Author Topic: Stop the rougue companies?  (Read 936 times)

shocksoc335

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Stop the rougue companies?
« on: Apr 04, 2011, 09:35:20 AM »
A “Stop the Debt Rogues” campaign launched today in the Daily Mirror. The Mirror’s campaign calls for a clamp down on the widespread bad practice by fee-charging debt management companies – with an estimated 400 firms operating in the UK, many are ripping off consumers and not paying their creditors.
The debt management sector needs to be regulated as a matter of urgency to protect vulnerable consumers suffering at the hands of these unscrupulous providers. The debt management industry is currently regulated by the Office of Fair Trading (OFT) – but when the OFT published its Debt Management Guidance Compliance Review, assessing a large number of firms in the debt management market, it identified a litany of malpractice. It said that 129 firms were non-compliant with Debt Management Guidance


shocksoc335
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Re: Stop the rougue companies?
« Reply #1 on: Apr 04, 2011, 10:42:41 AM »
Morning Shocksoc335,
 
I also had noticed that the Daily Mirror was about to start this and I await to see if other papers run with something similiar.
 
It does go to show when consumers in the UK are really struggling to make ends meet and they go to these companies for help only to get ripped off. It happened last month with DCM Money Solutions went into Administration and a lot of their creditors were not getting paid leaving the worst off at a financial meltdown.
 
Lets all hope all of these companies do not get their CCL renewed and OFT takes more action unless another Regulatory body can be brought in to clamp down on it all ASAP.
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shocksoc335

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Re: Stop the rougue companies?
« Reply #2 on: Apr 04, 2011, 06:51:45 PM »
I had heard about DCM too already talking with clients who are affected not much they can do really except apply to the Receiver for the funds they have paid into the DMP some of them are at the very end of their DMP term  - this means they will have to start from scratch as the liability remains theirs until the debt is paid.
 
These companies need regulating.
 
Kind Regards
Shocksoc335
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James Falla

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Re: Stop the rougue companies?
« Reply #3 on: Apr 05, 2011, 03:15:17 PM »
There is no doubt that the OFT has been doing a good job tackling some of the rogue debt management companies who are undoubtedly out there. I for one welcome this action.
 
In terms of the DCM situation, the majority of money paid to them by clients has ultimately been paid on to creditors so there is no need to worry old DCM clients unnecessarily. However as you say Shocksoc many of them will have to start new plans to continue paying their creditors. I have also suggested that they should take the opportunity to review their circumstances and check to see if a DMP is still the right option for them.
 
With recent reductions in the amounts creditors are prepared to accept in IVAs, it may well be that this is now a more appropriate solution for them. Alternatively if they have no assets and they are making no progress because their creditors continue to add interest and charges, perhaps a debt relief order or bankruptcy would be a better way to go. If you are on a DMP, what ever your circumstances tt is always worth reviewing your situation every year or so.
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