Debt Management Plan companies are primarily overseen by the Office of Fair Trading and must hold a Consumer Credit Licence.

Holders of a Consumer Credit Licences have to submit an extensive application to the OFT which is then subject to their scrutiny and further questions.

The OFT offers specific guidance to debt management companies about how they should go about their work. An example of this guidance includes the issuance of payments to creditors within five days of the receipt of cleared funds from a client. Another example is the requirement to keep clients informed about developments affecting their debt management plan. Good debt management plan companies are committed to observing the full guidance issued by the OFT to the industry. The OFT themselves undertake visits to authorised businesses to assess their compliance with the Debt Management Guidance.

Many Debt Management Plan companies are also members of either the Debt Resolution Forum or the Debt Managers Standards Association. These Trade Associations impose further quality standards upon their members. Members of both trade associations open themselves up to further onsite audit to ensure continued high standards. Accordingly it can be assumed that members of either Trade Association are committed to handling their business with honour and a determination to provide a quality service.

Debt Management Plan companies should also be registered with the Information Commissioner under the Data Protection Act. This helps to ensure that client data is protected and used properly.

In Autumn 2009 the Government began a consultation process on the possibility of introducing further regulation into the debt advice and debt management plan sectors. Information on their initial findings and direction should be available in early 2010. Three broad options are being considered. Firstly the industry may continue as it currently stands. Secondly an element of self-regulation may become the norm via trade associations such as the Debt Resolution Forum or DEMSA. Thirdly further regulation may be introduced via regulated/approved/statutory debt repayment plans.

We support all efforts to ensure consumers receive appropriate advice and solutions from the debt resolution industry.