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DMP agency help!!

Just found out my cousin is using a DMP company and that she is paying a hefty fee too. She pays £50 a month to them, £25 goes to servicing her debt, the other £25 goes to them. She has only been with them a month or two from what I have found out. Can she ditch this extortion robbing DMP company and go to one that offers the same service for free/ do her own DMP, or has she tied herself in with them. When she went with them, she did not know there was charities that could help her to set up a DMP for free.
2026 Goals
Live below £14000
Emergency Fund 1 £3k/£1002
Emergency Fund 2 £200 (works a bit like Premium Bonds)
Premium Bonds £1k/£700
Stocks & Shares Isa £5k/£1651
SIPP £9200/200

Comments

  • 10past6
    10past6 Posts: 4,962 Forumite
    Look at my signature, and use the link in RED and contact them for further advice ;)
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
  • Penny2myName
    Penny2myName Posts: 1,614 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I know who she can use, but what I need to know is , having signed with the DMP company, is she now in a committed contract, or can she ditch them to go with a reputable firm like CCCS or Payplan?
    2026 Goals
    Live below £14000
    Emergency Fund 1 £3k/£1002
    Emergency Fund 2 £200 (works a bit like Premium Bonds)
    Premium Bonds £1k/£700
    Stocks & Shares Isa £5k/£1651
    SIPP £9200/200
  • RAS
    RAS Posts: 36,521 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Hi

    First off , she needs to read her contract and see what that says.

    Secondly, if there are any restrictions, she may well have a mis-seling case if she was not told that she could get the job done for free by a debt charity.
    If you've have not made a mistake, you've made nothing
  • Penny2myName
    Penny2myName Posts: 1,614 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Thanks for that, will let my mum know and she can inform cousin's mum.
    2026 Goals
    Live below £14000
    Emergency Fund 1 £3k/£1002
    Emergency Fund 2 £200 (works a bit like Premium Bonds)
    Premium Bonds £1k/£700
    Stocks & Shares Isa £5k/£1651
    SIPP £9200/200
This discussion has been closed.
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