Abacus Finance, a ClearDebt Group company has achieved the distinction of Debt Management Protocol official compliance.
The specialist debt management plan company in the Cleardebt Group, Abacus Finance, is one of the first companies to have won the right to display the new Debt Management Plan Protocol badge.
This makes us one of a small group that have committed to high standards and have been inspected by an independent body to ensure we have achieved them.
I am especially proud of this achievement because I, along with representatives of other debt management trade associations, creditor bodies and consumer representatives was one of the people who have spent the last couple of years making this happen. It is a real achievement and will lead, I believe, to continuing efforts to raise standards, grow trust and develop even better debt management products in the future.
What does the DMP Protocol mean for consumers?
It means you start repaying your creditors from month one of your DMP. No more upfront fees from debt management plan protocol compliant companies like Abacus. It does cost to set-up a plan, but we will be taking this fee as a portion of your first six month’s contributions – after which we charge a standard percentage of your contributions for the life of your DMP.
- It means no hidden or extra fees. Abacus have never charged these, but, for example, companies that display the DMP protocol badge will no longer be able to charge an annual review fee.
- It means that, when we tell creditors that you are entering a debt management plan with us that they should give you 30 days’ breathing space (at the very least).
- It means we will tell you about other free sources of advice that are available. That’s fine by us: Research done by our trade association (DRF) shows that roughly a fifth of our clients come to us having taken advice from the free-to-client sector: We believe, when it comes to dealing with debt, you really do get what you pay for.
- It means your case will be regularly reviewed and you will be given accurate information about your outstanding balances.
- It means that we will try to create debt debt management plans that last ten years or less and, when – working with you – we can’t, that creditors (and you) will clearly understand why.
But, actually, it doesn’t mean that much will change for us (or our customers) at all: ClearDebt and Abacus have, as members of the Debt Resolution Forum (DRF), always subscribed to high standards – the important distinction the protocol provides is that you, the consumer, can now clearly distinguish inspected, trusted companies from those that aren’t.
And Abacus – Cleardebt’s debt management company is one that is!
Read the Insolvency Service official announcement of the Debt Management Protocol including comments from the Chairman of the Debt Resolution Forum and CEO of ClearDebt, David Mond.
Our DMP Protocol Compliant fees:
- We receive, as a set-up fee, the amount of the client’s first two payments – split into six equal monthly payments and taken in instalments from month one to six.
- We receive a monthly fee from the first payment onwards as a percentage of what remains after the set-up fee instalment has been paid (from month seven onwards this is a percentage of the entire payment).