Debt management plan providers sometimes go bust or have their licence taken away by the Financial Conduct Authority. If this happens to your provider, this won’t cancel your debts, so you’ll need to:
▪️make a new plan for paying off your debts
▪️try to get back any money the provider owes you
You can also contact your nearest Citizens Advice to get more detailed help.
Making a new plan for your debts
First, cancel any direct debit or standing orders to your debt management plan provider. These might have been cancelled automatically, but it’s worth checking. Your provider will have stopped making payments to your creditors. Contact everyone you owe money to and tell them your debt management plan provider has closed. Ask them for some time to sort out your finances – many creditors will give you at least a month without having to pay them anything.
Next you need to check your options for dealing with your remaining debts. You might want to find a new debt management plan or handle your debts yourself. This could be a good time to get advice on what to do next.
Don’t accept straight away if a provider contacts you directly
Your old provider might have given your details to another provider that wants to gain your business. You don’t have to sign up with them, and they are likely to charge you fees if you accept their offer.
If you want to choose another debt management plan provider you might be better off finding one that won’t charge you fees</a>.
Contact your nearest Citizens Advice if you’re not sure about an agreement you’ve been offered.
Getting back money your provider owes you
Unfortunately, if your provider has been holding some of your money, you might not be able to get it all back.
If your provider is bankrupt, outside managers called administrators will handle its money while it closes down. You need to make sure the administrators know that the provider owes you money. Even if they can’t pay you back completely you might get part of what you’re owed.
Your provider might have the details of its administrators on its website. If you can’t find them, call the Financial Consumers Helpline on 0800 111 6768. They can tell you who the administrators are.