Dodgy debt clampdown is great news

Hello Andrew and Wealthwatch, Thank you both for your interesting and courteous replies. Informed and polite debate is what we aim for at lovemoney.com and I'm delighted to see it here. I'll reply to some of your points: [i]"It's my belief that the OFT report does have an agenda - and that is to help create an industry consumers can trust, rather than to run us all out of town."[/i] Yes, I suspect that probably is their agenda. So yes, if we can create a private debt management industry that offers top quality service, I won't object. However, I think yesterday's report does show that too many debt management companies are dodgy. We need to close these guys down and that's the most important issue for me at the moment. I accept that there are some private debt advisers out there who care about their clients and are doing their best to act in their best interests. [i]I am pretty darn confident that inappropriate IVAs don't get through these days. Since the IVA protocol was put in place between creditors, IVA providers and government there are so many checks and balances that this would be almost impossible to do.[/i] That's interesting, thanks for letting me know. [i]talking to people I know who say it is, I get the impression they [secured loans] are damned difficult to get just now.[/i] Yes, that's true. The secured loans industry really collapsed in 2008. Prior to then, my understanding is that too many people were being pushed towards secured loans which often proved to be a bad decision. The debtor would act as though his debts had been 'written off' and his debt problem would just get worse as a result. But yes, this hasn't been a major issue for the last couple of years. And yes, you're right, if secured loans take off again, they'll be more likely to reduce dmps than IVAs. I accept that. [i]I would invite you to phone all the charity debt companies and ask the debt advisor for their personal mobile phone number and house telephone number so that they can be [/i][i]contacted at any time. I know what they would say. My clients have that privilidge.[/i] That's impressive. I can't argue with that. I'm interested in what both of you have to say on this. I'm sure there's much more I can learn. If either of you live or work reasonably near me, I'd be interested in meeting up and discussing these issues some more. If you're interested in this, feel free to drop me an email. You can find my contact details on the right hand side of this page: [url=/inside/media-centre/]http://www.lovemoney.com/inside/media-centre/[/url] Regards, Ed

This. looking at the other side of what CCCS do, [url=http://blog.cleardebt.co.uk/iva-cccs-new-guidelines-may-increase-iva-case-payments-by-17-pounds-per-month_18842]makes interesting reading[/url]. It's from a colleague of mine whose taken a look at the new guidelines for spending introduced by CCCS and which shows that, despite two years' inflation, the new guidelines seem to make life harder for debtors than the ones that have just been superceded. One has to remember that not only are CCCS funded by creditors, but they represent them, on things like contribution levels, too.

Mr Bowsher, I run a debt management company and have done for a number of years. I don't belong to any debt management organisations, because I don't need other company members telling me where I go wrong. I am one of the companies that DIDN'T receive a letter from the OFT. I didn't expect one as I treat and respect all my clients with the utmost care. I became a debt counsellor after being in debt myself and ultimately started my own company, so I know exactly how people in debt feel. I disagree with your suggestion that charities can give better advice. I am CeMap qualified( so can advise on Mortgage debt) and am just completing my Financial Advisors exams, which are an FSA prerequisite to give financial advice. Charities do a good job, but no better than I do. I am totally independant and don't rely on handouts from creditors to run my business as they do. I too don't charge any upfront fees and only charge 10% of fees( not 15% like CCCS receive from the banks). I don't wish to elaborate on how charities are allowed to be so called, but I have a licence number from the Money Advice Trust and so can use the CFS figures that all the charities use...or are supposed to use. Please don't tar us all with the same brush. I would invite you to phone all the charity debt companies and ask the debt advisor for their personal mobile phone number and house telephone number so that they can be contacted at any time. I know what they would say. My clients have that privilidge. There are good DMC's out there, but do your researc. Find the good companies and being in debt won't be the nightmare that it was for me! Thank you Charles