Letter to send DCA's as coming out of DMP

[lionman]

hi guys

We have been in a DMP for over 5 years, they have done a bad job and we pay them for it. Times are hard and we can easily do the same job ourselves now and pay the DCA's the same as the drop for us is the same as the DMP fee.

Is there a standard letter to send the DCA or should we just write our own stating we were in a DMP, due to financial problems we are coming out of the DMP to manage it ourselves and payments to you will be the same so please send your details etc?

Cheers

[CleverClogs]

Re: Letter to send DCA's as coming out of DMP

Might it not be wiser to use a free DMP service such as that offered by CCCS?

[Caspar]

Re: Letter to send DCA's as coming out of DMP

Self managed DMP's are perfectly possible and easy enough to manage. It may help you to read this: A guide to self managed DMP's - Reviewing your DMP - Legal Beagles Consumer Forum

In terms of writing to yor creditors it is often best to ensure you have all relevant account details etc... before you stop your current one, then just keep on paying them the same amount they've been getting. Just write to your DMP provider to say you'll be finishing with them.

Be forewarned that some of them show their true colours when you do this and may tell you that you'll hit all sorts of problems. This simply is not true, indeed often a self managed DMP gives you more flexibility and I've known many be very successful.

Good luck, and if you need further help, just post up!

[Gabi]

Re: Letter to send DCA's as coming out of DMP

Hi lionman,
i've been in the same situation. left my dmcompany one month ago, giving them notice of termination - for me it was only 2 weeks notice. you can check what your contract with them says. then I wrote to all of my creditors that I will be doing dmp on my own, sent them new I&E and offer of payments, also saying that from now on DMCompany has got no rights to ast on my behalf as I terminated contract with them. Your creditors might be even happier as they will see you wont be paying charges to dmcompany. after that I decided to contact CCCS (I have got 12 creditors - too much hussle for me)and they set up dmp for me and will be dealing with my creditors.
DMP is an informal agreement so in my opinion you can do it on your own as well as with debt management company.
good luck
Gabi