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Hello all, I think this got lost over the weekend - does anyone have any advice on how I can get them to recognise a SM DMP? I don't really want to return to a DM company but will if I have to
thanks,
X
Originally posted by 2017spark
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Apologies - I did see this over the weekend, but needed to spend time digging up information on this for you, which I have done this morning.
The Lending Code was replaced by The Standards of Lending Practice in 2016 (shortly after I went self managed).
The old Lending Code used to state in section 212 :
212. Personal customers may choose a self-help approach to negotiating debt repayment. Subscribers should ensure that
such proposals are given equal consideration as those presented through a debt adviser.
This made it very clear and straightforward for those of us wishing to move to self-managing our DMPs, but is of absolutely no use to use now
However, it is not quite so clear and straightforward in the new
Standards of Lending Practice. What this states is:
9. Firms should consider freezing or reducing interest and charges when a customer is in financial difficulty.
[CONC 7]
The important bit here is that little 'Conc 7' That relates to the Financial Conduct Authority (FCA) - and I think CONC stands for consumer credit sourcebook (I think!). Anyway, in Conc 7 of the FCA there is a statement as follows:
CONC 7.12.2 A firm must not
(3) refuse to deal with a customer who is developing a repayment plan, a third party who is assisting a customer to develop a repayment plan or a third party who is developing a debt management plan for the customer's debts, unless there is an objectively justifiable reason for doing so
;
[Note: paragraphs 3.9c of DCG and 3.49b of DMG]
AND (and I think this is the important bit for you)
(5) operate a policy:
(a) of only negotiating the freezing of interest and charges on a customer's debts where the lender has an existing arrangement with a person acting on behalf of the customer; or
[Note: paragraph 3.49e of DMG]
So, the important bit there is
paragraph 3.49e of the DMG, which states:
3.49 Examples of potentially unfair or improper business practices include:
e. operating a policy of only entering into negotiations about, and/or
agreeing to freeze, interest and charges, if the consumer has engaged
the services of a specific representative; with whom the creditor has
an arrangement
So - if it were me, I would send them a letter and quote all that bumpf above and let them know you know your rights, even if they are now hidden deeply in the various bits of code with the Standards of Lending Practice. You are entitled to self manage your DMP and they are trying it on.
Pheww.... that took a fair bit of digging to find the relevant bits to make an argument. Not as easy as it was when it was the old Lending Code.

Oh - edited to add that
DMG is The Office of Fair Trading Debt Management Guidance