Discovering Debt Relief with a Personal Debt Management Plan

Debt Management Plans (DMPs) are much in news reports at present. Certain adverse issues with the sector made the biggest headlines. As with any industry a few bad apples can give the barrel a bad name. In Britain the Office of Fair Trading (OFT) has already taken actions to handle the bad apples. Quite possibly the most significant infractions it has discovered took place in the areas of marketing and charging behavior. In September 2010 it issued a warning to 129 debt management companies and followed that up with high profile enforcement measures against the worst offenders. The OFT intends to release revised debt management direction in June 2011. It is not clear at this point if the government plans to introduce any legislation to manage DMPs. Yet the Ministry of Justice has released a consultation document concerning the future of DMPs. Three types of regulation are being offered. These are to marginally improve regulation by the OFT, to introduce sector self control with voluntary codes of practice and/or to create a new solution i.e. a statutory DMP. Since the DMP is the predominant personal insolvency solution in the UK at the present time, it is perplexing that the government seems to shrink from the duty of legislating in this area. So what is the current condition of national debt management advice and how can it bring relief to debtors? Read more [...]