Rate: Rate Answer     1 of 10     2 of 10     3 of 10     4 of 10     5 of 10     6 of 10     7 of 10     8 of 10     9 of 10     10 of 10

 |  Add Comment  |  Report This

Essentially a DPM is when you group all your debts under one umbrella, a company then repays those debts for you either as a lump sum or as a series of payments based on payments you make to them. The advantage of a DPM is that it gives you one single payment to make a month instead of worrying about making (and potentially missing) mutiple payments.

Stopping your DPM is possible but that would depend on the arrangement you have with the company you arranged your DMP with. Some companies require that you fulfill a minimum repayment as they are taking a percentage of what you repay. Some have other ways of ensuring that they are reimbursed for the service that they provide you.

Stopping your DPM will not remove any unpaid debts that you still owe and there may be legal implications for you if you cease payments to the DPM especially if it is court ordered or mandated.

You need to contact your DPM representative and ask him or her what your position is. If the problem is with a fraudulent credit provider contact legal representation.

This site has general FAQs about DPMs (United Kingdom/GB):

http://www.cccs.co.uk/fa ... t_plan.aspx

or you can look here (USA):

http://www.ftc.gov/bcp/e ... /cre38.shtm