I have recently had problems with debt and am now starting a debt management plan. How do I stop my direct debits to FLM? Will it affect my guarantor?
jade1234 (9 mths ago)
I have recently had problems with debt and am now starting a Debt Management Plan with the cccs and i need to stop my direct debits to flm so the cccs can sort everything out for me how do i go about this? and will it affect my guarantor? they have guaranted everything, including my personal loan. I just need to cancel all direct debits. If I do this will my guarantor be affected and will the money be taken out of their account?
FLM Loans (9 mths ago)
Hi jade1234,
When you go on a debt management plan, your debt management company is very likely to offer us reduced monthly payment. We will be happy to credit any reduced payment they offer to us. However, this will not prevent us from approaching both you and your guarantor for any shortfall in the full amount, because your guarantor has agreed to make any payments that you were unable to by signing the agreement with us before we paid out the loan. The debt management plan will not stop the interests and late payment charges occurring either, which means your balance will become higher and higher when you are making reduced payment every month. Therefore making reduced payment will only make it more difficult for you to pay the loan off.
Another thing to note is that if the full payment is not received for so many days that we have to take legal action, it will affect both your and your guarantor credit files.
Therefore please make sure that all payments are made on time in full to prevent the consequences.
We cannot remove your direct debit details as we always need you to have a up-to-date bank account on file for the payments.
Thanks