Switching Debt Management Plans Your Questions Answered

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What can you do if you’re unhappy about your debt management plan?

Many people carry on regardless, putting up with poor service and continuing to receive hassle from their creditors.

You don’t have to put up with this situation and shouldn’t.

Switching debt management plans can be a relatively straightforward process and can offer you a number of important potential benefits.


Switching Away From Poor Debt Management Companies

It’s no secret that there are many poor-quality debt management firms in the UK. Many have failed to invest in providing their staff with knowledge and professional qualifications. Some ask a single member of staff to supervise many hundreds of clients meaning that they have little time to dedicate to your case.

Often very little effort is made to negotiate with creditors that haven’t agreed to offers, haven’t offered any concessions on the debt and which may be continuing to hassle you.

If your enquiries are being dealt with very slowly or unhelpfully, if your creditors aren’t agreeing to your plan, or if they’re continuing to load on more interest and charges to your debts, the answer may be to switch to a new debt management provider.

Would you put up with this level of poor service from any other company that you use?

Are You Contractually Tied To Your Existing Debt Management Provider?

The answer is that you almost certainly are not restricted contractually from switching away from your existing debt management firm.

The FCA’s rules for debt advice firms state clearly that your terms and conditions must explain how you can cancel your contract and the notice period that applies.

In some instances, it might be as simple as cancelling your payment to them, though you may prefer to give them notice by email or in writing so that they don’t start chasing up payments from you. Debt management plan providers will usually cancel a plan where a client misses a few payments without explanation anyway.

What Is The Switching Process?

The new provider will want to have an understanding of your circumstances. This will give them the information that they need to work on your behalf or help them to advise you whether a different type of debt solution might be in your best interests.

The information they’ll need will include:

  1. Your current income and household expenditure. This is probably information that you’ve given to your previous provider and you may have paperwork from them detailing these figures.
  2. Your debts. You may well have a statement from your previous provider with a list of the debts, balances and account numbers.
  3. Your assets. Information about things such as homeownership can help a qualified debt adviser to ensure that a debt management plan is the best option for you.
  4. If switching to a new debt management plan makes sense they’ll quickly forward the paperwork that you need to begin your new debt plan.

Will My Creditors Object If I Switch?

There’s usually no reason for your creditors to object to you switching debt management plans provided that:

  1. You’re not being charged new set-up fees that mean your creditors go unpaid for a while.
  2. The transition takes place relatively quickly so that payment delays don’t occur.
  3. The new debt management plan is set up fairly and professionally.
  4. The new monthly fees being charged aren’t excessively high.

Assuming that all of these factors are in place there should be little disruption to you or to your creditors.

Can We Help You To Switch Your Debt Management Plan?

Our debt management partners have a lot of experience in helping people to switch their DMP. Some of the benefits that they can offer you include:

  • No plan set-up fees.
  • Normally can match or beat your current monthly fee.
  • Quick plan set-up.
  • All their advisers are professionally qualified.
  • You’ll have a named friendly contact managing your plan (not a call-centre).
  • Payments made quickly to your creditors.

If you deserve a better quality of service, get in touch. Switching your debt management plan might be the best decision you’ve made in a long time.

Our friendly advisers can guide you through the process professionally and promptly, so contact us today.