Debt management firms selling 'unsuitable' plans, says FCA

[meellis]

Re: Debt management firms selling 'unsuitable' plans, says FCA

Before bankruptcy I went for debt management and to be honest I couldn't see an incentive to do it. I would have paid £1400 over 5 years, because of my home the debt wouldn't have been reduced by much and after 4 years of a 5 year plan they would still have looked into selling my home to pay off the original debt. At least I was given this info before making the choice. Even though I wouldn't want to see people being able to run up debts and walk away from them I would like to see it easier and more cost effective for people to live with their debt burden without resorting to them walking away in an voluntary arrangement or bankruptcy. I know people are being punished with the IVA or bankruptcy but the creditors are only piling on their losses to the others who are paying either by increasing prices or reducing benefits or both.

[enaid]

Re: Debt management firms selling 'unsuitable' plans, says FCA

The incentive could be taken as a % of the amount removed.

i.e a £1000 total debt which includes £100 of spurious charges would be reduced to £900. Of that £100 saved by the creditor the DMP could quite reasonably take say 10-30% in fees, the debtor is in front by £70-£90 and the DMP operator makes £10-£30 and gains additional "customers" through being known to help in these situations.

I think I should start a DMP Company, I'd be grrrrrrrrrrreat lol.

'appen you would, don't let Ame get involved though she would let em all off lol xx


I know when the lads statement came (he was with CCCS) it was all daft amounts deducted from the debt and tbh the amount never seemed to move at all, that in itself is a big let down imo.
Perhaps if you did pay over 12 month and kept to it maybe then they could knock a bit off too as an incentive. They surely have to do something to help folks as it is most definitely 50/50 as to who's fault the debt is in most genuine cases.

[enaid]

Re: Debt management firms selling 'unsuitable' plans, says FCA

Just a foot note, if you have drunk a lot of beer and saved 1p per pint and won on the bingo then you should be able to pay a little extra some months :tongue2:

[meellis]

Re: Debt management firms selling 'unsuitable' plans, says FCA

Good old government rhetoric, all debtors are drunken gamblers as opposed to normal people who are supporting them all and are debt free. LOL