Debt Management Plan - New regulation for 2012?

Next year, a new Debt Management Plan can possibly be introduced in the UK.

Ed Davey, the UK consumer minister would assess the need for a new DMP with a meeting with a group of stakeholders that will be taking place in the New Year.

According to the Insolvency Service, the minister will chair the meeting of the working group and this meeting will pave the way for a new plan to determine the standards and practices with regard to debt management.

The Insolvency Service, however, is discussing the issue with the industry stakeholders. The objective of these meetings is to make a common consensus among the industry players in order to establish the industry best practices that can finally improve consistency with respect to materialize the debt related issues between the creditors and the debtors.

The new proposal for DMP has been welcomed by the industry. At the meetings with the representatives of the Insolvency Practitioners Association, the industry stakeholders have expressed their positive feelings towards the new plan and were optimistic that the new plan will resolve several issues positively that the existing DMP fails to address now.

The industry stakeholders are in favor of developing a standard format for DMP that creditors can accept more willingly and will be ready to resolve the issue with the debtors in an amicable manner.

However, some credit providers have expressed their concerns that the protocol should not be so authoritative one and the acceptance of DMP should be at their discretion. The commercial aspect of the debt market should not be discouraged by the new plan.

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