1. Introduction
DEMSA was established in 2000 in order to promote good practice in the debt management industry, and to protect the interests of the public and the creditors to whom they owe money.
Debt Management Companies (DMC’s) act on behalf of borrowers to help them clear their debts. They do this by entering into direct negotiations with creditors in order to facilitate the repayment of debts. In return for their services DMC’s may be paid a fee by the borrower.
The Code has been developed, and revised, in consultation with lenders and DMC’s and will be reviewed on a regular basis with input from appropriate consumer organisations. DEMSA is seeking approval of the code from the Office of Fair Trading under its Consumer Code Approval Scheme (CCAS), and in reviewing the Code due consideration has been given to the guidelines provided by the OFT in the “Debt Management Guidelines” document issued by them in December 2001, and subsequently updated in September 2008.
The aim of the Code, and that of DEMSA, is to encourage DMC’s to provide services of the highest standards in which the public and the credit industry can have confidence, and to provide a high level of protection to the consumer.
