BBC News: For Profit Debt Management Rogues

Yet again for-profit debt management companies are under the spotlight with a report carried out by BBC revealing some firms are holding on to clients cash.

The BBC discovered that some debt management companies were not paying their clients creditors within the 5 day guideline set out by the Office of Fair Trading (OFT).

The report by the BBC has found that these practices are becoming more common and people are at risk financially by these for profit rogues.

In order to protect yourself it is important you looking for the following before handing over money.

  • We advise always speaking with a debt advice charity who will be able to advise on the best debt solution
  • Whenever you speak with an organisation who is dealing with your finances always look for their credentials i.e consumer credit licence.
  • Always read the small print before agreeing to anything
  • Ask how long your debt solution would last and question the fees a company will take

Stuart Carmichael Trustee for Debt Support Trust said, “It’s unacceptable that vulnerable people in search of a route out of their debt problem are being hindered by greedy, thoughtless & money hungry debt management rogues.”

At Debt Support Trust we’ve noticed an increase in the number of cases where somebody in a debt management plan contacts the charity for help because they feel they are getting nowhere. After an adviser reviews the client’s case we often find the Debt Management Plan was the wrong debt solution for the person in debt.

Debt Support Trust is a registered debt advice charity (SC041902) providing debt advice on a range of debt solutions including;

Benefits Advice

General Debt Advice

Individual Voluntary Agreement (IVA)

Protected Trust Deed (Scotland)

Refinance

Bankruptcy

Sequestration

Debt Management Plan