If you’ve got a debt management plan (DMP), you may find your creditors are still contacting you or asking for payment, even though you’re making payments they’ve agreed to.
There are a number of reasons why creditors might still contact you if you’re in a DMP:
To send you regular account statements
Under the rules in the Consumer Credit Act 1974, your creditors will normally have to keep sending you annual statements as well as arrears and default notices in a set format. This happens even when you’re in a DMP. Don’t worry, as it doesn’t mean there is a problem with your DMP. However, if you receive other letters demanding payment or threatening court action, you’ll need to contact your DMP provider for advice.
You haven’t had your DMP for very long
Some creditors may chase you for payment if you haven’t yet made many payments on your DMP. You should tell your creditors that you’re paying into the DMP that they’ve agreed to and ask if they’ll stop sending you reminders.
They’re chasing you for debts not in your DMP
Remember that a DMP won’t pay off all your debts. Your priority debts, such as mortgage arrears or court fines, can’t go into a DMP. You need to make arrangements to pay these debts first and still need to deal with these creditors yourself.
The creditor has refused to deal with the DMP provider
Sometimes a creditor will refuse to deal with a DMP provider. This could be because the creditor doesn’t want to accept the reduced payments or sometimes it could be because they’ve objected to you using a fee-charging provider, which would mean there’s less money to pay the debts you have with them. If the creditor doesn’t want to deal with the DMP provider, they can still take action to recover the money you owe, which may include taking you to court.
If this applies to you, ask the creditor why they’re not willing to co-operate with the DMP. You can try to negotiate with them yourself to see if they’ll change their minds. However, they’re not legally obliged to do so, so you may need to keep dealing with this creditor separately.
The creditor has made a mistake
The creditor may simply have made a mistake or not fully updated their records. If you think this is the case, ask the creditor why they’re still contacting you, remind them that they’ve agreed to the DMP and ask them to update their records.
The creditor is harassing you
While a creditor is still allowed to contact you while you’re in a DMP, if one is doing any of the following, it may count as harassment: