As they are based in Manchester thus cannot administer Trust Deeds I'd guess they'd take an admin fee off you then pass you and your details to a Scottish Insolvency Practitioner to do a Trust deed.

I'd suggest go direct to a IP.......

Hello graham.

I understand that the business model used by this company is not what most people would consider to be a conventional debt management plan.

Some people have some pretty strong feelings about these alternate debt management models and the potential risks.

If you're considering a debt management type solution of any sort my advice would be to look at the Debt Arrangement Scheme. It can guarantee frozen interest and protection from legal action. First Step Finance, unless they refer you elsewhere, cannot guarantee either.

There's more I could say on this, but hopefully I have said enough.

Hi TDA

Now you have me curious!

Is this the deal where the arrangement is they pay a minimum amount for ages in the hope that the creditors get so fed up that they decide they'll accept a vastly reduced amount to settle the debt?

Mark

Good morning Mark.

As I understand it, the legitimacy of each credit contract is challenged first. You'll remember the subject of "unenforceable credit contracts" and the feedback of our members who had this included as part of their trust deeds.

I believe other claims activity, such as PPI, is looked at as well.

At some point whatever debt is left (which could easily be all of it, plus some interest and charges) becomes subject to a debt management plan.

The client is clearly legally exposed throughout.

And presumably there is a fairly hefty up-front fee to pay too?

Hi Kevin.

I understand that there is effectively a menu of pricing according to the different activities that are being worked on at any point in time.

You make it sound so appealing.......

It's one of these things that come up from time to time that strongly divide opinion.

No doubt the company concerned strongly believe in the offering that they're making available to the public.

Many people who work in the more traditional debt management and insolvency industries are concerned with this type of business model being associated (in the media and the public mind) with what they do for their clients.

The title of this thread shows how that can be an issue for any member of the public who, quite naturally and understandably, may not be able to distinguish easily the differences between these schemes.

Hopefully will be moving from this company who have got me deeper in the **** excuse my french , they promise you the world with false promises and really in my view they should be closed down. Have a meeting on Monday with Shona who hopefully will help us get out this mess that i and this company have made is worse.

Hello graham.

I do hope that your meeting with Shona goes well and you can find a way forwards that gives you more security and certainty. I'm sure that you will.