, reiterate the availability of free advice agencies.

People who don't want to follow a formal debt remedy, in my view, fall into two categories - those who are struggling less than they think and who can be advised that belt-tightening will suffice and those who genuinely need help but can't pull their head out of... ... the sand. In the latter case, we signpost all the advice there is, but some of my colleagues in advice think that the chance of the caller doing anything is remarkably small.



I don't think we are untypical in the industry and I am told that, of the calls we receive, roughly 50% are people we can help and that people who are worried but solvent represent just over half the remainder and people who we cannot offer our service to (but to whom we will still give initial advice) represent just under half the remainder.


Below is an article setting out Money Advice trust's position on the non fee-charging sectors's capacity issues.

Debt charities overwhelmed by recession - Times Online

It's older than I remember - but I don't think anything material has changed. It continues to be stated in a variety of places and was raised when CA lost face-to-face debt advice funding (and then - rapidly - had it temporarily reinstated) a short while ago.

Publically, they've stressed lack of capacity less - this is from December 2010:

"Joanna Elson OBE, Chief Executive of the Money Advice Trust, which commissioned the research, said: “The last few years have required debt advice charities like ours to bring about a step change in our capacity, not just to help people out of their immediate debt problems, but also to help them back into financial health with longer term planning.

“Should unemployment rise next year to the extent that independent forecasters predict, together with potential interest rate rises, it seems we will face further challenges in meeting new demand for help. However, the research has also unearthed a challenge that exists already — namely that only one in six people with a debt problem seeks advice. It is vital that anyone struggling with debts is able to make informed decisions and understand all of their options; the best way to do that is to seek advice from independent experts."

I think you need to read between the lines here: I am convinced there are still real capacity problems.



Thanks for the above - delighted to discuss other issues. And thanks to the forum for listening. I'm afraid I sort of expected knee-jerk hostility and was pleasantly surprised to get robust questioning. We'll take pains to respond whenever we can - but it may not always be immediately.

Hi rednelly

This is a good and I suspect well thought out response, I have to give you that.

Im pretty impressed to be honest (try not to break into a wry smile or go a little faint at this comment) and would say that in my opinion you have recovered well from the initial 'jumping in' if you like.

However (and I know this will come as no surprise to you) there are some issues I wish to address and maybe add a little balance so to speak.

I am going to have another look through what in my opinion has developed into a professional and fascinating thread first and hope to respond later with the same respect, manner and tone

Maybe we can all learn something.

[Nibbler]

Re: DCM Money Solutions - In administration

A researcher for the BBC has just posted this on the MSE thread.

Hi there, I've just spotted this thread, and seen you're looking to raise the issue with the media.

I'm a journalist at the BBC in Nottingham and wonder whether one of you may be able to contact me.

My direct line in the office is 0115 9021 911. Or you can contact me on verity.cowley@bbc.co.uk.

All the best, Verity

[rednelly]

Re: DCM Money Solutions - In administration

ClearDebt has now sorted the information we got from the administrators and have put Apex and DCM Money Solutions client data on our system. It's available for anyone who emails or calls (though we'll have to take steps to establish your identity before parting with the information).

Details can be found here.

Contact details are still the same as published on our original blog on the subject - which is where we'd encourage people to leave comments for us.

All the best,

rednelly

[Latch Key Kid]

Re: DCM Money Solutions - In administration

ClearDebt has now sorted the information we got from the administrators and have put Apex and DCM Money Solutions client data on our system. It's available for anyone who emails or calls (though we'll have to take steps to establish your identity before parting with the information).

Details can be found here.

Contact details are still the same as published on our original blog on the subject - which is where we'd encourage people to leave comments for us.

All the best,

rednelly

Hi Red

Following on from my previous post -

Taking all things into account too date and that I would always suggest people in debt should seek advice that is genuinely free if possible.

As far as I am concerned we have both had our say on this and for the sake of repeating and going off topic I won't be adding anything else, people can make their own minds up.

The main thing is all the DCM clients and lets hope things eventually work out for them and those that may have lost money can in some way seek redress (I won't hold my breath on the redress though)

As far as the debate between the fee chargers and the free sector is concerned (including training) that can be for another day, another thread, another forum even.

It has been interesting talking with you again red.

Im quite sure you know what I mean

[rednelly]

Re: DCM Money Solutions - In administration

Further news for Apex DCM ex-clients regarding refunds of monies paid in after March 2 and guidelines for contact with the administrators.

[rednelly]

Re: DCM Money Solutions - In administration

Situation regarding client funds held by Apex DCM prior to administration.

[Latch Key Kid]

Re: DCM Money Solutions - In administration

Hi

Recent Mirror Article -

http://blogs.mirror.co.uk/investigat...nd-the-mi.html

[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.

[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?

[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

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?

[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'

[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

[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

Rednelly,

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