Article from Insolvency News - Fee charging DMPs more likely to fail?

[Wintry]

Hi

 

Article from Insolvency News

 

http://www.insolvencynews.com/article/14524/corporate/fee-charging-dmps-more-likely-to-fail

 

Could it really be true?

 

Bet the fee chargers wont agree.

 

I would be more likely to go with the Insolvency News article

 

The article also touches on a few other interesting points.

 

Strange though no mention of DIY DMPs, maybe they forgot

[Nick Pearson]

HiThe full MAT report was published today and as ever it reveals a different picture to the press release. The full report also covers DIY DMP's too.If you're in the mood for research, take a look at the DEMSA research published last week at:http://www.demsa.co.uk/demsa-news/grant-thornton-produces-independent-study-into-fee-charging-debt-management-market Eg Researchers found that just 17% of DEMSA members’ annual revenue is sourced from DMP set-up fees, highlighting debt management companies’ interest in the long term sustainability of DMPs.Nick

[Wintry]

HiThe full MAT report was published today and as ever it reveals a different picture to the press release. The full report also covers DIY DMP's too.If you're in the mood for research, take a look at the DEMSA research published last week at:http://www.demsa.co.uk/demsa-news/grant-thornton-produces-independent-study-into-fee-charging-debt-management-market Eg Researchers found that just 17% of DEMSA members’ annual revenue is sourced from DMP set-up fees, highlighting debt management companies’ interest in the long term sustainability of DMPs.Nick

 

Hi Nick, its been a while, but nice to see you back again:)

 

Thanks for the info .I will check it out

 

It is all set to get really interesting my friend, do you agree?

 

The stats game will no doubt go into overdrive on all sides

[Nick Pearson]

Hi Nick, its been a while, but nice to see you back again:)

 

Thanks for the info .I will check it out

 

It is all set to get really interesting my friend, do you agree?

 

The stats game will no doubt go into overdrive on all sides

 

So good to be back! I may not have been posting but Ive been keeping my eye on you all , rest assured.What with the recent DRF research, the DEMSA work and the reports by MAT there are plenty of stats for even the most ardent stats fan.It will be interesting to see the next steps in the DMP protocol. Expect news in the not too distant future.

[Wintry]

So good to be back! I may not have been posting but Ive been keeping my eye on you all , rest assured.What with the recent DRF research, the DEMSA work and the reports by MAT there are plenty of stats for even the most ardent stats fan.It will be interesting to see the next steps in the DMP protocol. Expect news in the not too distant future.

 

Hi Nick

 

Have we behaved ourselves to your liking Nick, some of us can be rascals at times, its true I know, but we mean well.

 

Come on Nick, give us a sneak preview on the protocol, the suspense is getting too much, we are going to find out anyway or perhaps some of us already know:)

[Nick Pearson]

Hi Nick

 

Have we behaved ourselves to your liking Nick, some of us can be rascals at times, its true I know, but we mean well.

 

Come on Nick, give us a sneak preview on the protocol, the suspense is getting too much, we are going to find out anyway or perhaps some of us already know:)

 

I can't give too many details I'm afraid for 2 reasons. Firstly the final draft has not yet gone to the Minister and secondly we have only seen and commented on drafts from the Insolvency Service circulated to us via DEMSA and we were given this ona confidential basis.What is in the public domain is that none of the not for profit charties or for profit/free to consumer companies is willing to sign up to the protocol as it stands. The reasons they give for this (you can ask CA HQ I assume) and the reasons I think this is the case are perhaps at odds. Personally I think that the level of external audit we current undergo as DEMSA members is far more intrusive and probing than many free networks would submit to &/or have the funds to pay for. This auditing is likely to be a key feature of the protocol. Assuming the final draft that I've seen is accepted by the Minister I think it will be a real step forward for consumers.Sorry to be so cloak and dagger but I'm not at liberty to say more.

[Wintry]

I can't give too many details I'm afraid for 2 reasons. Firstly the final draft has not yet gone to the Minister and secondly we have only seen and commented on drafts from the Insolvency Service circulated to us via DEMSA and we were given this ona confidential basis.What is in the public domain is that none of the not for profit charties or for profit/free to consumer companies is willing to sign up to the protocol as it stands. The reasons they give for this (you can ask CA HQ I assume) and the reasons I think this is the case are perhaps at odds. Personally I think that the level of external audit we current undergo as DEMSA members is far more intrusive and probing than many free networks would submit to &/or have the funds to pay for. This auditing is likely to be a key feature of the protocol. Assuming the final draft that I've seen is accepted by the Minister I think it will be a real step forward for consumers.Sorry to be so cloak and dagger but I'm not at liberty to say more.

 

Thanks for that Nick

 

It does seem to be dragging on a bit by the sound of things:)

[Wintry]

I can't give too many details I'm afraid for 2 reasons. Firstly the final draft has not yet gone to the Minister and secondly we have only seen and commented on drafts from the Insolvency Service circulated to us via DEMSA and we were given this ona confidential basis.What is in the public domain is that none of the not for profit charties or for profit/free to consumer companies is willing to sign up to the protocol as it stands. The reasons they give for this (you can ask CA HQ I assume) and the reasons I think this is the case are perhaps at odds. Personally I think that the level of external audit we current undergo as DEMSA members is far more intrusive and probing than many free networks would submit to &/or have the funds to pay for. This auditing is likely to be a key feature of the protocol. Assuming the final draft that I've seen is accepted by the Minister I think it will be a real step forward for consumers.Sorry to be so cloak and dagger but I'm not at liberty to say more.

 

Hi again Nick

 

Have you seen this article?

 

http://www.mirror.co.uk/money/personal-finance/dodgy-debt-management-firms-ripping-1446979

 

It is a fascinating read given some of the things you have put regarding the new protocol, especially the parts in the article that mention Payplan and what John Fairhurst has to say (he's got it right if you ask me)

 

I and quite a few more cant wait to see this new protocol to be honest, do you think we ever will though? after reading the mirror article, well, I am not so sure yer know!

 

It is nearly Christmas and we are still waiting:)

Edited November 25, 2012 by Wintry

[Nick Pearson]

Hi Wintry, yes I did see the Mirror article. I think the BBA website makes interesting reading on this.

 

“Discussing Debt Management Plan protocols at BIS

 

We met with BIS Minister Jo Swinson on Wednesday to discuss the progress of the creditor and debt management industries in agreeing a protocol to improve practices among free and fee-charging debt management providers. Whilst the minister welcomed the commitment displayed by the BBA and the fee-charging providers in producing a workable protocol, she encouraged the free advice sector to overcome its reluctance to participate and for all parties to make further efforts to finalise a protocol that puts the interests of consumers first. The BBA will continue to work with BIS and other stakeholders to achieve the minister's aims”

[Nick Pearson]

Ps, yes I think there will be a protocol and I hope that all providers agree to abide by it. Organisations dealing with customers, some with over 100k customers on DMPs, need the same level of external audit and compliance monitoring that some providers in the sector already submit to. The risk to consumers of firms failing and or using the client account may be slight but consumers deserve protection whoever the provider.

[Wintry]

Ps, yes I think there will be a protocol and I hope that all providers agree to abide by it. Organisations dealing with customers, some with over 100k customers on DMPs, need the same level of external audit and compliance monitoring that some providers in the sector already submit to. The risk to consumers of firms failing and or using the client account may be slight but consumers deserve protection whoever the provider.

 

Hi Nick

 

For some reason Im still up and wide awake instead of lying in bed watching DVDs of the greatest TV detective series of all time - the sorely missed Mr Peter Falk as Lt Columbo.

 

Now I mention Columbo as the way this protocol is going we will probably need someone like him to solve what has happened to it or to actually find it.

 

Its not gonna happen is it Nick?

 

Not this year anyway:)