Do CCCS contribute to this forum ?

[CCCS Counsellor]

Hi iamfubb2,

We do contribute to this forum occasionally and we monitor the discussions here on a regular basis. However me and my team's role is to answer debt questions, rather than talk about CCCS's position within the wider debt management community.

If you've got a query that you'd like answered by a CCCS debt counsellor then we have a permanent thread on the MoneySavingExpert forum and also talk on Twitter and Facebook as 'MoneyAware' (you can send us a private message through any of these if you'd rather not post publicly).

We also have LiveChat available on the contact page of the CCCS website if you'd like to speak to a counsellor 1-2-1.

Or, obviously, you can give us a ring on 0800 138 1111!

Hope this helps,

Peer on behalf of CCCS

[mattyboy]

When I looked into whether I should go into an IVA I contacted several charity companies and was told to do a DMP over 7 - 10 years rather that an IVA, a few months after receiving this rather poor (in my opinion) advice I contacted a commercial company who went down the IVA route.

I know it is only my experience but I found the commercial IVA company to provide a more personal and attentive service and I found that they had my interests more at heart than the charities. When it comes to selecting an IVA or DMP firm I cannot stress enough the need to contact a few recommended firms and go with whoever you feel will look after your needs the best and who you want to enter a 5/6 year relationship with.

I went with a large commercial firm and to be fair was never made to feel like a number.

I do though think you need to receive full advice on the differences between an IVA and DMP and weigh this information up before making a decision. Do be aware that 'charity' firms may not have your interests at heart.

[Adam Davies]

Hi

What is The CCCS stance on PPI reclaims for their clients in IVAs ?

Regards

[iamfubb2]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Broke of London

@iamfubb: I would have to agree that deciding on whether you'd prefer an iva or dmp should be a priority. Whats making you undecided?

The DMP (CCCS) would last for 8 years and 8 months and i presume the IVA(Payplan) would be for 5 years at a similar premium. Just seems from info and comments on the forum and elsewhere, that a DMP has more "flexibilty" than an IVA and, starts paying creditors more quickly therefore , avoiding extra interest and fees. I have had a few estimates from independent IVA companies and the norm seems to be 2 months premium upfront and, 17.50% of same after that, which in effect would be adding to my debt in the short-term.

Just to further confuse the problem i have just received a letter from DWP that i have got an award for DLA, £164.40p every 4 weeks Just rang CCCS who told me that if it is intended for personal care needs it does not have to be included in the budget?! Would the same apply in an IVA?.

Sorry it's been a long- winded reply but just trying to make a proper choice in finding a solution.

Oh and have you read the post by the CCCS rep? What do you think?

[Broke of London]

I'm not too clued up about DMPs but believe they are more flexible than an iva. That said, if your income drops or expenditure rises iva payments can be flexed too. I chose an iva because I was guaranteed interest and charges stopped and because I had an end date to work towards. A DMP had too much flexibility for me! Not all firms require up front fees to propose an iva - who did you speak to?

[Adam Davies]

Hi

In an IVA all income has to be declared but you may be able to offset some/all of it with increased expenditure.

Regards

[Michael Peoples]

DLA is included as income but then excluded as the money is needed for purposes outside of the CCCS guidelines. It should not affect your payments at all.
If you decide to enter a DMP with the CCCS there is no guarantee interest and charges cease so your DMP could run indefinitely whereas an IVA has a definite end. DMPs are gentemen's agreements offering no legal protection so think seriously about entering one when you could have the stability and protection of an IVA.

[Broke of London]

Really should read posts more carefully. I've just seen your last question iamfubb. I think they are annoyed at those of us who questioned their position in the debt community but there are a lot of ways for you to get in touch with them. Perhaps you could ask them directly via one of their channels about their success rate getting interest and charges stopped for the full duration of the DMP. That's not loaded in any way - just that I know you want to know and I don't have the answer.

[Michael Peoples]

You probably will not get the answer either. Given that they are paid a commission it is financially better for them that the DMPs run indefinitely and interest and charges not to stop. Also, as they do not charge the client any fee they do not have to justify their actions whereas a professional firm has to get interest and charges stopped to justify their fee.

Your decision ultimately but do your homework before you commit.

[size5]

iamfubb2 writes "The DMP (CCCS) would last for 8 years and 8 months and i presume the IVA(Payplan) would be for 5 years at a similar premium. Just seems from info and comments on the forum and elsewhere, that a DMP has more "flexibilty" than an IVA and, starts paying creditors more quickly therefore , avoiding extra interest and fees. I have had a few estimates from independent IVA companies and the norm seems to be 2 months premium upfront and, 17.50% of same after that, which in effect would be adding to my debt in the short-term."

There is so much wrong with that statement that it is difficult to know where to start. I am in no way having a pop at iamfubb2 by the way, but it, to my mind, reinforces some of the popular mis-conceptions that may exist elsewhere.

It isn't necessarily true that a DMP has more flexibility at all. IVA payments can be amended very easily, things like payment breaks etc can be arranged. Whilst these courses may not be ideal, it stands to reason that reducing a DMP payment, or missing one, is not ideal either. "A DMP starts paying creditors more quickly therefore avoiding extra extra interest and fees". Garbage, absolute codswallop. Yes, a creditor will start seeing money quicker on a DMP than an IVA, but as you can't force them to freeze interest on a DMP then you run a significant risk that they won't. On an IVA, the interest and charges have to be frozen by law once accepted, so the timescale where they don't receive money is irrelevant. You will run up far more in the way of interest and charges in the short term on a DMP than you will on an IVA in 99.9% of cases for that very reason.

The fees described by iamfubb2 seem to bear more relation to a DMP than an IVA, I don't know of many IP firms that would charge 2 payments upfront, and the fee afterwards looks more like a DMP as well. The timescale is significant as well. Estimated 104 months on a DMP (may be much more if they don't freeze interest) or, typically, 60 months on an IVA. I applaud anyone who takes a deliberate decision to repay creditors in full, but financially there is little comparison. Of course, BR could well work out very much cheaper even than an IVA and so should also be considered. Whatever way a debtor chooses to address the problem is entirely their decision, but to start the journey without being in possession of the full pros and cons of all solutions is just not right.

[iamfubb2]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by size5

iamfubb2 writes "The DMP (CCCS) would last for 8 years and 8 months and i presume the IVA(Payplan) would be for 5 years at a similar premium. Just seems from info and comments on the forum and elsewhere, that a DMP has more "flexibilty" than an IVA and, starts paying creditors more quickly therefore , avoiding extra interest and fees. I have had a few estimates from independent IVA companies and the norm seems to be 2 months premium upfront and, 17.50% of same after that, which in effect would be adding to my debt in the short-term."

There is so much wrong with that statement that it is difficult to know where to start. I am in no way having a pop at iamfubb2 by the way, but it, to my mind, reinforces some of the popular mis-conceptions that may exist elsewhere.

It isn't necessarily true that a DMP has more flexibility at all. IVA payments can be amended very easily, things like payment breaks etc can be arranged. Whilst these courses may not be ideal, it stands to reason that reducing a DMP payment, or missing one, is not ideal either. "A DMP starts paying creditors more quickly therefore avoiding extra extra interest and fees". Garbage, absolute codswallop. Yes, a creditor will start seeing money quicker on a DMP than an IVA, but as you can't force them to freeze interest on a DMP then you run a significant risk that they won't. On an IVA, the interest and charges have to be frozen by law once accepted, so the timescale where they don't receive money is irrelevant. You will run up far more in the way of interest and charges in the short term on a DMP than you will on an IVA in 99.9% of cases for that very reason.

The fees described by iamfubb2 seem to bear more relation to a DMP than an IVA, I don't know of many IP firms that would charge 2 payments upfront, and the fee afterwards looks more like a DMP as well. The timescale is significant as well. Estimated 104 months on a DMP (may be much more if they don't freeze interest) or, typically, 60 months on an IVA. I applaud anyone who takes a deliberate decision to repay creditors in full, but financially there is little comparison. Of course, BR could well work out very much cheaper even than an IVA and so should also be considered. Whatever way a debtor chooses to address the problem is entirely their decision, but to start the journey without being in possession of the full pros and cons of all solutions is just not right.

Regarding the upfront fees and 17.50% Norton Finance for one, the guy i,spoke to told me it was the law!!.

Thanks for the answer you gave but i was pointing out only things i have been told, read, or seen on this forum and various other sources. Trying to get all the "pros and cons" it would be easier to try and juggle soot. "Garbage and Codswallop" a tad harsh but no offence taken[:)]

[Broke of London]

Hi iamfubb! I don't want to talk for Mike but his comments seemed to me frustration at the information being given out and a concern that you are furnished with the full information before you make this important decision. Up front fees as a legal requirement?!?! Why not give one of the experts on the forum a call before making the decision? They can appraise you of all the options, not just iva.

[MelanieGiles]

I am suprised that you have been asked to pay two payments up front by commercial firms of IPs. This is certainly not necessary as many firms will do all of the work required to present an IVA proposal without payment until the proposals are ready to be presented to creditors or have been actually accepted.

Of the two firms you have chosen, can I suggest that you ask to speak directly to the insolvency practitioners who would represent you in the event that you decided on an IVA. You may find that you get better clarity of the options available to you, but speaking to the horse's mouth. It is clear from your posting that you are somewhat confused about the mechanics of both options, and it is therefore important that you get good, direct professonal advice in arriving at your ultimate decision.

[iamfubb2]

A slight correction it wasn't Norton finance, it was Express Debt Solutions, though i'm sure there is a connection

[size5]

BOL has got it. Absolutely.

There are lots of firms that will propose an IVA without any upfront fee at all, no win no fee if you like, so it being a legal requirement is a new one on me. That is an example of mis information. There isn't a legal requirement to pay an upfront fee for a DMP either by the way, although most firms will charge upfront for a DMP.

Regards.