Hi
Looking for some advice. My mother-in-law has been in an arrangement with Gregory Pennington for the last 12 years. Her original debt was around £10k and entered the arrangement with them as they said they could freeze the interest with the creditor. She has paid £100 a month without fail (around £14500 so far) and her latest statement says she owes more than the original debt. They also made her take a bank account through them as part of the arrangement.
This has only just come to light, feel she is embarrassed and has being somewhat ignoring the problem. I have not yet seen original paperwork but will go through it when i do. Surely no arrangement like this could be right?? To me it looks like they have taken £100 a month for nothing?!
Thanks in advance
Hi finnvanb.
Can you confirm that this is an informal "debt management plan" rather than something more formal like a debt arrangement scheme or trust deed?
The statement she receives would usually include detail about how much of that £100 per month is being retained by the company to cover their fees before distributing the rest to her creditors. Are you able to find out how much that is?
Has your mother-in-law continued to receive statements from the lenders directly at all? They'd usually show whether interest is still being charged.
Does your mother-in-law live in Scotland?
Dear finnvanb,
Hi, my name is Steve and I am one of the team here at Wilson Andrews / Gregory Pennington. I am concerned by your comments and would like to investigate them for you. Can you or your mother in law please contact us directly (via the contact address on our website’s contact us section) with her details – marked for my attention. As you would expect, we will only be able to respond directly to your mother in law (unless she gives us permission to speak to you).
Regards
Ian Williams - a member of the team at Wilson Andrews
Hi,
Yes it's is an informal arrangement as far as I am aware. She does live in Scotland. As I have not seen the paperwork so far I don't know what is happening with the money she pays. She just said she is now due more on the debt than ever. There are no statements from the original creditor, of which there is only one as it was a loan. From what I can see with others that have been with GP the usual fee is around £35 per month.
Hi Steven.
Thanks for the reply. I will ask her to call again, she has done recently and was told the balance was higher than original and the only other thing to do was a trustdeed. If she has paid 14500 and this is the case I am in complete disbelief.
Hi finnvanb.
On the surface it does seem like a switch to a more formal type of debt solution might be in your mother-in-law's best interests.
Informal debt management plans are very often a sub-optimal solution for residents of Scotland, but sometimes people who have been in one for a while already are reluctant to switch to something new even if the DMP provider is suggesting that they do so.
Hi finnvanb,
Please let me know how you get on after you have spoken to your mother in law so we can see how best to move forward with this.
I look forward to hearing from you soon.
Regards
Ian Williams - a member of the team at Wilson Andrews
Hi finnvanb,
I think you are doing the right thing by seeking some advice on behalf of your mother in law.
Does your mother in law own any assets such as her property or have any other assets? Also, is she employed?
It doesn’t quite sound right that she has been on a plan for 12 years and the debt is more than it first was. Hopefully this isn’t the case and there has been a miscommunication somewhere along the lines.
As TDA has suggested it could be the case that a more formal Scottish debt solution is suitable. This could be a Debt Arrangement Scheme, A Trust Deed or even Sequestration. All three of those options give a fixed timescale in terms of the plan length.
It might be a good idea for your mother in law to reach out and speak with a qualified Expert about her circumstances and for a second opinion on what her options are. Kevin or I the two Experts on the forum would be happy to help you both with this.
David is not currently posting in the Trust-Deed.co.uk forum
Thanks Steve, can you confirm if she should contact by phone, email or post??
Regards Finn
Thanks David. I have spoken with her this evening and she will contact Steven by whatever means is most suitable. I truly hope there has been a miscommunication as it's a huge amount of money for her!
She owns her house and is employed.
Hi finnvanb,
Thanks for finding that out about the house and employment status.
If your mother in law owns her property then a Trust Deed or even Sequestration will depend on the level of equity in her property. You wouldn’t happen to have an idea of how much equity she may have in her house or if she still has a mortgage over the property?
If the property has too much equity then a Trust Deed / Sequestration wouldn’t be suitable options as there would be too much risk associated with these options in regards to her house. In that scenario it could be the case that the most suitable option is a Debt Arrangement Scheme.
On a Debt Arrangement Scheme interest and charges are legally frozen if the plan is approved and accepted by the creditors. Also, the plan has a fixed timescale in that your mother in law would know exactly how long she had on the plan. There wouldn’t be any miscommunication associated with this plan.
Once she has established the position with her current plan and what balance she has left to pay it would be a good idea for her to explore all of her options to ensure that she is on the best possible plan.
David is not currently posting in the Trust-Deed.co.uk forum
Hi David, thanks again. She has around 80k in equity with around 7 years left on her mortgage. She is bringing all her original documentation regarding the arrangement with GP when she visits this weekend so we will hopefully be a step further forward. She is very unsure of what she actually signed up to which is not a great start!
Hi finnvand,
The best option may be to call in and speak to us. That way your mother in law can give us authority to discuss her account with you too, should she be happy to do this. Alternatively, if you ask your mother in law for her reference number, you can email that through to us, via the contact us details on our website and I can start to look at this for you.
Thank you
Ian Williams - a member of the team at Wilson Andrews
Hi finnvanb,
Thanks again for sharing this information with us.
Based on the amount of equity that your mother in law has in her property a Trust Deed / Sequestration (Bankruptcy) wouldn’t be suitable options.
I think her best option could be the Debt Arrangement Scheme. Obviously I say this with the limited information available and from what you have told us. It could be the case that after a full financial assessment things are different.
I’m sure if you arrange for her/you to speak with Steven and the team they will be able to explain things and provide some clarity. You can then decide from there what the next steps should be.
David is not currently posting in the Trust-Deed.co.uk forum