Loop Performance Monitoring (LPM) for DDS loops is described. Even though DDS loops have Intentional Bipolar Violations (BPVs), a Loop Coding Violations (LCVs) detection strategy based on further processing of BPVs is described. By monitoring LCVs a local loop terminating device can determine Bit Error Rate (BER).A system is described by which an Office Channel Unit (OCU) can process LCV information to determine signal quality of the signal over the incoming local loop. If the signal quality falls below a certain threshold, the OCU can cut the loop off from the DDS circuit and send control codes into the network.A system is also described where a Network Interface Unit (NIU) with the LPM system communicates incoming LCV information to the OCU using low speed signalling over the simplex path between the transmit and receive pairs. The OCU monitors incoming LCVs as well, and thus has the information necessary to determine bi-directional BER performance.