Debt management person....

[Meg888]

I've had the above contact me regarding the balance owed to the lender of my house which was reposessed a while ago.

They assure me (by telephone) they are not a bailiff, that they are an agent employed by my lender to come around to discuss my inc/exp to see if I can pay toward the balance. I live in my partner's house, and though I have managed to accumulate a few bits since my house was repo'd, I have very little to call my own and the virtually all of the furniture is my partners. The overall debt amount I am in is a vast amount, and I'm probably well worth going bankrupt - but it's finding the £700+ to do it?? Not all of the debt is with this one lender. He says I don't have to speak to him, but if I don't the lender will continue sending people round to see me until either I do or I go bankrupt. None of the debt I am in is my partner's responsibility, and he's not keen on them coming to the house. I'm not sure what to do, as I'm worried he may well have some bailiff rights?

[Kristal53]

this sounds fishy - you are not obliged to invite anyone into your home however many times they visit and these sort of people (debt collectors) have to follow strict guidelines on where and when they contact you. I would inform them by telephone then by letter that you have no intention of meeting with them, and if they arrive at your home un-invited then you may have to report them to the Police. In my experience lenders do not 'employ' debt managers, they sell your debt to agencies who then make your life hell trying to get you to pay. My advice is to let them know you're onto their scam then ignore them - others may disagree.

[boxtops]

This sounds very odd to me - debt management people who ring you and cold-call are on a fishing exercise. There are other people who can help you - your bank, the local CAB, for a start, and they won't charge you. How do you know there are not other agents out there who could do it cheaper?

TBH I would have given this call more credence if your lender had written to you to tell you that they were appointing X company to contact you to discuss your debt - then you would have expected it. Why don't you contact your lender (ideally by email so you have a record of it in your Sent box) and ask them if this contact is genuine?

He sounds to have made you a very hard sell by saying that if you don't see them, they keep sending people round - I'm not sure that this sort of pressure is legal.

[chrissa1]

When I was having difficulties just before my husband died, I received a LETTER from my lender asking if their representative could make an appointment with me.
As it turned out I joined their Assisted Voluntary Sale scheme so nothing was done.

A telephone call could be from anybody. Tread carefully and good luck.

[Meg888]

Thanks for your replies. I don't think I have given enough info in my 1st question, so here goes. My house was repo'd 2.5 yrs ago, they bothered me for a while, but then went quiet. They then started writing again, but not threatening. I then started receiving letters from DMS - Debt Management Services about latter part of 2011, requesting I contact them, but again nothing threatening. Then the rep started calling round when I was at work and leaving a hand delivered note to contact him. He called last night and caught my partner as he was going indoors, and asked for me. My partner explained I wasn't in, and the gent asked if my partner knew why he was calling and he said yes. He then requested that my partner ask me to ring him that night, which I did, when he assured me he was not a bailiff. I told him I'd have a think about meeting with him and get back to him tonight. Do you think I should check him out with my CAB first? or just tell him to go away?

[AKMild]

According to their website, Debt Management Services Limited work for lenders where borrowers are in arrears or in other sorts of default. It is not that uncommon for lenders to outsource their recoveries activities to companies like this, as it is often more cost effective than to have an in-house team. You don't mention the amount of your debt, Meg, except to say that it is 'vast'. However, you do not say that you do not owe the money, so assuming you do, then the lender is almost certainly within its rights to appoint an agent to try and recover some or all of what you still owe. Unsurprisingly, the debt management industry is often painted as vultures preying on the weak, and in some cases this is exactly what it is. However, the idea behind the debt management company is to make some sort of recovery for the lender, for which they will be paid a commission.

If you have no net income and no assets but still owe the lender money, then you are likely to be technically insolvent, and should therefore consult the CAB or a licensed insolvency practitioner, who may advise you to petition for your own bankruptcy. This would have the 'advantage' of you getting a clean start in about a year, with all your previous debts written off, although if you own any assets now, most of these will be taken from you to be sold with the proceeds shared amongst your creditors.

The debt management company has no right to enter your partner's home (nor indeed yours if you had one of your own) and they are right to point out that they have no rights of distraint (acting like a bailiff). What they are looking for, I suspect, is a dialogue with you to ascertain whether there is any hope of any recovery for their client (your former mortgage lender), or whether their client should take steps themselves to make you bankrupt. Speak to them by telephone and tell them that you will seek professional advice, then go and see the CAB. You might well be better off bankrupt, if that's not a contradiction in terms.

[Meg888]

Thank you all for your sound advice.

[themas]

You should definitely explore bankruptcy. You may be able to get the fee from a charity - CAB should be able to advise on this.

Do not let this person into the house. If you wish, agree to meet him elsewhere (but take your partner with you), but you are under no obligation to do so.