DPP or DMP

freshstart2023

Hi all, I am in Scotland. Awaiting defaults and looking to start a DMP or DPP. I appreciate the DPP will give protection but I find a formal plan scarier than an informal plan..can I ask for thoughts on this please? I am a home owner (mortgage) Does the protection of the DPP make it a better option? Thankyou

sourcrates

With a DMP you pretty much run it yourself, it`s informal, you make all the decisions, you decide what and who to pay etc etc.

The DPP is the more formal option, it is a regulated arrangement with legal protection from creditors.

In all other aspects there is no real difference between them, as a homeowner the legal protection would be a plus.

freshstart2023

Thanks Sourcrates, in your experience, is the protection required? If I enter a DMP and keep up agreed repayments, is there still a risk to my home? I guess the appeal of the DMP is the informality and the discretion of it not appearing on a public register. Thanks again 

freshstart2023

Sourcrates, could I also ask when the best time to make an irresponsible lending complaint would be please? I had a virgin credit card which was maxed out and I was paying only the min payment, it had a £7k limit and I was able to obtain a second card from Virgin with a further £7k limit. I have been paying the minimum payment on both for almost 2 years but won’t be able to affoard the interest when the 0% stops (next payment). My plan is to cancel the DD’s shortly and let them default so I can start a DMP. Am I best awaiting the defaults before making a complaint or doing that now? Thankyou 

sourcrates

By far the majority of creditors accept a regular DMP no questions asked.

Any that don`t simply sell there debt to another company, most DMP`s run like clockwork, with very few issues.

When creditors are getting regular payments, there is no need for further action.

Some prefer the added legal protection a DPP affords, but unless you owe a substantial sum of money that could theoretically be recovered from the sale of your home (which is not as simple as it sounds) then a regular arrangement should be fine.

I would crack on with those complaints if I were you.

freshstart2023

Thankyou very much, I will get something typed up…yes I think I will try a DMP rather than DPP. Thankyou