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If you are struggling with your DMP get advice and help here
By Vangaurder
#2252
Morning. I am a year into a debt management plan with CCCS and I want to change to another company because their service is not good enough.

Since my DMP started my finances have got worse - we have moved to a bigger house because of a new baby.

Anyone know what it will be like when I change DMP companies, will the phone calls and letters start again? Also if I reduce the amount I pay each month into the DMP are they likely to start charging interest and fees again?

Does anyone have any experience of this?
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By Andrew Graveson
#2255
Hi Vangaurder,

People change DMP companies frequently. If properly managed there should be no outbreak of contact from creditors. The key to this will be to avoid a DMP company with extended upfront fees which result in a long period of non-payment to creditors.

Every creditor has their own procedure for judging and responding to DMP proposals so it's hard to say whether any will start charging interest again if your payment goes down. The key to this though isn't how much you're paying; it's whether the creditors believe that you're paying as much as you can reasonably afford. The amount people can afford changes all of the time, not least in times of economic turbulence as we are currently experiencing. Again if properly managed creditors will normally accept a reduction of payments from someone where they believe there has been a genuine change in circumstances.

We've assisted quite a few people in this way over the years and it hasn't caused major issues.
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By Steve Jackson
#2260
Hello Vangaurder

There is certainly no reason why you should not change to a different DMP company if you do not think you are getting good service. As Andrew has said, you need to watch out for how much the new company will charge as an instruction fee to take you on. A charge as long as it is not too high would not be unreasonable as they will have to review all of your circumstances with you and make a new proposal to your creditors.

After the review, if your disposable income and therefore payments to creditors need to reduce your creditors will ultimately have to accept this. Its important to realise that some of your creditors may start adding interest again in the short term. However, they should stop this when regular payments come through.
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By Hayden
#2336
Hi Vangaurder

I have not had a similar experiance as I am in an IVA. However, if you are not happy with your current DMP provider my advice is change. There is no reason for you to stick with a company who you do not think is giving you good service. By the way, why are you thinking of changing in the first place? Is it because the CCCS have not managed to get interest and charges frozen or something else?