Many UK debt management companies charge fees for their debt management plans.
Fee-charging debt management companies add their charges to the single monthly payment you make to them under the terms of your debt management plan (DMP).
A standard debt management plan from a fee-charging company could cost you an extra £5,000.
We do not charge any fees for our services. Unlike for-profit debt management companies, we will organise and administer your debt management plan at no cost to yourself and with no hidden fees, so everything you pay goes towards reducing your debts.
Debt management companies – advertising rules
Any fee-charging debt management company in the UK promoting their services as free is breaking strict advertising rules introduced on 1st September 2010.
In the past, some organisations have been guilty of misleading the public, claiming to offer "free" help and advice in their advertising, even though a typical plan from a fee-charging debt management company could cost around £5,000.
The advertising code states that:
- Debt management companies are not allowed to advertise a product or service as "free", "without charge" or similar if the consumer has to pay anything other than unavoidable charges, such as response and delivery costs.
- Financial products must be presented in a way that can be easily understood by the audience, rather than take advantage of consumers’ inexperience.
Debt management companies must also comply with Debt Management Guidance published by the Office of Fair Trading (OFT).
Make sure you never pay for debt help. We provide free, impartial debt help and advice with no hidden charges. Other organisations offering free debt advice include:
If you’re struggling with debts, use our online debt counselling service CCCS Debt Remedy, which provides you with the most appropriate solution to your problem.