Need advice please Debt Management

[Monadami]

Hi Everyone,

When the subprime crash occurred, I was in the middle of buying an investment property, I'd placed my deposit etc, but my lender pulled out and said I could only have the mortgage if I put down a higher deposit (the property was vastly over valued too, but that's another story)

Anyway, at that point I was just getting my financial situation under control. I wanted to pull out of the purchase, but was told the Developers would sue me for breach of contract and I'd have to pay their leagal fees too, so I saw no option but to borrow further money, which plunged me back into debt, but deeper.

About a year later I became pregnant, went on maternity leave and realised the only way to help my situation was to get a debt management plan. I contacted a company called "Money Worries" and for a fee they promised to contact my creditors and agree a manageable monthly sum. (I probably didn't need to go through such a company and should perhaps have contacted the CAB)

Of course, this company took their fees up front. I was unable to pay for a couple of months and they assured me I would receive monthly statements, stating how much had been paid and to which creditor. I have never received any statements and I have creditors contacting me, saying they haven't been paid.

When I eventually managed to get through to Money Worries on Wednesday, the call centre operative had nothing much to say, he had no info as to where my money is going and it's now the 4th time they have promised to send me a statement. I have never received any, I asked him to get his manager to call me and he said he would, of course she didn't.

What I would like to know is, what should I do? What steps should I take in this situation? My OH suggested I contact all my Creditors and ask them to send me a statement, detailing what they have received from Money Worries. After that, what should I then do, write and complain to the company?

Also, is there a Financial Ombudsman I can contact if I get no satisfaction. These people should be regulated, as they also loan money. I know they have paid some money to my creditors, but getting the information out of them has been impossible. I just want to know my money is being paid to where it should be and not fraudulently swallowed up by the company.

Any advice would be greatly appreciated.

Thanks

Unfortunately Moneyworries does not appear to be regulated by the FSA (at least their website doesnt say they are which is a legal requirement if they are). Therefore, it would be the OFT who you would have to complain to I think.

They don't actually lend money- their sister company, "Yes Loans" does. In fact there are quite a few complaints about people calling up "Yes Loans", being denied a loan, and being put through to "money Worries" without being advised that they're now talking to a completely different company.

It appears you are far from alone on the Money Worries complaints. Sounds as though it's a shambolic operation to say in the least- a company whistleblower reported boxes and boxes of returned cheques stacking up uncashed due to admin errors by MW.

I think your OH is probably right. Someone (either you or a debt management charity) needs to contact your creditors and explain the situation, find out your remaining balance and go from there.

Btw- the developer would have been highly unlikely to sue your for BoC- it would have been advisable to have got some legal advice at that point.

if it's any help i used payplan for for DMP - they don't take any fees and you can check all the account etc online - they've been very helpful.

I'm not sure if i would cut my losses with money worries and find someone else - CAB could help with that -

Thank you both for your advice. I really should have been more sensible and will contact my creditors and then speak to someone at the CAB to see if this can be sorted out more efficiently. MW seem to be giving me even more worries.