Information Your Debt Management Plan Provider Must Provide
When you set up a debt management plan, or DMP, you’ll have the choice to either do it yourself or by using the services of a specialised DMP provider.
If you choose the latter, then there are certain rules laid out by the Financial Conduct Authority (FCA) that the DMP provider must follow when setting up your plan. A key part of these rules is to do with transparency and the information that you have to be provided with while the DMP is arranged.
In this guide:
Before You Sign the Contract
Before you sign on the dotted line and agree to the plan as arranged by the DMP provider, all of the relevant terms and conditions must be made absolutely clear so that you know exactly what you are signing up to.
As well as this general requirement, FCA regulations state that you must be informed of the following (formally and in writing):
- The exact nature of the service being provided
- The length of the plan, and any relevant dates regarding payments
- The cost of, or at least an estimate of the cost of, the service being provided
- The nature of the allocation of your monthly payments among your creditors, including how much will be taken by the DMP provider
- Any other costs that will be incurred and the dates they’ll have to be paid