Debt Management Terms of Business
An Initial Fee will be taken; this will be your first and second monthly payments with a minimum fee of £200.00 and a maximum of £1,000. Where the monthly payment is greater than £500.00 an amount of £1,000 will be taken over a period of two months and any remaining fees will be distributed from your payments. The initial fee will be taken over a maximum period of two months. You will miss a maximum of two payments to your creditors and may go into arrears or further arrears.
In addition to this, 17.5% of the monthly payments received thereafter, subject to a minimum of £25 and a maximum of £100, will also be retained as our management fee. No charges will be made in addition to the agreed monthly payments and therefore you will not be asked to pay any amount over and above the agreed monthly payment.
Any monies we hold on your behalf will be held in the Client Account.
We will distribute the Monthly Repayments to the Creditors within 5 working days of being in receipt of the whole of the corresponding Monthly Payment in Cleared Funds from you.
You must not ignore correspondence or other contact you receive from the Creditors or those acting on behalf of the Creditors.
The Creditors are not obliged to accept the terms of the Payment Programme and if they do not, it may take longer for you to repay the Creditors in full. Repaying your debts by non contractual instalments may increase the total sum to be repaid over a longer term.
You should be aware that entering into the Payment Programme may adversely affect your credit rating. You may have difficulty in obtaining further credit in the short and medium term. Credit reference agencies retain records for a period of six years. Information held by credit reference agencies may affect your well being in other ways; for example, details may be requested by potential employers.
You must continue to meet your other commitments (such as mortgage payments, rent and utility bill payments) during the Term. You must also continue to meet payment commitments to accounts which are not included on your debt management plan.
If any of the Creditors have commenced legal proceedings to recover the sums owed to them, there is no guarantee that they will be suspended or withdrawn upon entering into their Agreement.
There is nothing to prevent any of the Creditors from commencing or pursuing legal proceedings (such as default notices or other litigation) during the Term.
You have the right to withdraw from and cancel your Agreement if at any time it becomes apparent that fees charged will increase by more than 25% of the original estimated fee.
You have the right to receive a full refund of fees paid if you terminate your debt management plan within 7 days after signing the agreement in accordance with the Consumer Protection (Distance Selling) Regulations 2000.
The Next Step
All debt solutions should be very carefully considered; we will always provide you with the best advice to ensure you get a soft landing away from the burden of debt. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREEPHONE ADVICE LINE 0800 085 1825 to have a full consultation with our specially trained advisors.
The Insolvency Service has produced a guide: In Debt - Dealing with your creditors, to support those who find themselves in financial difficulty during the recession.
Financial Information
All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to set up and maintain your plan - all fees will be outlined during your consultation. For further information on fees, please see the FAQ section of the different solutions available. Retained payment may place you further into arrears. The Debt Advisor complies with the Consumer Credit Act and you have a right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.
All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to set up your plan and maintain it - all fees will be outlined during your consultation. For further information on fees, please see the FAQ section of the different solutions available. Retained payment may place you further into arrears. The Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term