Struggling with debt can be an incredibly difficult and stressful time. There are millions of UK citizens suffering with crippling debt problems who are struggling to find a solution. In recent years, many of these consumers have sought the help of a Debt Management Company. After hearing a number of promises and guarantees, debtors have signed up to Debt Management Plans in the hope that this will be the solution to their financial problems.
There has been an increasing number complaints to the FOS (Financial Ombudsman Service) made against these companies. These have mostly been from consumers who feel they have received poor advice, insufficient information and a sub-standard service. Many consumers are now realising that some companies were not entirely transparent about the fees that would be charged or about the damage that a Debt Management Plan would incur to their credit rating.
A Debt Management Plan is an informal debt solution that is aimed at consumers who are struggling with their monthly payments. When you invest in a Debt Management Plan, you agree to make payments to your Debt Management Company, who will then distribute those funds amongst your various creditors on a regular basis. The payment that you make through a debt management plan is significantly less than your normal contractual payments, meaning that your credit score will be severely affected and your debt will last for a significantly longer period.
There are a number of reasons why this sort of product will have been mis-sold to the consumer. Many companies will simply not have been entirely clear from the start, while others may simply not have carried out the appropriate administration of the plan in a professional manner. Furthermore, there are many different solutions for dealing with debt. A Debt Management Plan may have been recommended to the consumer despite there being considerably cheaper and more appropriate options available. This has been the cause of much frustration and distress for debtors, as outstanding debts may have been cleared more quickly and for a better price with a different solution.
If you believe that you have been mis-sold a debt management plan, it’s important that you get in contact with Council Tax Advisors CIC today, the free debt advisory service. There are numerous reasons why your Debt Management Plan may have been mis-sold. Here are just a few of the reasons that may apply to you:
• The Debt Management Plan was not the best solution to your situation
• You were not made aware of the setup fees charged
• You were not made aware of the monthly fees charged
• You were not made aware that a similar service could have been provided free of charge
• You were not made aware of the impact such a solution would have on your credit rating
• You were not made aware that interest and charges would continue to be applied by creditors
• Regular distributions were not made to your creditors
If any of the above reasons apply to you, or you believe that you were mis-sold a Debt Management Plan for another reason, contact CTACIC today. You may be entitled to make a claim for your money back. As a debt advisory service, we will be able to mediate between you and the Debt Management Company, as well as provide comprehensive advice about contacting the FOS. We have all the information you need about putting in a claim for mis-sold Debt Management Plans.