HBOS has pulled out of a deal with TDX Group to manage its debt management plans (DMPs), citing operational difficulties.

The deal between the two firms involves TDX managing DMPs on behalf of HBOS via its DMX platform, which offers creditors reduced operational costs and appropriate treatment of individual customers.

However, debtor representatives who work with TDX to provide the DMP service to HBOS have now been told to deal directly with the lender, after HBOS revealed it was experiencing "serious operational difficulties."

A joint statement issued by HBOS and TDX said: "Since the launch of HBOS on the DMX platform we have made significant progress in establishing a new method of managing debt management plans.

"Over the first couple of months there have been a number of learnings with some elements not working as well as we would have liked due to the complexity of the processes across the industry. As HBOS and TDX Group are committed to delivering excellent customer service, the decision has been taken to temporarily suspend the use of DMX for HBOS customers to allow us time to review these findings and make any necessary changes."

The statement added: "At this stage we are unable to confirm how long the service will be suspended, but the intention is to resume the service once we have implemented any improvements required and are confident that it will provide the expected level of service to HBOS customers."