Service Details and Terms
It is important that you are aware of the following when taking on any debt solution:
- All possible solutions should be considered to ensure you make an informed choice.
- Fees will be charged if a solution is taken. This will be explained clearly in your consultation and agreement documents.
- Stopping payments to your creditors may place you into further arrears.
- It is likely that your ability to get credit will be affected.
- As per the Consumer Credit Act you have a 14 day cooling off period in which to cancel your plan.
- We will advise you on all of the above and help you understand the pros and cons of the solutions you have open to you.
>> Click here to see the Terms and Conditions for IVAs
>> Click here to see the Terms and Conditions for DMPs
IVA fees
- The first 2 payments you make (based on your affordable monthly income) are fees for the work we do preparing your IVA case. This involves the production of a comprehensive statement of affairs, the gathering of all key documentation required and extensive analysis of the documentation to ensure that an IVA is both acceptable to creditors and sustainable for you. This can take time, but is vital to secure the best chance of the IVA being successful.
- 95% of the cases that we prepare when presented to creditors are accepted. This is because we take great care to ensure that the proposals are realistic, fair and reasonable to both you and your creditors.
- There are further fees charged for the work done by the insolvency practitioner who deals with your creditors and manages your IVA over its term, but these are taken out of the monthly payments you have agreed to pay into the IVA. As such your creditors bear the costs of the IVA, provided you make all your payments as agreed
DMP fees
- You may be able to get help with an informal debt management programme for free. However, most companies who provide these services will make a charge. The DMP provider will work for you, not your creditors and will charge an ‘initial fee’ at the start of the DMP and a ‘monthly fee’ for each month you are in the plan.
- The initial fee covers the production of a financial statement and proposals for your creditors along with the initial negotiation with creditors by phone, letter and email to set up your agreements for reduced payments. The monthly fee covers the ongoing communication with both creditors and yourselves, continuing active negotiation to reduce interest and charges wherever possible, distribution of your payments, creditor harassment complaints and 6 monthly reviews of your plan.
- The 'initial fee' will be the first two payments you make. Note - token payments are made to your creditors from these payments so that good initial contact is made with them.
- The monthly fee is 15% of your monthly payment with a minimum of £25 and a maximum of £100.
