Paying for help for debt management, new protocol to protect those seeking debt help

Debt management professionals are there to give advice to those who find themselves deep in debt. These debt management companies will, of course, charge a fee for their services. There are times when debt pressure can only be relieved with help from a professional debt management company and now there is good news for consumers. There is now new protection for consumers paying for debt advice.

If you are one of those looking for help in getting out of debt, you can now rest assured that the new Debt Management Plan (DMP) Protocol has your interests at heart.  The new debt management plan will ensure that the standards in the debt management industry are clear-cut easy to understand as well as advantageous and helpful to the consumer who is paying for help in debt management and debt protection. If you are already in debt the last thing you need is to fall into the hands of a debt management company with no scruples. This would be going from a bad situation to a worse situation with your problems compounded.

 

There are 6 benefits to the consumer contained in the debt management plan which was introduced by the British Government this year.

  • Set-up fees will be spread out over six months and not taken within the first one or two months
  • Admin fees will cover the span of the debt management plan and reviews will be free
  • No other services or products will be sold to the consumer at the same time as he or she is asking for debt management advice
  • The consumer will receive balances and statements every 6 months of the debt review plan as well as a review of the situation
  • The consumer will be advised if the debt management plan should last more than 10 years and if so a reason will be provided
  • An annual review of the debt management plan to see if any of the circumstances have changed

As a result of the new DMP Protocol, consumers will have their rights protected when they pay for debt advice if they are dealing with debt management firms who are compliant with these government regulated standards. Note therefore that you must always check that the company you choose to give you debt management advice is compliant with the standards.

Furthermore that are 5 pointers that Creditors have to adhere to within the DMP within the first 10 working days of the application for debt protection, adding further help for those needing help with debt.

  • The consumer has 30 days leeway to enable them to get debt advice
  •  A stand-off period on all collection activity of 30 days
  • Advise the DMP provider why interest or other charges are being debited
  • Tell the DMP provider if the debt is transferred
  • Answer all requests from the DMP provider within 10 days

It is obvious that it is beneficial for a consumer who has sought debt management advice to choose a DMP Protocol compliant debt management firm as the DMP Protocol is designed to safeguard the interests of the consumer.  Debt management plan providers have to pass strict examinations held before an assigned body in order to obtain compliance.  Once they have met all the standards, which include updated computer programmes and changing internal operations, they will be allowed to display the relevant badge or logo on their website, showing their compliance. Make sure you look for it if you are looking for a debt management company to help you with your debt problems.

It is easy to fall into debt using credit and retail cards and overdrafts. There are other debts such as payday loans that can escalate if the payday loans are not paid back on the next payday. All credit can be useful and positive if used correctly and paid back on time.

Make sure you use a compliant debt management provider for your peace of mind.  Know that you are being protected when you pay for debt advice. Also note that there is free debt management advice if you live in the United Kingdom. It is worth looking at free debt management advice instead of paying for it when you are already in financial trouble.