Financial Ombudsman Service and DMP complaints

The Financial Ombudsman Service (FOS) provides an independent service dedicated to ensuring debt management advisors function based on best practice. Their service mainly comprises journeying across the UK to talk about topical issues with business owners; as well as producing a periodic publication identifying their conclusions. They also write-up sample cases they have delivered. Although there is much bad press circulating regarding DMP specialists, this has not been mirrored by a considerable quantity of complainants. A complaint about a debt management plan falls under the category of "debt adjusting". 101 debt adjusting complaints have been counted in the previous three months. Compared to the number of individuals dissatisfied with separate sectors of financial services, including car insurance (1814) and mortgages (2383), the DMP companies look particularly good in comparison. The conscientious quota of the debt management plan industry is committed to reducing the quantity of complaints and has created 2 trade associations which only accepts members that are dedicated to increasing service levels and lowering the quantity of complaints. Sadly there remain to be many cowboys in the UK DMP industry, so it's likely that complaints will continue to trend upwards in the future. Individuals thinking about signing up to a DMP, or simply sourcing some debt management plan advice, would be wise to limit their advice provider to the more established free-to-client providers or private suppliers that have become members of the newly formed trade associations (Debt Resolution Forum and DEMSA). You can find out which providers are members as the details will be listed on the trade associations' websites. The example complaints highlighted in the FOS periodical are particularly insightful. In the first example a man complained that he had expected his debts to be fully accounted for after he signed up for a DMP, however, this was not the case. The Financial Ombudsman Service looked for evidence to prove the customer had been led astray by the debt management plan firm but in actual fact discovered this was not true. Phone recordings indicated such a promise had not been made and the promotional literature of the DMP company made no promise that such results could be anticipated. As such the claim was thrown out. The next case centres around a lady who got a cold-call from a debt management plan firm (always a terrible sign in itself) stating that her debts would be written-off once she began a DMP with the firm. The company's promises and marketing were discovered to be inappropriate and misleading by FOS and the company was unable to come up with evidence to the contrary. Because the debt management plan provider's complaints handling system was so poor FOS ordered them to pay the debtor an extra amount alongside the return of her fees. If you've been on the receiving end of ill advised DMP advice or services you are advised to use the complaints process of the DMP firm. Should they not resolve the matter satisfactorily you should then contact the Financial Ombudsman Service.