Some Debt Management Firms 'Holding On To Cash'posted on 27 May 2011 | posted in General Category | ( 0 ) CommentsIntegrity Financial Services Limited has welcomed an investigation by the BBC into debt management companies that have been holding onto clients cash rather than paying it to creditors. This practice is totally un-acceptable and on daily basis Integrity have people contact them who have found themselves in this situation with these companies, who have left them ultimatley out of pocket and facing an even bigger debt situation. The Office of Fair Trading (OFT) has condemned the practice as "totally unacceptable" and has promised a crackdown. Debt Advisors at Integrity who are very experienced in the industry and deal with people all over the UK have commented that estimates that 10,000 people could be affected may not be accurate, and that the figures could be as high as "35,000". One example featured by the BBC told of how a couple receiving 'cold calling" from a company called Global Debt Solutions, which is based in Bolton, and they offered to arrange a repayment plan for £40,000 of credit card debt and loans. But after making payments to Global Debt Solutions for several months, the couple found to their horror that the money was not being handed over to creditors. This example is common and is not just associated to Debt Management Companies. There are some IVA (Individual Voluntary Arrangement) Companies that do exactly the same, and for people in the IVA for the first 2 years in most cases no monies get paid out to creditors and it all goes in the pockets of the company providing the IVA. Global Debt Solutions, later known as 3 Step Finance, has been shut down by the Insolvency Service, which found that it did not monitor payments properly. In another twist to this situation it has also been reported that 'Debt Collection" Compnaies are also doing the same thing and not passing on monies to the company/creditor they are acting on behalf of. David Fisher from the OFT is promising action. "We regard the practice as unacceptable," he warns. "Where we have evidence we will remove a company's consumer credit licence, which means it cannot operate. "We will also next month be issuing stronger rules for the entire sector, which explain what we expect of them." Debt Advisors at Integrity have warned people to be on their guard when it is reported to take advantage of the free debt advice which is available from Citizens Advice, Payplan, National Debtline and other organisations. This may be offered as free debt advice but the debt solution that you may be advised to enter into with these organisations is not 'free" and in most cases people will end up in a debt management plan or IVA having to pay high fees or monthly repayments. Integrity are a professional, independant and impartial debt solutions company and offer ALL the UK's debt solutions. We will physically sit down with you in your home and advise on all the possible solutions depending on your actual individual financial situation, and in the end it's you thats decides whats best. We charge for our services becuase we are professional, but you only have to read our testimonials to see how we help people become debt free. Share this blog entry:
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