I noticed on one of the other threads that you made reference to statutory debt management/repayment plans. This is an area that I am interested in as none of the debt solutions are really suitable for me at present (high level of debt, some equity in house so cant go bankrupt, insecure low income so IVA not possible and DMP will take over 20 years). Have you at CCCS been given any idea of the timescale for this process or what decisions are likely to be made?
I won't answer specifically for Sarah - but can say that we do not expect there to be much change in the current DMP process - apart from the fact that DMP companies will be subject to tighter standards and full regulation.
and was hopeful that something like their recommendations might provide the way forward. Do you think then that this is unlikely and that what is more likely is for more regulation of companies offering DMPs rather than the development of a statutory debt repayment plan offering debtors for whom an IVA is not suitable more security in terms of frozen interest/charges and the prevention of enforcement action?
Do you have any thoughts to what is likely to be made available for those thousands who the CAB make reference to as being unsuited to any of the current debt solutions?
It is just a pity that the CAB appear to be so anti commercial debt management companies.
The idea of a paying just one pound per month to creditors whilst the debtor sorts out a solution is fine but only if the creditors agree to freeze interest and charges, otherwise the debt will spiral and so will the calls.
I would doubt that creditors will agree to a forced freezing of interst, instead I would expect that DMP companies will be carefully monitored [and so they should be] and creditors will continue to dictate the terms of any agreement.
Regards
I used a commercial DMP company and was more than happy with the service we received. We only swapped to an IVA because we would have been paying the DMP for about 20 years.
I really think that CAB should recommend more than just CCCS or Payplan.
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
I can't really comment on any of the commercial DMP companies, I am with CCCS and have felt very supported by them so far. All of my creditors have (so far) frozen the interest and accepted a low monthly payment from me. Prior to that, I negotiated with creditors myself and was successful with this so it didn't cross my mind to pay anyone for doing it! In addition, I work for a charity where I deliver a professional service to clients for free and have seen first-hand that paying for something does not make it any better than accessing it through the not for profit sector.
It is the insecurity of a DMP that concerns me most (something that I guess would be the same whoever I was with) and is my reason for hoping that the statutory DRP would be brought in. It would be a shame if, as Andy has predicted, creditors continue to dictate the terms especially as this causes such hardship for those in debt and considering how many creditors have been bailed out over recent times. I do think that they need to be open to additional solutions in order to enable people to pay back as much of their debt as they can in the most appropriate way, since this benefits all parties.
Hi
The not for profit sector will never be able to cope with the level of help needed if there were no commercial companies in the market. The two can work together and allow the client to make a choice. There are very poor debt management companies in the market place and this does need addressing, however there are also very good commercial companies that do offer value for money and excellent advice. It is a pity that there value does not seem to be recognised by the not for profit sector.
Regards
I have to say that the company I used, and I paid for the service, was excellent. Interest and charges frozen from day one and never a problem when I needed to speak to anyone.
I can recommend fee paying companies.
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
I read the CAB consultation paper when it first came out, and there is a lot of good stuff in there but some things are not realistic in my opinion. I am in favour of heavier regulation to the DMP marketplace, but as Andy says the so called "charity" sector cannot cope with the sheer volume of enquiries to the extent that they may only scratch the surface with finding a true debt soluton to suit their clients.
The main lenders will also have to buy into any changed plans, and I do not feel that they will be rushing to give up their rights to legal remedies against errant customers either. An in election year - who knows who will have the right agenda! Watch this space!
I noticed on one of the other threads that you made reference to statutory debt management/repayment plans. This is an area that I am interested in as none of the debt solutions are really suitable for me at present (high level of debt, some equity in house so cant go bankrupt, insecure low income so IVA not possible and DMP will take over 20 years). Have you at CCCS been given any idea of the timescale for this process or what decisions are likely to be made?
Thanks
Hi hunnybunny,
I’m not sure of specific details unfortunately, just the general things that I have read on the internet.
Sarah
Last edited by CCCS Counsellor on Mon Feb 01, 2010 3:28 pm, edited 1 time in total.
CCCS is a registered charity. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
I had cause to visit a very large creditor recently and was assured quite categorically that any self penned DMP's, and especially those that had received advice from the CAB as to "pay a £1 per month" would not be accepted and no cessation of interest and charges would be possible under those circumstances. Their view was that they were actually far more likely to receive a much greater return if a debtor had approached a professional company and, as such, would freeze charges immediately upon receipt of authority, followed by all interest on receipt of final proposal.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
What a strange attitude to take, surely if someone has little or no disposable income then whoever they seek advice from will not be able to magic more income from somewhere?
In addition, from my experience a lot of people who have little available income have experienced difficult times (relationship breakdown, illness, bereavement, redundancy) in order to have been left in that position so a lack of support from creditors when they are at least trying to pay something is the last thing they need.
