Debt management plan (dmp) - sustany/dvg GitHub Wiki

Debt-management plan (DMP) is a term used in credit counseling to describe an agreement concluded between a debtor, a credit counseling firm and the debtor�s creditors. Under the DMP, the debtor makes a payment to the counseling firm, which after oversees the distribution of the amount among creditors.�

Credit counseling agencies will negotiate in the name of the debtor with the creditors in order to lower payments and interest rates on a monthly basis in order to allow the debtor to re-take control of their finances in order to repay their debt. The aim of the DMP is to allow debtors who have difficulties to make payments on time to pay a smaller amount per month, in order to be able to pay their creditors.�

DMPs are regulated by the U.S. Federal Trade Commission and different states have the power to regulate DMPs individually in order to protect state citizens from fraud.