Compass debt company

[taff_dragoness]

Can you help have just found out my debt management company has gone under where do i go they havent finished the job and there is money in a account that is mine. What do i do so scared. thought i was getting my live back and now its gone to pot

[Nibbler]

Re: Compass debt company

Welcome.

1st please read this link ---> http://lbcompare.co.uk/compass-debt-...dministration/

and

--> what to do if your debt management company closes.

Can't pretend the news is likely to be great for the funds you are owed, but there is a way through this.

[Debt Camel]

Re: Compass debt company

Hi, sorry you are having to go through this hassle. And Nibbler says, you are unlikely to get the money in your account back.

You may be worried that you are suddenly going to get hassled by creditors again - I think this is very unlikely if you start setting up another DMP over the next few weeks. Compass isn't the only DMP firm in trouble - another DMP firm PDHL was closed down by the regulator yesterday - and more are likely to follow over the next few months. Creditors will just be very happy when you get yourself settled with another DMP.

You have three options for how to set up a new DMP:

1) do it yourself. This is probably easier than you think! There is some free software here https://nedcab.cabmoney.org.uk/dmp.asp from Citizens Advice that will calculate how much to offer each creditor and generate all the letters to creditors for you. This includes versions of the letters for when you are telling the creditor that you previously had a DMP with someone else.

2) go to a free DMP firm StepChange (http://www.stepchange.org/Howwecanhe...ementplan.aspx) runs DMPs that are free-to-client so all your money goes to your creditors each month. There are no downsides to using a "free" firm - they are exactly the same as a "fee paying" one, see http://debtcamel.co.uk/choosing-a-de...ement-company/ for more details

3) choose another commercial DMP company I can't think why you would want to do this, but it is an option!

One of the big advantages of talking to StepChange now is that you can have a review about whether a DMP is the best debt solution for you. It may well be, but think of this as having a health check up if you change GPS - re-assuring to have it done Compass were a one trick pony so they wouldn't have given you advice about whether you have any possible alternatives - StepChange can talk about all the debt solutions.

[Amethyst]

Re: Compass debt company

Hi Taff, I've just had an email from the liquidators of Compass which I'll add to the post along with the form for creditors, you need to have a read of that and follow the instructions to make sure your claim is in.

http://lbcompare.co.uk/compass-debt-...dministration/

Did you have money paid into a 'savings pot' with Compass as well as the DMP payments going to your creditors ?



@Debt Camel; would you mind if I add your post to that article ? This bit?

1) do it yourself. This is probably easier than you think! There is some free software here https://nedcab.cabmoney.org.uk/dmp.asp from Citizens Advice that will calculate how much to offer each creditor and generate all the letters to creditors for you. This includes versions of the letters for when you are telling the creditor that you previously had a DMP with someone else.

2) go to a free DMP firm StepChange (http://www.stepchange.org/Howwecanhe...ementplan.aspx) runs DMPs that are free-to-client so all your money goes to your creditors each month. There are no downsides to using a "free" firm - they are exactly the same as a "fee paying" one, see http://debtcamel.co.uk/choosing-a-de...ement-company/ for more details

3) choose another commercial DMP company I can't think why you would want to do this, but it is an option!

[taff_dragoness]

Re: Compass debt company

Thank you

[Openlaw15]

Re: Compass debt company

Can you help have just found out my debt management company has gone under where do i go they havent finished the job and there is money in a account that is mine. What do i do so scared. thought i was getting my live back and now its gone to pot

Since the company has gone into voluntary liquidation and it has hold of your money, you are now a creditor. How much money is in that account? Contact the company and request the administrator's details. This is bit of a long shot but it may apply in your situation. The company may have a retention of title clauses in its contract with you to cover against company bankruptcy. A retention of title simply means that ownership of goods or money in bank accounts cannot be claimed by administrator in bankruptcy. If this is the case you may be able to get your money back. This is different to be being owed a debt where the company no longer has any liquid, ie finances but has other non money assets. Have a look at your contract thoroughly to see if there is a retention of title clause. If this fails, the administrator in bankruptcy is also a trustee for the creditors which includes you and he can trace the money in bank account if it has not been mixed with other funds. Nevertheless, you must put your claim in now before the company goes into administration formally.

[Amethyst]

Re: Compass debt company

The details are all on that post I linked to @OpenLaw -> http://lbcompare.co.uk/compass-debt-...dministration/


The money in the 'savings pots' SHOULD have been held in a separate client account - if it was a solicitors firm it would have been - unfortunately as only regulated under an interim consumer credit licence they had no requirement to do so. It is likely the FCA will be cancelling their license.

The agreements are posted on another thread ( well the terms and conditions) http://legalbeagles.info/forums/show...hlight=compass

[Debt Camel]

Re: Compass debt company

[MENTION=6]Amethyst[/MENTION]

@Debt Camel; would you mind if I add your post to that article ? This bit?

of course

[Amethyst]

Re: Compass debt company

Thanks you xx

[Openlaw15]

Re: Compass debt company

Can you help have just found out my debt management company has gone under where do i go they havent finished the job and there is money in a account that is mine. What do i do so scared. thought i was getting my live back and now its gone to pot

"Compass Debt Counsellors - Terms of Business .......
......

• How we hold your money

.......Payments made by you which will be paid to your creditors are held in a client trust account together with money we hold for our other clients.

• We will only take our management fee when we make payments to your creditors.
• Any money held for you which is not due to creditors or to us under this agreement, may be paid to you or to your order through a UK bank account, in your name or (where you hold a joint account) in your name and the name of the other person.
• If there is any money which we hold for you and we are for any reason unable to pay it to you in line with these terms, we will write to you to ask for your instructions for payment. "

It looks like the bank account is protected from the administrators as they're held on an express trust. Therefore the Company was a trustee for your money prior to insolvency so now the liquidator/ administrator/ insolvency practitioner acquires the trustee title to the company's trust. The problem you have though is the trust is seemingly not separate accounts so unless there is a way of identifying mixed funds it could be a problem. However, it seems more than likely each credit in the bank account will have its own unique number to identify each person who held money in these accounts.

[taff_dragoness]

Re: Compass debt company

Thanks for your advice

[Amethyst]

Re: Compass debt company

Thanks OL xx Fingers crossed... they sound like they comply with client funds regs - at least in their terms - hopefully the money has actually been kept separate

[taff_dragoness]

Re: Compass debt company

To be honest i want the money owed to me and also your fee payed back as you broke the contract

[Amethyst]

Re: Compass debt company

Have you printed off a copy of the form Taff ? http://lbcompare.co.uk/wp-content/up..._Creditors.pdf ( page 6 )

Do you have a list of your creditors ?

[Wingco]

Re: Compass debt company

Hi Taff

The same has happened to me. The address for the administrators is info@aabrs.co.uk. AABRS are the administrators. They will send you a claim form to lodge your interest in any funds held in your name. There is a meeting of clients on 21st March which once you have declared your interest you will be sent full details of. I'm going largely out of interest as I don't expect to get any money back although I will lodge my interest on the AABRS form.

I have contacted my creditors by letter. Don't talk to any of them on the phone - get everything in writing and largely use signed for post. Becasue you are no longer paying Compass' fees, you should have no problem paying each debt with the same amount and you will be better off. Alternatively, you can offer them slightly more -why would they refuse?

Doing it yourself based on the amounts Compass paid out is simple. Aidie (anther Compass client posting on here) and I both contacted Stepchange and we weren't very impressed; they are far less flexible and helpful as Compass. But they are free and many others like them.

All you have to do is write advising the creditors that you are an ex-client of Compass, then you can:
1. continue payments and give a figure at or slightly above the Compass payments.
2. Send a CCA letter (details are on this forum) which enables you to get full details of your credit agreements and balances. If they can't provide this information within 12+2 days the loan becomes unenforceable - which really only means they can't enforce full repayment in Law; you still owe the money. Apparently some creditors give up when they receive a CCA letter. I've not had any replies so far but there are still l6-8 days to run. When you send the CCA letter you need to include a £1 postal order with the words "For statutory fee use only". Send it recorded/signed for post.
Just Google the companies who hold your debts and you will find their addresses.

The secret is not to answer the phone or put it down having politely asked them to put everything in writing. You are not obliged to talk to them.

Keep a comprehensive file of your letters.

And DON't Worry. There is loads of excellent help on here and many people in the same boat.

If you have any questions, just ask on here.

Wingco