All debt management plan providers are bound to a specific and clearly outlined set of regulations devised by the Financial Conduct Authority which they are legally obliged to abide by. These rules include clear guidelines about the manner in which providers can promote and market their services. If you are not given a clear and comprehensive set of information by a provider about the costs and nature of your prospective debt management plan when you are setting up, then you can launch a complaint against them and seek a refund for any fees you have paid up until the point of cancellation, under the premise of being mis-sold it.
The following page will outline which steps you can take if you believe you have been mis-sold a debt management plan by a provider.
Under official regulations providers are prohibited from claiming the following in their promotions:
- That they can without certainty ensure that your creditors accept your debt management plan proposal.
- That using a debt management plan will ensure that you end up ‘debt free’.
- That your debt will be reduced substantially without making it clear that your creditors are under no obligation to accept your proposal or freeze interest and late charges.
- That they are a charity whilst they are simultaneously profiteering off your situation.
If you were told any of these by your existing provider, then you were mis-sold your debt management plan.
All advertisements that debt management plan providers release must be:
- Truthful and clear
- Informative and do not omit any key information
- Balanced and present the risks of a debt solution.
I’ve been mis-sold a debt management plan; what can I do?
If you have realised that you have been mis-sold a debt management plan before signing the final contract with a provider, then you should simply find a different firm and launch a complaint against the firm.
If you have already set up your debt management plan with a provider who you believe has mis-sold their service to you, then you should simply cancel your agreement and make a formal complaint to the Financial Ombudsman Service.