Why pay fees for a debt management plan? See how much we could save you
A fee charging debt management company is a firm that will charge you for debt advice and debt service. They usually take the first two months’ payments into your plan as upfront costs followed by 15% of your monthly payment plus VAT. The New Protocol launched in February 2013 will mean that the up front fees will be taken over six months. See Debt Management Protocol
There are some good fee charging firms operating in the debt industry and if you are happy with your firm then fine. However there are some shockers out there and we have the following guide to help you spot them, see our 7 point guide to spotting a dodgy debt advice website!
If you are thinking of starting a debt management plan or wish to transfer to a 'non' fee debt management plan and not pay fees then see how much we can save you by using the slide bars on our unique fee saving calculator above.
Basil Rankine, owner of Credit Card Killer (CCK), a trading name of Momentum Network Limited, has been jailed for four years after fraudulently claiming to be able to clear people’s debts through ‘legal loopholes’ that would remove their liability for the debt.
His wife, Amanda Rankine, was also handed a 12-month sentence, suspended for 18-months and ordered to do 200 hours of community service. Wonder if that will be offering debt advice?
The sentencing follows an investigation from the England Illegal Money Lending Team. The company (CCK) claimed to be able to buy a person’s debt for £1, with some admin fees and an expectation of 10% of the total debt to be paid upfront.
However, it is illegal for someone to buy a debt without the agreement of the lender and many of their customers found that they were still being chased for their repayments.
During the period in question, the Rankine’s received at least £1.8 million in fees from their customers.
I’ve always said that this was too good to be true. When a consumer takes out a loan or credit card then the responsibility for repayment is with the applicant. It is not legally possible to transfer this over without the agreement of the lender.
Anyone or business that says to the contrary is misleading consumers. You have been warned!
Any consumer that has already ‘sold’ their debt to this firm or any other firm operating in a similar vein is still liable for their original debts.
If you do not make the payments as agreed at the time of taking out the loan then you will have your credit file marked down for non-payments. The lender may also embark on debt collection activity, which could lead to county court judgement and even bankruptcy.
Where can I get free debt advice and debt solutions with no fees?
You can either telephone DebtWizard on 0800 197 8433 or click on the following link where you will get access to organisations that also include the debt charities.
Take me to free debt advice agencies.
Are you owed thousands of pounds in mis-sold Payment Protection Insurance (PPI)?
If so we can help you claim in two ways, either use;
our free DIY template letters, or
a firm to help you with a LOW FEE of 12% + vat
Our recommended firm will handle all the claim on a "No Win, No Fee" basis for a fee of just 12% + vat, which is only payable if you have a successful claim.
It's that simple. Take me to: