Could current consultation finally see debt management plans regulated?

There are a range of debt solutions available to help solve debt worries, each specifically designed for different levels of debt, the number of creditors and personal circumstances.  Our debt solutions table gives a handy overview of what options are available and I’d strongly recommended seeking impartial advice from a company like ClearStart, otherwise you could end up being financially worse off than you are now.

For IVAs, there is already a strict protocol for providers to adhere to, which ensures fair and consistent practice throughout the industry.  However, for Debt Management Plans (DMPs), which are the dominant force in the insolvency industry, there is currently no regulation whatsoever.

 A well-run DMP by a company such as ClearStart is definitely worth considering for anyone looking to get their finances back on track. Negotiations are done on your behalf with creditors to arrange a repayment plan at a rate you can afford and in many instances interest is either frozen or applied at a much reduced rate. Once the plan has been agreed, you simply make one easy monthly payment to your debt management company who then distribute it to your creditors until your debt has been cleared.

 In response to the growing debt problem and bad practice by some DMP providers, there is a consultation process currently underway which is being run by the Ministry of Justice, the outcome of which may well be increased regulation of Debt Management Plans – a move which would be welcomed by many in the industry and give much needed peace of mind to anyone entering into a DMP.

Nigel