First Step Finance does have a Minded To Revoke (MTR) notice on its Consumer Credit Licence (610509), but this has been open since December 2010. This doesn’t mean that the business is being shutdown, but it does mean that you should be cautious. They are listed as a member of the Debt Resolution Forum (DRF). In the first instance I would suggest that you contact First Step Finance to put your mind at rest and to determine whether they have had any success in dealing with your creditors through their ‘debt resolution’ business model. Debt Management Today did cover their response to this matter in March 2011: 

http://www.debtmanagementtoday.co.uk/newsstory?id=1143&type=newsfeature&title=debt_resolution_we_are%2C_debt_management_we_are_not_

Unlike a traditional Debt Management Company, who have to provide an estimate of the duration of your Debt Management Plan (DMP) under the OFT Debt Management Guidance, First Step Finance need to provide you with a clear outline of how you will become debt free. This is not readily apparent, as they are using a variety of techniques to negotiate with your creditors. If you have been with them several months then you should be receiving monthly statements and progress reports. The same points will apply to Gregson and Brooke, who operate a similar model to First Step Finance. My initial impression is that you received an unsolicited call from a competitor where the sales agent has acted unprofessionally. This is not the first contact you have had with them and are understandably cautious.  

My feeling is that you need to work with First Step Finance, as switching providers can break the continuity of your debt solution and creditors can change their mind with regard to accepting proposals, including freezing of interest & charges. You should be contributing based upon what you can afford and your creditors need to be made aware of your current circumstances, especially if you are suffering increased financial hardship. 

Should you remain dissatisfied then you should look at either using a free-to-consumer provider that is able to offer you an early appointment or a commercial debt solution provider that operates a recognised code of conduct and is a member of one of the primary trade associations. These are: 

www.demsa.co.uk/members

http://www.debtresolutionforum.org.uk/members.php

If you elect to switch provider then you should look for a provider that does not charge you a new set-up when switching from another debt solution provider.

“Pension release is a specialist area of financial advice and will depend on your age, as the products are primarily designed for those over 55 years of age. If you are using the funds for debt consolidation purposes then you will need to find a financial adviser that is both authorised by the Financial Services Authority in the provision of advice on pension release and licensed by the Office of Fair Trading for debt counselling. The risks of drawing down your pension early need to be fully explained.”

Where you have one or more debts with your bank, where you hold a current account, it is fairly common practice to recommend that you move banks to either a basic bank account or an account like the Secure Trust Bank current account, which will accept people who are on a DMP, IVA or are bankrupt. Most high street banks offer basic bank accounts, though they may want to offer you an account with credit facilities if they are unaware of your circumstances. Many Debt Management Companies offer a bank account through a reputable bank.