Latest News From The OFT – Payplan’s Reaction
Today the Office of Fair Trading has announced they are imposing requirements on Money Advice Direct Limited (or MADL). This comes after concerns from consumers about them being mislead by their advertising.
MADL are a lead generation company, which means that they introduce consumers to DMP’s and IVA’s to providers through their website.
There were concerns raised about false and misleading content on their website with regards to the funding they receive. MADL pass client details on to other companies who deal with IVA’s and DMP’s in exchange for a fee. Their website gave the impression previously that they were a non-profit organisation.
The OFT’s Director of Consumer Credit, Ray Watson released this statement:
‘It is important that consumers seeking help for debt problems know who they are dealing with and whether the company is providing an actual service or is simply a lead generator.’
Payplan are constantly backing the OFT’s work to improve the standards of the Debt Management sector to ensure that it is a safe and trusting environment for those vulnerable people in need of help.
If you are struggling with debts then please call Payplan on 0800 2802816.
Don’t forget you can also follow me on Facebook and Twitter.
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What is a Trust Deed?
If you live in Scotland you have a few different options available to you to help with your debt problems. You cannot do an IVA, so alternatively there is the Trust Deed.
What is a Trust Deed?
A Trust Deed is a voluntary, legally binding agreement between you and your creditors and deals with only unsecured debts. You will be appointed a Trustee, this is the role held by the Insolvency Practitioner. The Trustee will negotiate repayment terms with your creditors on your behalf.
The Trust Deed usually last for three years. Similar to other plans your surplus will be calculated, plus any assets that you have will need to be taken into consideration.
With an ordinary Trust Deed, your creditors can still seek further action against you to recover the money owed and not all creditors have to agree to the terms.
What is a Protected Trust Deed?
The Trust Deed may be registered as protected, which means that it is legally binding, providing that certain criteria is met. Once the Trust Deed is protected, all of your unsecured creditors are bound by the agreement and must not contact you. They will also freeze interest and charges.
Unlike other legally binding agreements, the Trust Deed doesn’t need to go through the courts.
Do I qualify for a Trust Deed?
In order to do a Trust Deed you do need to fit a certain criteria. The main thing is that you must live in Scotland. You must have unsecured debts, however if doesn’t necessarily matter how much as a Trust Deed depends on your individual circumstances.
What happens to my creditors?
All of your creditors that agree to the Trust Deed will be bound by the agreement. All creditors are asked to agree to the agreement; if they do not respond then it will automatically be accepted. For any creditors that aren’t included in the Trust Deed they can still look at other methods in order to recover the money owed, but this only applies to those creditors not bound by a protected trust deed.
For more details then please click here
If you are struggling with debts then please call Payplan on 0800 2802816.
Don’t forget you can also follow me on Facebook and Twitter.
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Debt Collectors
From my past experience, working very closely with clients, a lot of people get very confused by debt collectors and often confuse them with bailiffs.
What is a Debt Collector?
A debt collector is NOT A BAILIFF. A debt collector will either buy a debt from a creditor or they will be assigned by the creditor to simply collect the debt on their behalf. A lot of bigger creditors will have their own ‘in-house’ collecting agents.
The difference between buying a debt and collecting the debt is that those collecting on behalf of a creditor have no legal rights over the debt and therefore cannot pursue you with legal action without the authority of the original creditor.
What rights to Debt Collectors have?
A Debt Collector is in no way a bailiff and therefore they have no rights whatsoever to enter your home. Some debt collectors will send notices through your door to say that they will be visiting, and people often panic when they receive these. What you need to remember is that they have no powers to force entry into your home or seize goods or demand money from you.
What to do if a Debt Collector calls?
If a debt collector either calls you or visits you at home then you treat them as you would any other creditor. As long as you are maintaining some sort of payment to them, then you needn’t worry. Sometimes debt collectors can be demanding, but you just need to remember to stand your ground and only pay them what you can afford.
For more details then please click here
If you are struggling with debts then please call Payplan on 0800 2802816.
Don’t forget you can also follow me on Facebook and Twitter.
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Debt Relief Orders
When people think of ways to resolve their debt problems there are a few options that always come to mind: Debt Management Plan, Individual Voluntary Arrangement or Bankruptcy. However there is another possible solution available, a Debt Relief Order.
What is a Debt Relief Order?
A Debt Relief Order (or DRO) is sometimes referred to as BankruptcyLite. It is very similar to bankruptcy except it doesn’t hold as much stigma and it costs a lot less to do. A Debt Relief Order can only be authorized by a qualified intermediary, Payplan are one of few that can do this.
Can anyone do a Debt Relief Order?
To answer that simply, no. In order to qualify for a Debt Relief Order you must owe less than £15,000, you must have assets worth less than £300 and you must have a monthly surplus less than £50.
You cannot apply for a Debt Relief Order if you are an un-discharged Bankrupt, have an Interim Order, or have a Bankruptcy or Debt Relief restriction order.
What is the process?
The first thing that you would do is obtain a copy of your credit report, check that they are all listed and add any that aren’t on to a list of your creditors and confirm how much you owe, you would then send that into us here you would then complete an income and expenditure form. Once this has been completed then you would need to go to the Post Office and pay the £90 for the initial application for the Debt Relief Order. Once this has all been done then your DRO application will go through and you will enter into what is called a moratorium period will last 12 months. During the 12 months you will be assigned an official receiver who will be asked to investigate your situation, your debts and your assets to make sure everything is correct and as it should be.
At the end of 12 months as long as everything is ok, then you will be released from your debts.
What happens to my creditors and debts?
During the 12 month moratorium period your creditors can still add interest and charges onto your accounts. At Payplan we advise that you do not notify your creditors about the Debt Relief Order. All payments towards the debts listed should cease during the 12 month the moratorium is in place. This means that your creditors cannot take legal action against you (unless under exceptional circumstances) and will no longer chase you for payments as long as the order is completed successfully.
What happens if my situation changes?
If your situation changes during the moratorium period then the official receiver would need to be notified and it would be your responsibility to do this. They would review your situation to see if the Debt Relief Order is still possible.
How long will the Debt Relief Order be on my Credit Report?
The Debt Relief Order will stay on your credit report for six years from the beginning of the process, the same as Bankruptcy, IVA and Default Notices.
For more information click here.
If you are struggling with debts then please call Payplan on 0800 2802816.
Don’t forget you can also follow me on Facebook and Twitter.
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