# Has anyone used the services of a debt advisor?



## Brendan Burgess (15 Oct 2012)

I see ads for some companies claiming to be able to write down your debts by 75%

I have no direct experience of them. Has anyone else used them? Was you experience good or bad? 

I don't know the significance of the 75% figure. Has it any basis in law? 

Brendan


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## angela59 (16 Oct 2012)

No haven't used them but had a "cold" call from a company via phone looking for me to deal with them.  If I wanted to restructure mortgage they would do this on my behalf -charge for meeting me would have been E150 and then E150 if succuessful in restructure.  I didn't take them up I told them I could restructure myself if need be.

Angela59


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## Bronte (16 Oct 2012)

Where did they get your telephone number,  do you mean they are just randomly telephoning people to get business?


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## g05l (16 Oct 2012)

I spoke to moneyvillage people had a meeting with them too.

they could help me with any ''unsecured'' debt or mortgage, to deal with unsecured debt they would ask in the area of e500-e600 and all they do is tell you to stop paying, then they will agree minimum amount repayable and restructure the unsecured debts to match into the affordable amount they propose you to repay monthly. 
It's expensive service and many many of the dealings can be done with banks/bs/cu by their customers.

I decided not to go with them... decided to deal with creditors directly.


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## Wishes (16 Oct 2012)

I've been dealing with one of these companies for a few years now, since recession took hold.  So far I have not got a whiff of 75% being whipped off my debt but I have been told that all my creditors have agreed to the 'nominal' payments each month and that within five years my debts will be written off.

It all sounds too good to be true but I am a firm believer of having an intermediate involved while dealing with debt.


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## Bronte (17 Oct 2012)

Wishes could you not have negotationed the debt repayment arrangements yourself.  

What writedowns have you been given and how much do the intermediaries cost?  A few years is going to be a nice sum that would be better paying down debt?


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## Wishes (17 Oct 2012)

Hi Bronte,

I was finding it very difficult to restructure the debt so I had no option but to contact one of these companies.  

So far there has been no write down of any of my debt, apart from a vague promise of a 'write down' after five years.  I have however been told that all creditors have accepted the payment plan.  Under what terms and conditions, I do not know.  You are told very little.

Their fees will amount to approx 3k over the five year period.


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## Bronte (17 Oct 2012)

Wishes said:


> So far there has been no write down of any of my debt, apart from a vague promise of a 'write down' after five years. I have however been told that all creditors have accepted the payment plan. Under what terms and conditions, I do not know. You are told very little.
> 
> .


 
Wishes I understand why you hired a company, but I think you are leaving yourself wide open by not knowing what exactly is going on. Personally I'd want to know in writing what the creditors have agreed. And by in writing, I mean from the creditors not the intermediary.

Not sure how it works but are you sending your salary to the intermediary who then pays your creditors? Or what way does it work. 

I can certainly assure you that 'a vague promise' will most certainly be that is sales waffle in my opinion.  

Do you know by direct mail from your creditors at the very least annually that your debt is reducing?


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## Wishes (17 Oct 2012)

I have heard absolutely nothing from all my creditors since the day I began dealing with the intermediate.  You are told in no uncertain terms not to make contact with the creditor.  

After all utilities and food is bought I send whats left to the intermediate and then they administer the rest to my creditors.  

No direct mail from my creditors and no way of telling what is being reduced and what is not.  

I spoke to one of their sales team who let slip that they were working off the upcoming insolvency bill hence the write off of debt after five years???

Only yesterday I got a telephone call from the intermediate who asked me would I not consider bankruptcy.  Alarm bells started ringing; why would I bankrupt myself if I am paying a 'nominal payment' each month and the debts will be wrote off in five years???


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## demoivre (17 Oct 2012)

I don't get this ! If you aren't getting a write down by using the debt adviser then why not go to MABS which is free?


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## Bronte (17 Oct 2012)

Wishes said:


> I have heard absolutely nothing from all my creditors since the day I began dealing with the intermediate.


 
This is most alarming Wishes, how long since you've received anything from your creditors.  What documents did you sign for the intermediary that lets them have such full control.  


The intermediary cannot be working off the new insolvency bill as it hasn't even been debated yet never mind passed into legislation.  

Not trying to alarm you but there was a company that went bust last year in Dublin and they left a lot of people who were not financially literate in a lot of trouble.  

Please check up what is happening.


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## Wishes (17 Oct 2012)

Thank you Bronte, will do.  I have been wary of contacting the creditors after being informed not to, but I will ring them today.  

Regarding the insolvency bill, they have said they are proxy to the information contained in it and are heavily lobbying the contents of same????    

Hi Demoivre, I contacted MABS at the beginning but there was so much of a waiting list that I couldn't possibly wait that long.  I had the odd dubious looking debt collector calling to the door and felt I had no other option but to contact the debt advisers.


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## angela59 (17 Oct 2012)

Hi Bronte,

In reply to your question - yes the company just cold called - perhaps they were just going through the phone book - it started off as an introduction about the company and went on from there.

Angela59


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## Bronte (18 Oct 2012)

Bilbo1971 said:


> I have done all my negotiating in writing and the first creditor has recently accepted my offer. I set up a direct debit and have heard nothing from them since. I am waiting for a response from my second creditor regarding the 5 year plan but I'm quite confident that it will be accepted.
> 
> .


 
Well it's really heartening to know that MABS is so helpful.  Any chance you could share that advice, there are many people who need help and won't even pick up the phone to MABS or get put off by the fact there is apparently a waiting list to see MABS.  

Did you do the negotiating yourself with your creditors, is there a template letter etc.  Have you been able to negotiate any write down of interest/penalties and a lowering of interest rate?

Your success in tackling debt might be an inspiration to others who feel overwhelmed by their debt.  With your 5 year plan, which isn't so long really, I presume you'll be back on track.


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## Bronte (18 Oct 2012)

angela59 said:


> ,
> 
> yes the company just cold called - perhaps they were just going through the phone book - it started off as an introduction about the company and went on from there.


 
Thanks for the reply, interesting that they are just cold calling I wonder did anything trigger it, that they got your name from somewhere, a bank/credit card company etc. 

Anyone else get cold called? Are these debt relief companies springing up all over the place?  And more importantly are they regulated.


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## Brendan Burgess (18 Oct 2012)

Bronte said:


> Your success in tackling debt might be an inspiration to others who feel overwhelmed by their debt.  With your 5 year plan, which isn't so long really, I presume you'll be back on track.



Bilbo - fully agree with Bronte. Your success story would inspire and educate others. 

Any chance you would write a more comprehensive piece on the topic, which we would turn into a Key Post. 

Carmel did a great piece on trading up her house which has helped a lot of people. 

Something along the lines of 

Background and how you incurred the debts
First signs of trouble. 
Embarrassment of being in debt
Action from creditors
Sources of advice - MABS in particular
If you contacted any of the debt agencies, or considered it. 
Deciding to do it yourself
What you proposed. What they accepted.


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## Brendan Burgess (18 Oct 2012)

Wishes

Are you actually paying money to the debt dollection agency for them to pass on to your creditors? 

How do you know they are doing this if you are not receiving statements? 

What agreements have been reached with the creditors on your behalf? 



> Regarding the insolvency bill, they have said they are privy to the  information contained in it and are heavily lobbying the contents of  same????



I very much doubt that they have more insight into this than the combined wisdom of askaboutmoney posters. It's at the final stages in the Oireachtas, so it's unlikely that they have any advantage. 

Brendan


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## Kerrigan (18 Oct 2012)

Bronte said:


> And more importantly are they regulated.



As far as I am aware they are not regulated.  However, this year there was a shake up of the sector and a lot of them were closed down.  There are very few operating in the ROI, maybe 5 or 6 at max.  

Your problem now lies with agencies working in NI / UK offering their services whilst still based in the UK.  

Some time ago I worked in the industry but left, it just wasn't for me.  The vast amount of cases I dealt with were genuine but others left me scratching my head. 

I began asking questions within the company, which they didn't like, so I finally left.


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## Bronte (18 Oct 2012)

Kerrigan said:


> Some time ago I worked in the industry but left, it just wasn't for me. The vast amount of cases I dealt with were genuine but others left me scratching my head.


 
You mean people who had income but were hiding it from creditors?


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## Kerrigan (18 Oct 2012)

Bronte said:


> You mean people who had income but were hiding it from creditors?



Yes, possibly and potentially.  No payslips, bank statements ever asked for.  In most cases the debtor is just a voice down the telephone, as is the debt adviser.


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## Wishes (18 Oct 2012)

Brendan Burgess said:


> Wishes
> 
> Are you actually paying money to the debt dollection agency for them to pass on to your creditors?
> 
> ...



Hi Brendan,

Yes, I am directly sending money to the agent.  A budget was set up by the agency that I must follow each month.  The budget accounts for utilities, mortgage and food; whatever remains (same figure every month) goes to the agency.  The surplus is then divided amongst all creditors, along with the agencies fee.   

As mentioned, I am not receiving statements.  The only way I can tell my money is being sent to creditors is by using internet banking were I can see my debts online.

Regarding agreements reached with creditors; I have no written guarantee that any agreement was consented to by my creditors.  All I am going by is a verbal comment by the agency that the creditors would write my debts off after five years.  These conclusions are all supposedly derived from the insight they have into the insolvency bill.


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## demoivre (18 Oct 2012)

Wishes said:


> As mentioned, I am not receiving statements.  The only way I can tell my money is being sent to creditors is by using internet banking were I can see my debts online.
> 
> Regarding agreements reached with creditors; I have no written guarantee that any agreement was consented to by my creditors.  All I am going by is a verbal comment by the agency that the creditors would write my debts off after five years.  These conclusions are all supposedly derived from the insight they have into the insolvency bill.



If it was me I'd be looking for something in writing from these creditors saying that the total amount being repaid by you over the 5 years, via the agency, is in full and final settlement of what you owe them.


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## Alwyn (18 Oct 2012)

Demoive, I think people in Wishes case see 5 years as a million years away and before they know it the 5 years are here and their debt still stands. 

No offense Wishes but think you are too reliant on what this agency is telling you.  

I was tied up with one of these agencies up until a few weeks ago.  I wrote to them and told them not to act on my behalf again and I've heard nothing since.


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## Brendan Burgess (18 Oct 2012)

RTE is researching this industry and would like to talk to anyone who has any experience of them - either on or off the record. Give Tanya a shout on 01 - 208 2675 if you can help


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## ClaireM (18 Oct 2012)

Bronte said:


> Did you do the negotiating yourself with your creditors, is there a template letter etc.  Have you been able to negotiate any write down of interest/penalties and a lowering of interest rate?
> 
> on track.




There is an interactive tool on the MABS website where you can generate letters to creditors, financial statements etc


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## Gardener (30 Oct 2012)

If you are looking at securing a Debt Relief Notice in the forth coming Personal Insolvency Bill 2012, it may be a problem for a debtor who is currently engaged in a debt settlement arrangement.

An agent from a debt management company will have entered you successfully into a debt management plan which will make you ineligible for the Debt Relief Notice.

This is worrying as the debtor may have had their debts written off under the DRN but they will now be left to pay a "token" under some DMP.

Maybe worth a trip to your nearest Citizens Information office to educate yourself further.


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## Wishes (31 Oct 2012)

I don't believe as a property owner that I will be eligible for the relief notice but I see were you are coming from.


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