DMP termination fee

[MichaelMarsh]

Hi

 

I'm just about to enter into an IVA if all goes well (creditors meeting 25th March) so wrote to my current Debt Managment company to inform them to cancel my DMP with them selves with immediate effect.

 

They emailed me today saying that want a termination fee of 1 months payment to close the account down.

 

I emailed them back asking for documentation that I had signed agreeing to a termination fee in any sort of contract as I knew nothing about this procedure.

 

Have I done the right thing and are they allowed to do this?

 

Thanks

 

M

Edited March 8, 2013 by MichaelMarsh

[citizenB]

Well you are certainly entitled to a copy of the terms and conditions so that you can check if this "termination fee" is mentioned. I am surprised you dont already have a copy of these, were you ever provided with a set ?

[IdaInFife]

what dmp company is it?

[AndyOrch]

This is from DebtPlan Direct T&Cs

 

" 5.6 You have the right to withdraw from your debt management plan at any time without paying any early termination fees. If this agreement is ended in accordance with section 7, we will return any undistributed funds after having deducted the above fees and you will not have to pay us any more money. This will be done within 30 days of receipt of written confirmation in order to allow us time to process all receipts and payments on your account."

 

Kensington FMC T&Cs

 

6. Termination of agreement

 

6.1 You have the right to cancel this agreement at any time and for any reason within our 14 day cooling off period as required by the Consumer Protection (Distance Selling) Regulations 2000.

6.2 On receipt of your fi rst payment we will issue to you a key feature document and estimated fees schedule. If for any reason you wish to cancel we offer a fourteen day cooling-off period from the date of this letter in which we offer a full refund of any fees which we have taken.

6.3 After the fourteen day cooling-off period you may end this agreement by giving us four weeks notice in writing.

6.4 We may end this agreement by giving you four weeks notice in writing if any one of the following things happens:

i) You breach this agreement and do not remedy the breach within seven days of our bringing the breach to your attention;

ii) A bankruptcy petition is issued against you;

iii) You enter into an Individual Voluntary Arrangement / Trust Deed;

iv) Where the information provided to us is knowingly incorrect;

v) The Information provided by you at the time of acquiring a loan (HP agreement, credit cards or any other form of credit) is deemed incorrect or fraudulent by any creditor; or

vi) If we are affected by Force Majeure.

6.5 When this Agreement ends:

i) Our duties and obligations under his Agreement will come to an end;

ii) Your liability to your Creditors will continue to the extent that any amounts you owe to your

Creditors remain outstanding over and above the repayments made to them by Us.

6.6 If you terminate this agreement in order to start an IVA with Knightsbridge Insolvency then you will be charged an IVA proposal fee which will be the equivalent of ONE monthly payment to your Debt Management Plan.

[nottslad]

if they won't budge, cancel the payment to them and include their 'fee' in the IVA, it would be too late for them to vote against the IVA, and I would have thought it would take them past the MOC date in order to invoice you for the termination fee,

[MichaelMarsh]

Hi

 

Sorry for the long reply.

 

My debt management Co was Knightsbridge Financial. Since I emailed them back on 8th March asking for proof of the termination fee in any contract that I had signed I have heard nothing since.

[citizenB]

Have you cancelled any Direct Debit/Standing order to them ?

 

How did the Creditors meeting go ?

[MichaelMarsh]

Yes I have cancelled direct debit and standing order

 

My creditors meeting went as best as I could have imagined.

 

I had £62,00 worth of debt with £46,00 of that being a shortfall on a house. My 2 biggest creditors amounting to £54000 accepted with no modifications at 13p to the £1. Obviously my IP wa happy about this also as his fees were not reduced either.

 

I had 1 creditor asking for the IVA to be increased to 6 years and payments to go up by an extra £50 a month, but they only accounted to 8% of the vote so they're modifications were rejected.

[citizenB]

Hey that is pretty good news in the circumstances. I guess you can now see an end to things !

[AndyOrch]

Hi

 

Sorry for the long reply.

 

My debt management Co was Knightsbridge Financial. Since I emailed them back on 8th March asking for proof of the termination fee in any contract that I had signed I have heard nothing since.[/QUOTE]

 

[MichaelMarsh]

Yeah, defo Long 5 years ahead of me but it will be worth it.

[citizenB]

Yeah, defo Long 5 years ahead of me but it will be worth it.

 

We would be interested to hear how you cope with this situation if you feel able to let us know from time to time - it will help others facing a similar situation.