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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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The debt management company l have been using to resolve my

Resolved Question:

The debt management company l have been using to resolve my debts has liquidated & have lost the £4,000 I had paid to them. I have been to the CAB who say there is nothing l can do to get said money returned. Why do these type of companies get away with this?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

What is it you want to achieve? Do you know whether the £4000 has been paid to any of your creditors please?

Customer:

yes in total £650 was paid to my creditors & a lot if fees! have not heard anything from said company & was not advised they were going out of business.

Alex Watts :

Sadly you could have used a Charity for free called Step Change

Alex Watts :

http://www.stepchange.org/

Alex Watts :

Contact them now

Alex Watts :

They may be able to contact your creditors.

Alex Watts :

If you had made payment to this Company the creditors may write off that sum

Alex Watts :

But otherwise sadly all you do is lodge a claim and become an unsecured creditor

Alex Watts :

But in reality that money has gone

Alex Watts :

If you want to make a complaint you can do so to Trading Standards

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

I am now using a CAB debt advisor, thanks. However she could not explain why these type of companies seem exempt from refunding paid in contributions.Surely even when these types of companies are acting within the law, keeping (stealing) the contributions is not.

Alex Watts :

Sadly the £ you pay is not protected.

Alex Watts :

They charge a fee for what Step Change do for free

Alex Watts :

But your creditors may be sympathetic and write off the sums you paid but they have not received

Alex Watts :

Does that help?

Customer:

creditors are still wanting payments. How do they get away with it is my main question. I do realise the money is gone.

Alex Watts :

Go to Step Change

Alex Watts :

They can write to the creditors showing the payment to the debt management company

Alex Watts :

They then may write off the sums you have paid

Alex Watts :

Or CAB could write for you

Alex Watts :

But there is no guarantee

Alex Watts :

If they refuse to write it off you do still owe the £

Alex Watts :

I am sorry that this may not be the answer you want and certainly not the one I want to give you, but I have a duty to be honest

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

What benefit will lodging a claim?

Customer:

Lodge a claim with whom? & Trading Standards will be overrun with these types of complaints.

Alex Watts :

Yes I am sure they are

Alex Watts :

You lodge a claim with the Administrator who would be dissolving the Company and selling assets, if any

Customer:

How do they get away with it legal loopholes??? Thats all l need to know.

Alex Watts :

Sadly they are regulated by the OFT through Trading Standards.

Alex Watts :

Please see:

Alex Watts :

http://www.debtadvicefoundation.org/news/2010/01/11/ministry-of-justice-issues-debt-management-guidelines

Alex Watts :

This show the rise of complaints.

Alex Watts :

I am sorry but it is a regulatory matter with Trading Standards

Customer:

ok thanks.

Alex Watts :

If this answers your question might I invite you to rate my answer

Alex Watts :

If the system wont let you please do say

Alex Watts :

If you need more help please click reply

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