SAY GOODBYE TO YOUR DEBTS

DEBT REDUCTION - Example>

Mr and Mrs Eastwood from Exeter came to us in September 2007 with around £21000 of debt across 7 creditors. They were paying out almost £1700 a month and were £3800 behind with their mortgage.

1 month before they contacted ourselves, The Eastwood’s had been in touch with a large debt management company. That company had already completed the initial stage and lowered their monthly payments from £1700 to £380. This is how much The Eastwood’s could afford to pay each month.

But because this amount was so low in relation to the debt, hardly any interest had been frozen or stopped which meant the debt would keep growing until The Eastwood’s were in a position to pay the debt off – this would take more than 11 years!

And now for the next stage of our process – establishing their true debt. Following our investigation, we discovered we could claim, refund or write off:

• £1104 from I Group for late penalty charges levied on the mortgage account, which are unenforceable, and recoverable by law.
• £1952 from Blackhorse for mis-selling a Payment Protection Insurance (PPI) policy, which is recoverable by law.
• £1652 from Welcome Finance for mis-selling a Payment Protection Insurance (PPI) policy, withholding secret commissions and late penalty charges which are recoverable by law.
• £3950 from Swift Loans for mis-selling a Payment Protection Insurance (PPI) policy and withholding secret commissions which are recoverable by law and because the credit agreement was wrongfully written we wrote off the balance of the loan.
• £623 from Capital One credit card for late penalty charges levied on the account which are unenforceable, and recoverable by law.
• £523 from Egg card for late penalty charges levied on the account which are unenforceable, and recoverable by law.
• £900 from Catalogue debt 1 for not having an enforceable agreement.
• £700 from Catalogue debt 2 for not having an enforceable agreement.

The next stage is to register and initiate all claims with creditors, and insist that all interest be frozen and all contact with our clients cease as all debts are in dispute. Creditors have to agree because legally they have no choice. This takes an average of 5-8 months to complete all claims and acquire all payments from creditors. In this example we had written off £10054 of the debt they owed. That’s equal to nearly 44% of the debt being taken away.

During this time The Eastwood’s were completing the final stage by paying £380 per month into a savings plan and had saved nearly £2000. We added this to the money we’d acquired and agreed settlement figures on all but two of the debts. More importantly, by October 2008 The Eastwood’s will be debt free.

You will not have to deal with creditors yourself and any letters you may receive, you simply forward on to us.

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