DMP companies are overseen by the Office of Fair Trading and must hold a Consumer Credit Licence – ”so what?” you might say. They are not regulated to operate IVAs or act in bankruptcy proceedings as only Insolvency Practitioners are qualified to do so.
DMP companies are quite happy to collect the monthly sum being paid by the debtor, and the creditor banks are quite happy to collect their payment because it means they do not need to formally write off the debt – but this may not be the best solution for the debtor.
DMPs are very common. There are in excess of 200,000 live cases at the moment.
