Help! I’m on a DMP and my debt has been transferred!

posted by in Living with debt

Benefit changes

What happens if my debt changes hands?

Everything is going smoothly on your debt management plan (DMP).

Then, out of the blue, you get a letter from a debt collection agency informing you that they’ve legally taken over one of your debts from the original creditor.

Basically, you now owe the money to the new organisation and not the original creditor.

What do you do now? And how does this affect your DMP?

Don’t worry, it’s simple!

First off, don’t worry or panic. Over the course of your DMP your debts could be transferred a few times. It’s just part of the normal debt collection process. Creditors often use outside agencies to collect debts. Sometimes they’ll sell your debt on to another organisation. Legally the new owner of your debt has to write to you and tell you about this.

What you need to do

You should tell us as soon as your receive confirmation that a debt has been transferred or sold. As your DMP provider we need to know when a debt’s been transferred, just so we can make sure your money is going to the right place.

There’s three ways to contact us. Of course you can give us a call on the usual number, or you can email us.

But even better, you can update the creditor details yourself. By using our online DMP service you can update transferred debts without having to call. It’s simple, quick and you can do it in your own time. You can read more about online DMP and how it works in this article.

What will happen with my interest and charges?

Sometimes if a debt is passed to a new owner they will freeze the interest and charges. Many clients have told us that by proving they’re paying all they can into their DMP the new owner of the debt has stopped additional fees (however this happens on a case by case basis). Either way, the best thing you can do is to keep up with your DMP payment.

Transfer time

Having your debts transferred shouldn’t cause you any sleepless nights; just let us know the details and get on with your life. We’ll take care of your repayments through your DMP, whoever owns the debt.


Matthew worked as an IVA drafter prior to working in social media. In a former life he wrote scripts for Eastenders, Emmerdale and Hollyoaks. He has 3 chickens, 2 dogs and a rabbit.

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Tags Living with debt
  • Kasra Chehrazy

    Hi there.
    I was a Natwest bank customer since 2000. I moved to Iran in 2007 and was paying all my credit card installments trough online banking. Since April 2013 my account was blocked due to International banking sanctions on Iran and I was not able to pay anything online. Recently I received some letter from Gabot financial the my account was sold to them. They asked me to make an offer for payments.
    As I had lots problems after blocking my bank account and I still need to have a visa card to send money to my child in the UK, can I asked them to provide me with a visa credit or debit card? Also, I wonder if the transfer of my debt to the collecting agency can affect my credit record.
    looking forward to your reply,
    Dr Kasra Chehrazy

    • moneyaware

      Hi Kasra,

      Thanks for getting in touch.

      It’d be best to get in touch with Natwest about the credit or
      visa card. It may be that the existing card you have still works.

      If not, they’ll be able to answer any questions you have about

      Debts are usually transferred to a debt collection agency if
      you’ve missed payments. If you’ve missed payments towards a debt, this could impact your credit file.

      You can read more about this here:

      I hope this helps but if you have any questions please let us

      Kind regards,


      • Kasra Chehrazy

        Hi Jen,
        Thanks for your reply.
        I contacted Natwest in April 2013 and mentioned my concern about blocking my account due to banking sanctions on Iran, and the problem that it makes for my credit card payment. It seems they didn’t care.
        I’ll try to contact them for more explanation.
        Best regards,