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Originally posted by 5corpio
Some debt management companies have been holding on to clients' cash rather than paying it to creditors, a BBC investigation has found.
The practice has left heavily-indebted families thousands of pounds worse off.
The Office of Fair Trading (OFT) has condemned the practice as "totally unacceptable" and has promised a crackdown.
One senior figure in the debt management industry says 10,000 people could be in danger from the practice.
If a firm goes out of business and client funds are not kept in a protected account, some or all of the money is likely to be lost.
Horror
The firm, Global Debt Solutions*, which is based in Bolton, offered to arrange a repayment plan for £40,000 of credit card debt and loans. The debt had mounted up after Mr Murphy lost his job and Mrs Murphy had a spell in hospital. 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. "Our creditors have taken us to court," says Mrs Murphy, "so we have County Court Judgements and now we're going to court on the mortgage."
The Murphys' debt problems had actually got..........Read more of this story HERE
*The above Debt Company is not longer trading GLOBAL SOLUTIONS, Alias : 3 STEP FINANCE - been shut down by the insolvancy services
If you read the whole story on the above Link, you shall also notice another Debt Manageing company called APEX Debt Counselling & Management WHO WENT OUT OF BUSINESS in March 2011 - a company now called Debtclear who has taken over the accounts
If you read the HMRC Media News:where they have signed up 10 DCA's A company called APEX Debt Management is mentioned - i wonder if they are the same?
The practice has left heavily-indebted families thousands of pounds worse off.
The Office of Fair Trading (OFT) has condemned the practice as "totally unacceptable" and has promised a crackdown.
One senior figure in the debt management industry says 10,000 people could be in danger from the practice.
If a firm goes out of business and client funds are not kept in a protected account, some or all of the money is likely to be lost.
Horror
Nina and Ged Murphy told BBC News that they had had to put their house on the market and could face repossession. They say it was the result of responding to a cold-call from a debt company.
The firm, Global Debt Solutions*, which is based in Bolton, offered to arrange a repayment plan for £40,000 of credit card debt and loans. The debt had mounted up after Mr Murphy lost his job and Mrs Murphy had a spell in hospital. 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. "Our creditors have taken us to court," says Mrs Murphy, "so we have County Court Judgements and now we're going to court on the mortgage."
The Murphys' debt problems had actually got..........Read more of this story HERE
*The above Debt Company is not longer trading GLOBAL SOLUTIONS, Alias : 3 STEP FINANCE - been shut down by the insolvancy services
If you read the whole story on the above Link, you shall also notice another Debt Manageing company called APEX Debt Counselling & Management WHO WENT OUT OF BUSINESS in March 2011 - a company now called Debtclear who has taken over the accounts
If you read the HMRC Media News:where they have signed up 10 DCA's A company called APEX Debt Management is mentioned - i wonder if they are the same?