Fee-Charging Debt Management Companies
Over the last 5 years, there has been a significant increase in the number of organisations that are establishing themselves as "Debt Management Companies".
Many claim "free debt advice", but often charge for their debt management services.
Often the fees are taken as a percentage of the monthly payment made by the debtor and in some cases, there is also a non-refundable deposit to pay, which is considered a "set-up cost".
It cannot be deemed unreasonable for these debt management companies to charge for such a service, as there is indisputably a high volume of administration required for each arrangement.
However, the quality of the service provided by such fee-charging companies has come under constant criticism for many reasons:
- "Debt advisers" are often revealed to be too sales-orientated and will attempt to convince the debtor that they really need the service, even when a more realistic solution is easily available;
- There have been numerous cases of delays in transferring funds to creditors causing further interest and charges;
- Debtors have reported their frustration at being unable to contact their case workers once the arrangement has been set-up. In some cases this can be a period of months.
More Information on Debt Management
- Debt Management Plans
- Debt Management Case Studies
- Compare Debt Management Companies
- Questions about Debt Management
- How much can I save with Payplan?
For immediate and free debt advice please call Payplan free on 0800 917 7823 or use our Debt Calculator to submit your debt problem online.




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