Why Your Debt Management Company Should Be A Member Of DEMSA

Established in 2000, DEMSA or Debt Managers Standard Association is an organisation that monitors, regulates and maintains the debt management industry standards. These standards help promote excellence in the industry, as well as help protect both the lender and the consumer involved in any kind of financial transactions or dealings.

In case of a financial difficulty or if a borrower struggles with repayment of his debt, he can approach a debt management company to get some help. These companies help a consumer to clear uncleared payments and debt through negotiations with the lending party, thereby facilitating the repayment of debt. The first thing to check here would be whether the company is a member of DEMSA or not. As a member of DEMSA, a debt management company is obliged to treat consumers with respect and compassion, and provide solutions that are transparent, responsible, and beneficial to the parties involved.

If the debt management company is a member of DEMSA, it ensures:

      The company will adhere to transparent and honest advertising, which gives out the right message to consumers.
      A comprehensible and clear pre-contractual agreement is provided to the consumers, giving them full information and ensuring complete transparency.
      Following the code of conduct laid down by DEMSA, the contract terms of the debt management company are fair and in the interest of the borrower and lender.
      The debt management company complies with the OFT’s Debt Management Guidelines, which approve only those codes that have been proven effective in preserving and promoting the consumers’ interests.
      Protection of consumers’ prepayments and deposits is assured.
      The debt management company assists borrowers to provide an accurate and suitable debt repayment plan or proposal that is in the interest of both the consumer and the lender.
      In case of a complaint regarding the handling of a case by a debt management company, a consumer needs to communicate with the respective company. However, if the client is dissatisfied with the solution provided, they can refer it to DEMSA if that matter falls within the areas covered by its code of conduct. DEMSA’s code of conduct comprises of the right to refer complaints to the Financial Ombudsman Service.

DEMSA has established code of conduct along with set procedures for handling complaints and all members of DEMSA i.e. the debt management companies are bound to comply with them. DEMSA’s code of conduct aims to ensure that debt management companies offer high standard and reliable services to the borrowers.

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