classic Subaru Si

As above really, I'm in the s**t with money at the minute and have been given a number for this company. Basically it's a registered charity that helps people with debt. You pay them X ammount each moth, and they in turn pay your creditors. All the interest gets frozen on your loan/credit cards until the balance has cleared. Now, i'm very wary of sending payment to a company I don't know an awful lot about, and was wondering if anyone has had to use this company before??

Paul3446

I'm always suspicious that there must be a catch with these companies, never heard of this one I'm afraid though.

classic Subaru Si

I feel the same, especially when they don't charge you for the service! They say it's a registered charity, but how do I check these people out so that I know they are legit??

Paul3446

They should have a registered charity number if that's the case.

Try Citizens Advice, they might know.

KiwiGTI

Have a look at this site

Free Not-For-Profit UK IVA Advice, Individual Voluntary Arrangements - IVA UK, Simple IVA - SIVA UK, UK Bankruptcy Advice, Bankruptcy Assistance

They have a good forum section too.

Free Bankruptcy UK, IVA and Simple IVA, Debt Advice Forum

Whatever you do don't go and get some stupid IVA where you are penalised for the next 5 years - you are better off going bankrupt and getting rid of all your debts completely (unless you own a house)

As for CCCS, I would steer clear, it is trying to masquerade as a genuine charity but is clearly getting some sort of benefit. Citizens Advice is a good start.

Chris L

A click flick around on Google and their site suggests that they are funded by the credit industry and our part of the Foundation for Credit Counselling, which is a registered charity (registered charity 1016630). If you have any doubts, speak to the Citizens Advice bureau - they will have almost certainly heard of and used them if they are genuine.

classic Subaru Si

Yep, I own a flat!! I think I'll ring citizens advice, see if they know this company!!

classic Subaru Si

Great, cheers mate!!

Devildog

They are genuine, and one of the better advice agencies around

Shark Man

If you can't meet the payment terms of your loan/credit cards...tell the loan/credit card company, it is possible for them to freeze interest.

Involves ALOT of telephone calls though.

Luminous

iTrader: (3)

I am no expert in these matters, but I am aware of one possible scam/issue with this type of arrangement.

Basically these companies negotiate on your behalf with your creditors. They tell them that they will be paying off your bill on our behalf. They also "negotiate" the freezing of interest, and the manageable repayment terms.

Where the issue has arisen in the past is where these companies don't actually come to an agreement with your creditor. Some of them in the past have said to your creditor "we are going to pay you 80p in the pound and interest is now frozen". When the creditor has not agreed to this they keep on adding interest to your loan.

You sit there at home thinking all is great and your debt is going down, but in reality its going up even more than before. You don't realise this as the consolidation firm is not telling you, and your creditors are not writing to you directly as you told them to talk to the consolidation firm!

It was a scam that was around a few years ago, as some consolidation firms appeared to be better than others. They claimed they could reduce your debts more than their competitors so that you would use them. Then in years to come people found out that they were in one hell of a mess.

There was a big thing about this scam, no idea what measures are in place to stop this from happening.

However, there is one thing you can do to make sure. You write to your creditors after your consolidation firm tells you they have tings sorted. You get your creditors to agree in writing that they are happy to proceed and in agreement with your consolidation firms figures.

Devildog

To the OP.

If a debt consolidiation/advisory entity requires you to pay a fee - stay clear.

As Chris has said above, CCCS is funded by the credit industry for just such issues.

Additionally, there is nothing wrong with an IVA if done correctly, especially if you own property. Yes, you may well be tied in for 5 years, but if accepted by the creditors (and most are) you will be released from your remaining debt just as you would in a bankruptcy.

Of course, you may not be able to meet the criteria required by a reputable insolvency practice in which case an informal arrangement or a bankruptcy may be your only options.

Please bear in mind that creditors are not legally bound by anything other than an approved IVA or a bankruptcy. Just becasue they agree to a payment plan now, doesn't necessarily mean the will still be happy with it a year down the line