Interesting Developments in the Free Debt Management Sector

It is proving to be a very interesting time on the DMP front with strong rumours once again coming to the fore as to what is going on behind the scenes.

The IMA award winning Adviceuk / Payplan initiative seems to have gone a little quiet with various rumours going around. It is not easy to find any up to date factual information on this - this is the most recent I've found:

http://www.adviceuk.org.uk/sustainab...dvice-project/

The IMA Award winning Citizens Advice online Self Administering Debt Management Plan system is going from strength to strength, with increasing numbers of people successfully doing DMP's themselves, and still more developments in the pipeline.

http://mymoney.nedcab.org.uk/moneyadvice/dmptour.asp

The IMA Award winning Cashflow seems to have gone quiet. After starting the trend for self administered DMP's, the initiative has apparently sadly suffered in the face of stiff, and arguably better, competition.

http://www.cashflow.uk.net/

There is interesting news emerging regarding Stepchange and their 2013 DMP budget trigger figures review looking at them (this is the second time they have reviewed them this year I think).

The Scottish Government have just agreed that the trigger figures from the CFS are to be used for their new, and improved Trust Deeds. The CFS is still massively powerful in all of this, and I can't see why StepChange don't just adopt their trigger figures.

The fee chargers have their protocol for us all to look into.

This is definitely an area to be watched, as things are likely to get increasingly competitive once internal disputes within the sector resolve. I am hoping to have some more concrete information regarding Cashflow within the next week.

[Hungry Hound]

Re: Interesting Developments in the Free Debt Management Sector

good news, 3 less headaches for anyone having hard times

[labman]

Re: Interesting Developments in the Free Debt Management Sector

UPDATE


As anticipated, there has been a significant development since posting a few days ago. The evidence of what I am being told from very reliable sources is backed up by tweets from NEDCAB (North East Derbyshire CAB). After much discussion and negotiation I understand that the National Association of Citizens' Advice Bureaux have now (late yesterday) granted NEDCAB an official licence for their online debt remedy and advice tool Mymoneynedcab.

At first, this may not seem to be that important. However it will be hugely significant as not only does it bring the official backing of the National Logo etc... to NEDCAB, it means that their systems can now be taken up by all other CAB branches with their individual bureau name on the site, for example, Mymoneyleicestercab, and all the letter heads etc will have the individual CABs name on them unique to any individual bureau

The potential for a nationally backed site is also open for consideration, along with possible discussion with the Money Advice Trust (who do Cashflow and, more importantly produce the figures for the Common Financial Statement). The Money Advice Trust are in the process of re-funding face to face debt advice for another 3 years, and may well be asking for a digital system as a condition - my understanding from information I'm being given is there are no others under development, and the rivals' expensive initiatives are struggling -ie- those from Payplan and StepChange.

It may seem a small step if and when this development is actually announced publicly, but it could be the start of one of the biggest challenges the debt advice sector has ever seen. The reaction of the other agencies such as Payplan and StepChange will be very interesting indeed, as we have the solid making here of a much needed, real genuine FREE debt advice tool for the benefit of all. Both PP and SC have a certain amount of controversy regarding their funding sources, and the pressure these sources may bring on those organisations to encourage clients to take a particular path, or for the organisation itself to act in a particular way.

NEDCAB have fought hard to get this far and there is a new "Change Over" section already completed, and ready to switch online, though this may go out to public testing first.

I think most of us believe strongly in free, independent, totally impartial advice. The detractors have been monitoring developments very closely and tried to play the keep quiet card for months, hoping things will go away. They have not gone away; they have got stronger, while the detractors' attempts and initiatives have struggled, leaving them with a very significant problem on their hands now.

Very interesting times indeed continue to face this sector, and LB would be well advised (and I'm sure will) to keep its finger very much on the pulse.

For those struggling to understand what I'm getting at here, you may need to understand the way in which CAB works. Each individual CAB is a separate charity in itself, as well as being part of the huge charity, the National Association of Citizens' Advice Bureaux. This means there will be lots of new charities flooding onto the free self managed debt advice scene, with a very high quality product already at their disposal, in addition to other work they already do. Alongside all these, there may be another major national player (NACAB) involved directly in a way it has not been previously, and possibly with a direct feed into the CFS and the trigger figures via the MAT.

My personal concern with this is if StepChange and Payplan suffer in the way that seems likely, as people use the switch facility to switch from managed to self-managed DMP's, those who either want a self manged DMP, or need a DMP to be self managed as they don't have the capacity to manage it themselves, there may not be the FREE capacity there is currently, even if the provision is slightly flawed. Taking the next logical step in this, if that provision is restricted, vulnerable people lacking a degree of capacity may end up in a worse position than they are currently. Thus while there is much good and excitement in the developments, there is also, in my opinion, but this is only opinion, a danger to those potentially in most need.

[jon1965]

Re: Interesting Developments in the Free Debt Management Sector

Yes indeed , good IMPARTIAL debt management advice is needed. The issue seems to me is that too many organisations have interests in promoting IVA's and unaffordable DMP's . There are also too many debt advisors that will tell punters to just accept the CCJ or the amount claimed where they are totally wrong.

There are many very vulnerable debtors out there that in reality need face to face advice