Has anyone used the services of a debt advisor?

Brendan Burgess said:

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?



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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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.

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.

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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.

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.

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

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.

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

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.

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.