Can I change my DMP company?
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People call us for several reasons: it may be that they realise they can no longer afford to manage their debt, they know their situation is about to change so they are planning ahead, or they simply decide that they can no longer ignore their debts and they must deal with them. However for some people they have already gone through this trigger point and have successfully set up a Debt Management Plan (DMP). These people may have reached a certain point in their plan and have decided that they are not happy with the service that they are receiving, feel it is time to change or realise that they are being charged a fee for the current service they are receiving.
People that come to us after being with another debt management company often have a lot of questions so hopefully I can try and answer a lot of them.
Can I change my DMP?
The simple answer is yes. Just because you are already in a DMP it doesn’t mean you have to stick with that plan that you are in. Many DMP providers will require you to give them notice to your cancellation but that shouldn’t stop you.
How do I change my DMP?
If you decide that you are not happy with your debt management company and you want to change, you need to do your research and find a company that you are happy with and one that you feel has your best interests at heart. You should then call them and go through the initial process of setting up a plan with them.
When should I stop paying into my current plan?
For this next part, everyone has different opinions as to what you should do, at Payplan we would say that you should stop paying into your DMP as soon as you can and set up payments direct with your creditors whilst your DMP is being set up. The reason why we say this is if you are currently paying a fee to the company then this should be going to your creditors. You can therefore split the fee between your creditors while your new plan is being set up and then once it is they will start receiving more funds from you.
If you would like to speak to one of our debt specialists about a DMP then please call 0800 316 1833.
Comments 15
Hello Victoria,
The DMPs that we manage are free. We do not charge our clients fees for the management of the DMP; we distribute 100% of your monthly contributions to your creditors. We receive a ‘fair share’ donation of the funds back from creditors. This is detailed further on the website: https://www.payplan.com/about-us/how-we-are-funded/
If you are in a DMP and are currently paying fees it may take longer to pay back the entirety of your debt. If you would like to speak to someone about setting up a DMP with us you can do so on 0800 316 1833 or fill in an enquiry form at http://www.payplan.com/ and someone will call you back.
Kind regards,
Samuel
Hi Sarah,
As all the debt management companies are different, it is hard to say how your current one will deal with the PPI refund. Payplan are able to provide a Debt Management Plan (DMP) for you and guide you on potential claims for PPI refunds as well as give you advice on the best way to use those possible funds to pay off your debts if that is the course of action that you wish to pursue.
If you would like some further advice or assistance, please do call our helpline number: 0800 316 1833 .
Kind regards,
Samuel
Hi Lauren,
Thank you for your query.
You would not be able to have more than one Debt Management Plan (DMP) as it relies on full disclosure of your circumstances and income and expenditure to all of your creditors. You can, however, switch your DMP provider to us. More information can be found on our website: http://www.payplan.com/debt-management-plans.php.
I hope that helps, but should you require any further information you can e-mail me directly on: samuel.jepson@payplan.com .
Warm regards,
Samuel
Hi, I currently have a dmp with another company which has been for nearly a year now. If I was to change it, to yourselves for example, would you guys get all the information and change everything over? Do you have any hidden charges? Do you charge a monthly fee? this is what is worrying me about changing over.
Thank you
Michelle
Hi Michelle,
Thank you for your email and I’m sure we will be able to help you. Please give us a call on our free phone number: 0800 316 1833 . We would need to assess your individual circumstances to ensure we offer you as many options as we can.
Please do not hesitate to contact us with any other questions you have.
Tracey
Hi I’ve been on a dmp plan for 6 years and they have put up their management fee from £30 to £46 pound since my last review. I feel that this is a lot and as I’m older now I realise that paying this fee is ridiculous as all the years paying it I could of had it going towards my creditors. My debt has been reduced from 00 to just under £5000 but after researching and reading I would like to change my dmp and hopefully change to yours. Is it too late to change over my plan to another company as I have been with my for a long time?
Not at all. At the time you felt you were doing the right thing as you wanted to repay your debt – it is jut unfortunate that a lot of your money has gone on fees.It is far better to use one of the non fee-charging companies as this way every penny goes to your creditors which reduces the debt far more quickly. However, we are not born with hindsight! It is not a legally binding arrangement so you can move at any time.I would strongly suggest you contact Payplan on 0800 2802816 as calls are free to this number even from mobiles. A trained adviser will be able to give you tailored advice. Many people swap debt management providers and it is not difficult to do – it can be a seamless transfer.
Thank you for getting back to me, I will call tomorrow.
I have been with my dmp for a few years now and want to change to a no fee plan but I don’t have the paperwork to my creditorsn o more as it’s been so long could I still change if you could get all my details from my original plan please
Of course we can help. Your current provider should provide you with all the details of your accounts so you just need to ask them for a breakdown. We could then discuss things with you and get an updated budget to see what you both can afford as it is a joint plan. As we charge no fees and your current plan is affordable the creditors would get more money as there would be no fee going out each month. We would need to go through a revised financial statement though to see it is really the best advice for you. There is nothing to lose by trying anyway as the service is free, confidential and there is no obligation. I can email you to arrange a time to discuss further or you can ring Payplan directly to discuss. Just let me know. My email is jane.clack@payplan.com
Also I forgot to add it’s a joint account
Thank you
Hi ,
I’m on a free dmp at the moment and I failed to keep up my payments due to some personal circumstances and I think that my plan will now be closed. Can I take a new plan with you my situation has stabilised and can make payments again. Thanks in advance
Hello
If you get in touch with the company and explain the situation and that you are now in a position to make regular payments that will repay your debt in a reasonable period of time, then I am sure it can be looked at again.
Hi,
I am in an existing dmp with yourselves and have been for about 10 years but unfortunately i have got into difficulty again due to a relationship break up. Can i add creditors into my plan or is bankruptcy the best option ?
Thank you
It depends – we can add creditors to your plan but would need to give you the best advice for a solution when we do this. It will be the best advice for your circumtances so please contact your case officers.
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