CCCS DMP - please help!

[Marabou]

Myself and DH have been on separate DMPs with a company that charges a fee. We recently decided to join CCCS instead, as they don't charge fees for their DMPs. I called our current DMP company today to cancel my plan and the advisor I spoke with said the only reason CCCS doesn't charge is because they are creditor-funded and the creditors will get their money back by not freezing the interest and charges on the debt. When I told her that my creditors have already frozen the interest and charges she said they would just re-apply them.

I tried to find more information on this and couldn't so I thought to post this on here in the interim. Is this true?

[VickityBoo]

Well done for taking action on your debts.

We were with the CCCS and had interest basically removed as far as I recall. All payment went to the debt figure. Phone the CCCS and ask them for confirmation.

[applecrumbleandcream]

My friend is currently with CCCS on a DMP and she says they are a registered charity who rely on voluntary contributions from the credit industry.

As you have proved, your creditors have frozen interest and charges, they may in the future re-apply these as a DMP is only an informal agreement with your creditors and they are under no obligation to continue to freeze them (hopefully they will). No DMP company can guarantee they will do this, it just sounds as though they are trying to 'frighten' (use this term loosely) into staying with them . They should be reported really to the OFT, that is disgusting!

[Marabou]

Hello all and many thanks for your replies. Sorry for the late reply!

I cancelled my DMP with the company that charges and they were still warning me against CCCS. This even after I told them I had contacted Consumer Direct, who told me that their advice was inaccurate and told me to also complain to CCCS that this company is "spoiling their name" by spreading incorrect rumours..