Will My DMP Provider Know I Took Out a Loan? Really Worried About the Consequences

YourLad97

Hi everyone,

I’ve posted something similar before.

My fear is that my DMP provider or one of the creditors checks my credit file randomly and finds out.

I’m currently on a Debt Management Plan (DMP) and recently found myself in a really difficult situation. I had to take out an extra loan to help my retired parents — it wasn’t a decision I made lightly, but they’re struggling financially and needed urgent help. They’ll be paying the loan off themselves through my account, but technically the loan is in my name.

Now I’m panicking. Will my DMP provider find out about this loan? If they do, what are the likely consequences?

I didn’t take the loan for myself, and I’m not using the money for anything other than helping my parents, but I know DMPs are based on being open and honest about your financial situation. I’m scared this could jeopardize the whole plan.

I’m especially worried they might add interest back retrospectively, or that creditors could even take action like sending bailiffs. I don’t know how serious this kind of thing is in the eyes of the DMP provider, but I’m really anxious about what could happen now.

Has anyone been through something like this, or know how strict DMP providers are when something like this happens? I’d honestly appreciate any advice or reassurance — I just want to make things right and avoid getting into even deeper trouble.

Thanks in advance.

MEM62

Oh dear.  You were clearly not in a position to help your parents and they should not have allowed you to place yourself in this position to relieve themselves of their own financial issues.  They are adults and need to sort out their own mess.  All you can do now is deal with it if it ever comes to light.  One positive is that you are unlikely to have bailiffs turning up on your doorstep as there is a legal process that precedes that.       

Hoenir

YourLad97 said:

I didn’t take the loan for myself, and I’m not using the money for anything other than helping my parents, but I know DMPs are based on being open and honest about your financial situation. 

Were you? 

mjm3346

No one should be lending to you if you are on a DMP - if you didn't declare the DMP when applying that's fraud - when it comes to light during the routine management of the DMP or a creditor wants to update the info they hold then there are likely to be consequences. 

sourcrates

A debt management plan is an informal arrangement and there are no requirements on you to disclose it to anyone.

Your provider, is, I`m assuming Stepchange?

They have neither the time nor the resources to go looking at random credit files to catch you out, the same applies to creditors, you are seriously overthinking this.

Whilst taking out new credit would be frowned upon, an explanation of the circumstances is all that would be required to make this a non event.

The worst that could happen is Stepchange would cancel the DMP, in which case you manage the thing yourself, or go to PayPlan or vice versa, its no biggie, and where you got the idea of bailiffs knocking on your door from, that clearly is just too much late night telly to blame.

On a scale of 1-10, this barely merits a 1.