The rule every creditor must follow — and the rule most DMP firms pretend doesn’t exist.

What Forbearance Actually Means

In FCA regulation, forbearance means that creditors must ease pressure and reduce harm when a customer is struggling.

It’s not optional. It’s not “nice to have.” It’s not “if the adviser feels like it.”

It is a legal requirement.

Forbearance means creditors must:

• reduce payments
• accept token payments
• accept £0 payments
• freeze interest (where appropriate)
• Stop aggressive collection
• stop harassment
• Adjust behaviour for vulnerability
• avoid pushing unsuitable solutions

If a customer is in difficulty, creditors must back off rather than push harder.

Why Forbearance Exists

The FCA created forbearance rules because:

• People fall into hardship
• incomes drop
• health changes
• benefits replace wages
• life events hit
• Vulnerable customers need protection

Forbearance is the safety net that stops creditors from causing more harm.

And here’s the key line:

If someone has Zero Surplus, forbearance is mandatory.

Not optional. Mandatory.

Forbearance and DMPs (The Part the Industry Hides)

This is where the DMP industry gets caught out.

If someone:

• has protected income
• has zero surplus
• is vulnerable
• is disabled
• is long‑term sick
• is on UC LCWRA
• is on PIP or DLA

…then creditors must apply forbearance, not demand payments.

But DMP firms often:

• ignore forbearance
• create a fake surplus
• push long‑term plans
• Take money from protected income
• pressure clients into payments
• Hide the option of £0 arrangements

This is how mis‑selling happens.

This is why DMP Scams exist.

What Proper Forbearance Looks Like

A compliant adviser or creditor must:

• accept £0 or token payments
• freeze interest where appropriate
• stop pressure
• stop threats
• stop chasing
• Adjust communication style
• recognise vulnerability
• avoid long‑term commitments
• avoid unsuitable DMPs

If they don’t, it’s a breach of FCA CONC.

Forbearance in One Sentence

When you’re struggling, creditors must reduce pressure — not increase it — and any DMP that ignores this rule is mis‑sold.