Will creditors contact me during a DMP?
Creditors can continue to call or write to you during your DMP, but in practice you can expect contact from them to reduce if you stick to the payments you’ve agreed.
Contact from creditors is more likely:
- In the early stages of your DMP
- If you miss any payments during your DMP
- At points when creditors want to check if anything has changed, typically every six or twelve months.
Creditors have to send you some letters by law, and these will continue if you’re on a DMP. Examples include annual statements for some types of debt or default notices.
If a creditor is still contacting you a lot, or pressuring you to increase your payments or pay them extra outside the plan, let us know.
Interest and charges on a debt management plan
At the start of your plan, we’ll always ask your creditors to stop or reduce any further interest and charges.
Industry guidance to lenders says they should always ‘consider’ stopping or reducing interest for people who are in financial difficulties and trying to sort them out. But they are not legally obliged to stop interest, and a DMP can’t force creditors to do this,
However, in practice most will agree to stop or reduce interest and charges. Some will do this as soon as they know about the DMP, while others may wait a bit longer. It’s rare for creditors to continue charging interest in the long term during a DMP.
Debts are often passed on to debt collection companies while you’re on a DMP interest and charges will normally be stopped if this happens.
Will a DMP affect my credit file?
A DMP will impact your credit file because you’re paying less to your debts than the amount stated in the agreements you signed with your lenders. This means arrears are building up each month, and this will be recorded in the payment history shown in your credit report.
Creditors may also add a marker to your credit file showing that your payments are being made through a DMP.
It’s also likely that at least some of your accounts will default while you’re on a DMP, and this will be recorded on your credit file too.