Strange phonecall - debt, then offering pull debts together with zero percent

[Harry Bloomfield]

I received a rather strange phone call this afternoon, where the person ringing was chasing someone for debt - obviously not me, but the person speaking was desperate then help me sort out my non-existent debt. He claimed something about being able to amalgamate all of my debts that I don't have, and have never had, then I would have to pay no interest on any of them, something about a government backed scheme. He sounded rather disappointed that he was speaking to someone with no financial issues, but told him he had best remove my number from what ever list he had found it on.

I was in a store shopping at the time, so really wasn't paying much attention, but I do happen to know someone in an incredible financial mess and zero interest would really help them out, so was this guy for real is the question? I am aware that you can go bankrupt, as one potential option, but is there another way.

 

[just pumps]

Simply a SCAM call!

 

[Harry Bloomfield]

Simply a SCAM call!

I would tend to agree, except I recall hearing of a scheme to consolidate debts and thus reduce the interest payable.

 

[big-all]

I would tend to agree, except I recall hearing of a scheme to consolidate debts and thus reduce the interest payable.

there are many legal companies but some border on criminal intent as they take a large part off the monthly payment as a fee so the amount payed back is perhaps double or more

 

[Old Salt]

Barclaycard are currently doing a 0% interest on card transfers if it's any help.

 

[big-all]

Barclaycard are currently doing a 0% interest on card transfers if it's any help.

sometimes 0% interest can be deceiving so you need to check as in no interest charged on transfers but the normal monthly interest on ballance
and another card can be indeed zero interest for say 18 months but a fee to transfer

 

[big-all]

as an aside
i never ever act on a phone call for any reason unless-------------------
-----its from an expected source my calls always go this way

ring ring --who is it please
them hello how are you
me -who is it please
if its not a person i expect like pharmacy''nurse'doctor'hospital etc
please remove me from your data base- thank you and i hang up with zero further interaction
i also never confirm who i am on answering the phone just heeelllooo so those that know me know its me

 

[Odds]

NEVER accept advice of this nature from an unsolicited caller. Ever.

That is all.

 

[cdbe]

They're called Debt Management Plans, they're official in some way - a company will basically (for a fee) consolidate and manage your debts - I think they work out what you can afford and make an offer your debtors can't refuse (on the basis that a bit is better than nothing). After making the payments for an agreed period the remainder of the debt is written off. Presumably better than bankruptcy etc, especially if you have assets and/or want to have some kind of financial credibility in the future.

Obviously cold callers probably aren't the best way into this.

 

[JohnD]

When an anonymous person wearing a balaclava knocks on my door, I always give them all my financial details. When they go on to ask for my bank account number and balance I always tell them. Then I give them permission to act as they think fit, and sign whatever papers they give me, agreeing to pay them thousands of pounds in charges.

Why should an anonymous person on the phone be different?

Surely they are charitably acting in my bext interests, and not trying to skim off whatever they can take?

 

[Harry Bloomfield]

They're called Debt Management Plans, they're official in some way - a company will basically (for a fee) consolidate and manage your debts - I think they work out what you can afford and make an offer your debtors can't refuse (on the basis that a bit is better than nothing). After making the payments for an agreed period the remainder of the debt is written off. Presumably better than bankruptcy etc, especially if you have assets and/or want to have some kind of financial credibility in the future.

Obviously cold callers probably aren't the best way into this.

Thanks, that - I think, was what I had heard previously.

 

[^woody^]

They're called Debt Management Plans, they're official in some way - a company will basically (for a fee) consolidate and manage your debts

DMP and consolidation are different.

DMP is simply a way of asking a creditor to accept a repayment plan, and will convince a creditor that you are serious about dealing with unmanageable debts. The idea is that once accepted, the creditor freezes all future charges and interest and you pay off the debt via lower payments over a [normally longer] period of time. Often to allow the person to sort out their finances and take some pressure off.

It has no legal basis and is just an informal agreement, but the creditor should not take any further recovery action as long as the repayments are kept up to date. There should be no fee to set this up as the debtor merely makes the offer and agrees the plan directly with the creditor.

Consolidations is different and is basically another loan to pay off all debts, and this new single loan is then paid off over a longer period of time with a lower single repayment - however over all the total repaid is larger than the original debts as the extra interest is added.

 

[RandomGrinch]

I'm not a full-on scam baiter, but if I can, I try and keep them on the phone for as long as possible; at least if they are wasting time and call credit on me, they might not be calling a vulnerable person.

 

[^woody^]

but I do happen to know someone in an incredible financial mess and zero interest would really help them out, so was this guy for real is the question? I am aware that you can go bankrupt, as one potential option, but is there another way.

Bankruptcy is one option, but if the person has a house that they do not want to loose, then an IVA is another option.

Point your friend to

StepChange Debt Charity. Free Expert Debt Help Advice.

for free advice on all the options and help with whatever option is best

 

[^woody^]

I'm not a full-on scam baiter, but if I can, I try and keep them on the phone for as long as possible; at least if they are wasting time and call credit on me, they might not be calling a vulnerable person.

I once got a call into the office from some Indian chap telling me that my Windows was not working properly and he could help me. Obviously, I though it was the office windows, not the computer windows (which was working OK) and that was concerning. And it was one of the best 10 minutes of my life, but probably his worst. I loved his assistance with my attempt to plug a network cable into the hole below the window handle so he could diagnose it.