Follow this topic Q&A » Debt

what do you make of these companies offering to write off your debts through identifying mistakes in original paperwork?

by georgia sarah 25 May 2009 |

10 comments | Love

Love 0 loves

I recently responded to a TV ad and contacted the company. They seemed personable and friendly. I established that they would want me to pay (by standing order) 25% of any 'winnings' and also extracted out of them an admission of further costs in the form of 'audit' fee of £99 (per claim?). I haven't as yet proceeded. I would appreciate feedback from those 'in the know' or having had experience of this process.

Report

Enjoyed this? Show it some love

Retweet

Comments (10)

Facebook

Twitter

General

Comments (10)

129

Donna Ferguson posted
I'd avoid them like the plague.
I'll highlight this to my colleague, Neil Faulkner, who knows a bit more about this topic - but in my view, you should stay away. You can get very good free advice from a range of debt charities, such as Citizens Advice or the National Debtline.
Basically, any company that tries to make money off you when you're seriously in debt is not a company to get involved with, in my opinion!
Donna Werbner
(Acting Editor, lovemoney.com)
Posted on 25 May 2009 | Love 0 loves Report
804

MikeGG1 posted
Basically, they are leeches preying on the most vulnerable and desperate. They take money up front with only occasional success.
It is much better if you get yourself out of your problems. If not, they are likely to recur.
Good luck.
Mike
Posted on 25 May 2009 | Love 1 love Report
29

Neil Faulkner posted
Hi, Donna told me about this thread. Sorry for the slow response.
Avoid these companies. So far, the evidence I've seen strongly says 'sharks'. Maybe there's a good company providing these services somewhere, but you can do all this stuff yourself for free. Visit the excellent Consumer Action Group website for more:
consumeractiongroup.co.uk/forum/general-debt-issues/162851-consumer-credit-agreements-guide.html
Furthermore, the method for challenging these contracts has been to take the lender to court, but you'll find it hard to do this right now. Thousands of cases have been put on hold (one news site estimated 100,000, but I haven't seen the evidence) by the courts whilst just a few are tested. Therefore now may be a bad time to even consider this tactic.
If you have debts, no matter how big or small, you should also seek opinions on the Dealing with Debt discussion board: boards.fool.co.uk/messages.asp?mid=11394605&bid=50079
The people on that board can help absolutely anyone to reduce their debts more quickly. National Debtline is another of my favourites. Both provide quality advice to all people with debts and are impartial, unlike companies that charge you merely to tell you that there's nothing wrong with your contract anyway!
Neil
Posted on 26 May 2009 | Love 0 loves Report
0

georgia sarah posted
Thanks all those above for your prompt responses. I was indeed contacted by a company (unsolicited, which I've been advised is illegal) who wanted 'up front' 'fully refundable' fees. Not having been born yesterday, I duly avoided.
The one I contacted recently did not take any fees upfront, but said that they took things on a no-win, no-fee basis and only looked for payment of 25% of whatever had been agreed between the creditor and the debtor after settlement/agreement had been reached. They said that most didn't go to Court but often a middle ground of reasonable'ness' was reached. They also said that my credit rating would not be affected but, on more closer enquiry, I did establish that probably that company (or any others related, no doubt) would probably not lend again. So in effect, the same thing. Overall, though, they seemed less unscrupulous than the other 'sharks'.
My debt management is pretty good in that I've managed to take advantage of 0 or low % rates, balance transfers, etc, etc, but if the major breadwinner of the household (of five children and a mortgage taken out in 2006) loses his job in October 07 and doesn't secure permanent employment in the meantime, save throwing in the towel and/or denting one's credit rating (and paying for it forever) through going through the 'official' debt management routes, I have consciously borrowed money to keep us afloat, basically hoping for better times. There have been some improvements and, as long as we can honour all our debts (and haven't to date missed a single payment on anything), I continue to be optimistic. Sites such as 'Motley Fool' have raised my fiscal awareness significantly over the years, and I do try to stay clear of really dodgy manoeuvres, hence seeking advice, for which, thanks again. Please do offer further comments/advice if you're moved to do so!!
Posted on 26 May 2009 | Love 0 loves Report
0

KCW1980 posted
Hi Georgia
My credit score and file was in a right mess due to my total stupidity and lack of understanding about these things whilst a student and the few years after finishing Uni. I found a great little guide, totally all legit, to clearing and having things removed from your file.
Just to make sure I understand - do you have bad credit or defaults etc on your credit file? Or is this current debt which you are paying as you should but want to try and get rid of?
thanks
Posted on 28 May 2009 | Love 0 loves Report
0

georgia sarah posted
Hello KCW.
Thanks for your response. I have no bad debts or defaults (save a couple of dips over O/D limit with bank in last year). Debts currently all being 'paid as expected'. Burden ever greater as cash flow still problematic and therefore debt increasing. Nearly up to limits on all cards now though. Did succesfully get a 0% one recently, but will run out of space soon, as limit was low. I have avoided applying for any new ones apart from this over the last year and more as I know that your credit rating is affected every time you apply for a card and your total debt burden is all factored in.
So my file should be OK ish with nothing bad to clear. I am looking to reduce our outgoings/increase incomings as much as possible as soon as possible. Have never been totallly reckless with money, more a case of chronic underfunding/over commitment and a few unfortunate timings along the way (eg CSA payments over-deducted/loss of job/rented accommodation withdrawn with little notice, having to find outlay at short notice with no cash in the bank, sort of thing).
Any useful comments/tips gratefully received.
Posted on 28 May 2009 | Love 0 loves Report
0

thinkoutsidethebox posted
Has anyone ever looked into this properly? I am a mortgage advisor, I have seen this process work myself and refer clients regulary.
It relates to the Consumer Credit Act 1974 and it seems to me that it is very mis-understood.
Basicaly the Consumer Credit Act 1974 was set up to protect consumers from unfair or unsavoury lenders. The rules in the act are very strict and if there are breaches then the agreement is deemed unenforceable. No judge has the power to enforce the agreement if there are breeches.
I agree that there are probably lots of companies out there trying to rip people off. However as long as you ensure the company is regulated by the Ministry of Justice then you should be ok.
Lenders are doing everything they can to stop people from using this process and it wouldn't surprise me if people in the press are being paid to dismiss it.
The law was changed in 2006. Any agreements which started after April 2007 you can challenge the case in court but must be present yourself. Prior to this date you can instruct a third party with no involvement yourself, hence the rise of these companies.
So that suggests to me that someone in parliment knew this problem was in the post.
Posted on 27 July 2009 | Love 0 loves Report
0

paul26may posted
Thinkoutsidethebox is the only respondent to say anything sensible. I don't know where the rest of you get your information from but none of you know what you are talking about! I'd advise anyone to avoid asking financial quaestions on this forum if this is the standard of answer! By the way I am an Independent Financial Adviser.
Posted on 02 August 2009 | Love 0 loves Report
0

thinkoutsidethebox posted
It works!
www.yourfreshstart.org.uk
Posted on 27 October 2009 | Love 0 loves Report
17

poppasmurf posted
I think this works, but not too sure on the ethics of the companies doing it.

IT was recently said that this is the producing of photocopy of a CONTRACT a legal and valid document is allowed. Most banks scan the signed contract then destroy the original.

My argument is that I cant use a photocopy of my passport as a legal DOCUMENT or a photocopy of my driving liscense or a photocopy of my birth ceritificate as proof it or I exist for anything. The same should apply to contracts of this significance and standing.

If a contract has been lost or cannot be found, with in the time limit for such a request, banks have been known to fake contracts. One actually got the tippexed (photocopied) contract with the contracts name scribbled over the top. Some cut out and paste a signature from a recent letter to the bank and re-photocopy.
Posted on 26 November 2009 | Love 0 loves Report

Post an answer

Something you're dying to ask... or answer?

Get started now

Sign in for a better Q&A

Registered already? Great! You can just sign in to ask and answer questions.

W3C Thank you for using Three Kings