Anyone else using or have used the DMP company with the name of Hanover Sterling LTD?
They have caused me nothing but hassle. They receive my money bang on the dot, 1st of every month by S/O. They appear to hang on to it (claiming they have to wait for the funds to clear) that's a laugh in itself. S/O is cleared funds when it arrives in their account! They then (apparently) wait 12 days before sending a cheque, YES... a cheque would you believe?? Ohhh... and use second class post too. Then apparently they have to wait 14 days for the creditors to cash the cheque. That's it!! No further checks are made to confirm if the cheque has been cashed or not! This procedure is carried out every month... SOOOOO, it's not surprising that the creditors are getting angry when the last payment they received was back in July!!!
My advice to anyone thinking of entering into a DMP... DON'T use Hanover Sterling LTD
Ohhh and one other thing. They forgot to mention (conveniently) at the beginning of the plan, that the first 2 (maybe 3) payments you make are not paid to the creditors, in fact these payments are their setting up fees and to add insult to injury, 20% of your monthly payment to them will be deducted as their fees! [:(!]
It's quite common for debt management firms to charge a setup fee and/or a monthly fee, but this should have been explained clearly before you signed anything. If not, then you may have a case for a refund and you should demand the company's refunds and complaints procedure.
I was with a fee paying company and had a similar thing. I have to say that I was impressed with them and I knew from the start that I had to pay a fee, but I did not pay a set up fee.
Truly - you do not have to stay with this company for a DMP, you can change.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Why not take a look at changing companies if you're unhappy with the service received. There are good DMP companies out there and hopefully you'll find one you're more happy with. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
DMP companies are required, under OFT guidelines, to distribute payments to creditors within five days of receiving cleared funds.
DMP companies are also required to set out their charges (upfront charges and monthly fees) clearly at the start of a debt management plan.
Usage of cheques is commonplace amongst DMP companies (and IVA companies).
Nobody has to wait 14 days until a creditor cashes a cheque. They cash it when they cash it. Some creditor companies bank and allocate cheques very quickly, some do not. By way of example one very major bank often takes three weeks or more to cash cheques sent to them by DMP companies as they generally seem to be behind on their administration.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
We used to get letters all the time from creditors who said they hadn't been paid, but when we rang the company they had sent cheques out.
In the end we just ignored the letters. We used to get regular statements so I knew the money was being paid.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
As Lesley mentioned why not look at changing to a different debt management company, A DMP is an informal arrangement that you can end at any time simply by stopping paying the provider. If you do this and do not have a new company in place then expect to receive calls and letters that your current provider may be taking.
Have you dug out your paperwork? As Andrew says, the company is required to state their fees and if you haven't signed anything explicitly stating these then I'd say you had a strong case for getting them refunded.
I never really understand why anybody would use a fee charging company for a DMP, or come to that why would a creditor accept them either, bearing in mind they lose 20% of the monthly payment?
I set up my own DMP with three creditors and it didn't cost me a penny and neither do the creditors lose any money, I make my monthly payments and 100% of that goes to the creditors. Why would anybody use a company that charges fees?
Not everyone feels comfortable dealing with creditors and also many have much more than three to deal with. Fee charging companies normally have a good record in getting interest and charges stopped and are also on hand if legal advice is needed. Ideally everyone needing a DMP would administer it themselves at an affordable level with interest and charges stopped, but this is not the case in reality.
Proactive debt management companies will work hard with your creditors to secure agreements, where possible, that involve interest being frozen or reduced. Other debt management operators do not actively chase this with the same vigour which can result in a weaker outcome for the client.
Good debt management companies make prompt payment to creditors which ensures agreed repayment schedules do not fail due to tardy payment by the DMP company. Other operators are known to distribute client money very slowly.
Good debt management companies will provide you with a single contact point that understands your case and circumstances and who responds to your enquiries quickly. Elsewhere you may be faced with the dreaded callcentre.
Taken from an earier post by Andrew Graveson.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I believe that a good DM company will always discuss self-management as an option, but most people who seek help are doing so because of the stress of dealing with their creditors directly.
I'm trying to draw up a self-help pack in my spare time (ha!), and I'd welcome any ideas you have yahwob.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The debt help charity site was where I started, basically just completed their income and expenses form and used their template letter to send off to my creditors.
Once you've done that you are on your own though. Maybe I was lucky but Barclaycard and Tesco reduced the interest dramatically and Sainsburys stopped it altogether.
You do have to deal with the creditors ringing you every so often though for updates, increased payments etc but I've found that if you are polite with them then they are easy to deal with. I usually get a six month review now and they usually go away happy if I increase my monthly payment by £5.00. They have never asked for any paperwork, proof of earnings or outgoings, and in reality the whole thing has been very casual, even been offered my Barclaycard back lol
Hi yahwob, that's a great post for people to read if they are considering managing their own debt solution.
I'm usually confident in most situations but I was worn out with the stress and my experiences with call centre staff was that they were unhelpful at best and nasty at worst. Frankly, By the time I started thinking about a proper once and for all solution I wanted a middle man and I would have paid the earth for their protection and advice.
