Hello all Dont get on here very often but been having a bit of a look. This old post caught my eye. National Debtline is an excellent organisation and the best website in the sector. But: they send DMP's to both Stepchange and Payplan on a cab rank principle (and get a % of the fair share paid), they do provide DRO's and they refer IVA's to a panel of IVA providers they have seleected (and get a share of the nominee fee for doing so). My final tip to readers of this and other forums - don't get too paranoid! Your'e really not that important to most creditors and there is not some mass coverup and/or conspiracy directed against you! Nick

Delighted that MAS has pledged 3 years funding for face to face debt advice. I believe in a mixed economy of both free to consumer and commercial, fee charging services; we could be heading for the pre 1993 situation where there was no commercial providers if the FCA plans for commercial providers (regulation & fees) come to pass. And they will! How many commercial firms will still be in operation in 2 years time is an interesting question.

Thanks Wintry, hadn't spotted Mirror article. Now I'm no longer working for a fee charging debt management firm ( as of 6th Nov) I can say what I please! The real challenge for debt management firms is not this protocol (most of the 22 firms who are protocol approved haven't yet actually started offering protocol compliant DMPs but are instead offering their usual DMP fee structure eg 2x monthly DI as set up fee) but the FCA regulation from 1st April 2014. Take a look what is proposed by FCA in relation to fees and then add in FCA consultation on fees for 2014/15. The fee for debt management firms is proposed to be £10,000 a year; a set fee regardless of size of firm. Commercial debt manages are bailing out of the market as we speak. Although the FCA draft rules are largely only the OFT DMGs made into FCA rules with some new prudential rules plus a bit of the DMP protocol it's how FCA expect firms to demonstrate compliance that will be a bridge too far for many/most debt managers. As one firm said to me last week, it's clear that the FCA hope to remove the majority of debt managers from the market. If the draft rules and fees are implemented they will succeed. You know what to do!

Looks like I may go back to my roots and work as a debt adviser in a CABx.

Hi WintryI think I may be returning to one of the free, not for profit providers, lets just say that! Of course I'll miss you x

Interesting thread. I assumed it was common knowledge that PP owned a PPI claims firm and also sold customers PPI on their DMPs. Nothing wrong with either activity and indeed both make v good sense in my view. If my old pal Wintry is looking in, just to let you know I may be heading back to the free sector!

I note the "Citizens Advice Bureaux in England and Wales dealt with 7,824 new debt problems every working day during the year ending March 2013." In my time in CAB we recorded a problem for each of the clients debts and from memory that equated to about 10 per client on average so this equates to 782 clients or about 2 per main bureau per day. I assume these figures use the same methodology.

Its certainly a pretty fundermental change if it does in fact happen. I think the realistic view has been taken that if people are going to use a commercial debt managment provider they should at least be directed to a protocol compliant one rather than trusting to luck via a google search etc. I think you'll see even more creditors than now signposting to both free and fee in future. The times they are a changin as someone once said!

Just a quick update on the Insolvency Service DMP Protocol. Firms have been advised that they need to apply to the IS protocol approvals sub committee in the next few weeks (assuming they have passed their independent audit of protocol compliance) so that the commiteee can confirm them or not as protocol compliant DMP providers when the Protocol goes live on 1st October 2013, I assume with a fanfare from the Consumer Affairs Minister whose initiative this ultimately is. Firms wil be able to display a badge showing they are protocol complaint and their contact details will be on the debt section of MAS website. The latest version of the protocol is at http://www.insolvencydirect.bis.gov.uk/insolvencyprofessionandlegislation/policychange/policychange.htm I think the benfits to consumers are likely to be very significant, not least because of the obligations the protocol places on creditors.

I know that lots of IVA providers are doing very low value IVA's ie £100 or less. Its beyond me how they can afford to do it at that level of DI given the costs involved in IVA's. Similarly, the level of debts to be considered for an IVA has reduced - Ive seen some at £5k. Given the debt writeoff in an IVA, it seems that clients are getting a good deal with these low value/low DI cases.

Both SC and Payplan have the same model but I understand that many creditors pay back different (lower) rates to Payplan as a FSC.

Just catching up on whats being going on at CAG and saw your post wintry - I agree with you entirely! on a seperate issue Ive just done a search on CAG for any mention of the demise of Smooth Debt Management last week. As there is none I will share http://www.insolvencynews.com/article/15697/corporate/ips-instructed-about-debt-management-firm I understand the smooth DMP book of c2500 customers on DMP's has now been sold to MoneyExpert.Expect to see a lot more fee chargers exiting the market via either this route or less distressed sales shall we say.

Hi Sequenci. CAG is a bit like my local pub - I dont get to pop in as much as I'd like but when I do I enjoy it!

A dishonest debtor or indeed adviser can simply make up a I&E and reduced their repayments if they wish to take that risk and lie. Fact is creditors have no moral or business reason to automitcally freeze interest in every case surely. Delighted to have provoked a debate!

Hi Wintry, My understanding is that Stepchange use a method of pro rata calculation based on age of debt rather than size - its one of those things I did know for sure once but old age means I cant remember now how they do it.