The Financial Ombudsman Service (FOS) provides an independent service committed to assisting debt management companies function according to best practice. As well as travelling up and down the country to meet companies face-to-face, they issue a periodic journal that comprises of particular figures relating to complaints and patterns of behaviour. They also provide case studies they have been involved in.
Despite continued negative press about debt management plan providers in newspapers and magazines, the quantity of debt management plan complaints heard by the FOS is actually very small. A complaint about a debt management plan would be included in the category of "debt adjusting". 101 debt adjusting complaints have been counted in the past quarter. Compared to the number of individuals unhappy with other areas of financial services, including car insurance (1814) and mortgages (2383), the DMP advisors compare favourably.
The steadfast segment of the debt management plan industry is committed to reducing the number of complaints and has setup two trade associations which only accepts members that are committed to driving up standards and decreasing the number of complaints. It's just a shame that not all providers are so dedicated to the quality of service they provide, and consequently complaints are anticipated to grow in the future.
Those struggling with their finances who are thinking about starting a DMP, or simply seeking some debt management plan help, would do well to restrict their advice provider to the larger free-to-client companies or private suppliers which have become members of the newly formed trade associations (Debt Resolution Forum and DEMSA). It is possible to determine whether particular DMP companies are members by looking at the member lists on their websites.
Those complaints highlighted in the Financial Ombudsman Service newsletter are fascinating. In the first example an individual complained that he had expected his debts to be fully accounted for after he opted for a DMP, something which did not transpire. FOS attempted to gather evidence to prove the customer had been misinformed by the DMP company but in actual fact discovered this was not true. Phone recordings proved such a pledge had not been made and the marketing documents of the DMP provider made no suggestion that such a conclusion should be anticipated. The complaint was therefore rejected.
In the following example, a claimant was cold-called by a debt management plan company who promised that, once she started a DMP with them, all of her debts would be written off. When FOS investigated the issue it was discovered that the DMP firm had been misleading with regards to their promise and predatory in relation to their marketing 'strategy'. Since the DMP firm's complaints handling process was so unsatisfactory FOS forced them to give the debtor an added sum in addition to the return of her fees.
If you have received bad DMP advice or services the best thing you can do is complain directly to the debt management plan provider. If they do not resolve the matter satisfactorily you can then take the matter to FOS.
The steadfast segment of the debt management plan industry is committed to reducing the number of complaints and has setup two trade associations which only accepts members that are committed to driving up standards and decreasing the number of complaints. It's just a shame that not all providers are so dedicated to the quality of service they provide, and consequently complaints are anticipated to grow in the future.
Those struggling with their finances who are thinking about starting a DMP, or simply seeking some debt management plan help, would do well to restrict their advice provider to the larger free-to-client companies or private suppliers which have become members of the newly formed trade associations (Debt Resolution Forum and DEMSA). It is possible to determine whether particular DMP companies are members by looking at the member lists on their websites.
Those complaints highlighted in the Financial Ombudsman Service newsletter are fascinating. In the first example an individual complained that he had expected his debts to be fully accounted for after he opted for a DMP, something which did not transpire. FOS attempted to gather evidence to prove the customer had been misinformed by the DMP company but in actual fact discovered this was not true. Phone recordings proved such a pledge had not been made and the marketing documents of the DMP provider made no suggestion that such a conclusion should be anticipated. The complaint was therefore rejected.
In the following example, a claimant was cold-called by a debt management plan company who promised that, once she started a DMP with them, all of her debts would be written off. When FOS investigated the issue it was discovered that the DMP firm had been misleading with regards to their promise and predatory in relation to their marketing 'strategy'. Since the DMP firm's complaints handling process was so unsatisfactory FOS forced them to give the debtor an added sum in addition to the return of her fees.
If you have received bad DMP advice or services the best thing you can do is complain directly to the debt management plan provider. If they do not resolve the matter satisfactorily 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 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.
