NEW PROTECTIONS TO HELP CONSUMERS PAYING FOR DEBT MANAGEMENT ADVICE

8 Feb 2013 01:38 PM

Consumers who pay for advice on managing their debts will now be protected by a new Debt Management Plan (DMP) Protocol, launched by Consumer Affairs Minister Jo Swinson recently.

Under the Protocol, agreed with providers and creditors, consumers will not be charged any fees before signing a contract with a Protocol compliant debt management company. Providers have agreed to spread the recovery of their set up fees, over at least the first six months, making plans more affordable and sustainable.

Companies that sign up to the Protocol will be expected to provide clients with information about other appropriate debt management options including the availability of free debt advice by providers.

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