The FOS and debt management all plans and Ideas

The FOS and debt management all plans and Ideas 

Regardless of the fact that there continues to be much bad press circulating focusing on DMP specialists, this is not reflected by a considerable number of complaints. A condemnation of a debt management plan would be included in the category of "debt adjusting". 101 debt adjusting complaints have been logged in the previous three months. Other financial service areas have been on the receiving end of much larger complaint numbers, as an example mortgages (2383) and car insurance (1814).

The steadfast sector of the DMP industry is working hard to lower the quantity of complaints and has formed a couple of trade associations which only accepts members that are dedicated to driving up service levels and lowering the quantity of complaints. Sadly there remain to be many poor providers in the UK debt management plan industry, as a result it is expected that complaints will continue to trend upwards in the future.



Individuals contemplating signing up to a DMP, or simply sourcing some debt management plan help, would be well advised to narrow down their sources of advice to the larger free-to-client agencies or private advisors which have become members of the newly formed trade associations (Debt Resolution Forum and DEMSA). Both associations have member lists on their websites.

Those complaints highlighted in the Financial Ombudsman Service periodical are of real interest. In the first example a gentleman complained that he had been led to believe his debts would be fully accounted for after he opted for a DMP, something which did not transpire. FOS attempted to gather evidence which showed the client had been misinformed by the debt management plan company but actually discovered this was not true. Phone recordings showed that this guarantee was not actually made and the marketing material of the debt management plan provider made no suggestion that such results could be expected. As a result the claim was rejected.

The next case involves a lady who received a cold-call from a debt management plan firm (always a foreboding sign in itself) claiming that her debts would be written-off once she opened a DMP with the firm. When FOS explored the situation it was discovered that the debt management plan company had been dishonest in relation to their claims and predatory in relation to their marketing campaign. Due to the fact that the debt management plan company's complaints handling process was so bad FOS ordered them to give the claimant an additional quantity alongside the return of her fees.

If you have been subjected to bad debt management plan advice or services you should complain directly to the debt management plan provider. Should they not deal with the matter to your satisfaction you can then take the matter to FOS.



Debt Management Plan Forum is a website dedicated to providing a wide-ranging number of information sources in connection to a DMP or other debt solutions. The debt management plan firms represented on the site are drawn from firms that have shown a commitment to high standards by joining the trade association the Debt Resolution Forum.
Source: The FOS and debt management plans 
http://www.financebusinessarticles.com

 Written by: charliemaine