Key information
We provide free debt advice and will only charge a fee when you opt for one of our debt solutions. The fees for the services we provide are different depending on which debt solution we provide.
All fees will be explained in detail and discussed prior to commencement of any service or debt repayment plan.
Debt Management Plan Fees
Our debt management plans are handled through National Debt Relief. We do not charge a set up fee for your debt management plan, which means your payments will start going towards to your debts/creditors straight away.
For managing your plan we will deduct a monthly management fee from your payment. Our monthly management fee is charged at £25 per month plus £2 per creditor (but not exceeding £60 per month).
The monthly management fee covers the ongoing work involved in setting up and keeping your debt management plan running smoothly. This includes:
- Reviewing your draft payment programme
- Figuring out the new repayment proposals
- Preparing your financial statement
- Talking to your creditors - renegotiating your monthly debt payments
- Making the agreed payments to each of your creditors
- Answering phone calls and letters from your creditors
- Creating the detailed payment statement you will receive every quarter
- Carrying out a review of your circumstances every six months (or more often, if necessary).
Your fees also cover a personal case manager who will be responsible for making sure your plan runs smoothly. If it looks like you cannot afford your monthly payments any more, we can renegotiate with your creditors - they may agree to accept smaller payments if it looks like the best way of bringing your debt management plan to a successful conclusion.
Our Debt Management Plans are provided by our debt management company National Debt Relief who are licensed to carry out these activities.
All monies held on your behalf will be kept in an account and will be used solely for
- Payments to your creditors
- Payments of our fees
We will distribute payments to your creditors within five working days of receipt of cleared funds.
Any Debt added to the plan after the commencement of your agreement will incur a single fee of £25 per debt/account. This allows us to reassess your payments and where necessary negotiate terms with your creditors.
IVA Fees
All our IVAs are processed by our sister company McCambridge Duffy Insolvency Practitioners.
Fees incurred for Individual Voluntary Arrangements are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominees fees relating to assistance given to prepare your proposal and Supervisor fees which relate to the ongoing monitoring of your IVA. Fees are drawn from your monthly contribution or other assets which form part of your proposal. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.
Upfront Fees
We do not charge any upfront fees in our IVAs. Payments are only made if and when you IVA is agreed by your creditors. If for any reason whatsoever your IVA is not accepted by your creditors you will have nothing to pay. We will also help to find you an appropriate alternative.
The fees payable in an IVA come from your monthly payment. Your monthly payment will be a figure you can afford. This money all goes into your personal client account and is then distributed to creditors as defined in the proposal. Our fees are also paid out of the same account as agreed with your creditors who set our fees at the beginning of the arrangement.
The fees are defined as Nominee and Supervisor Fees.
Nominees fee
This is a fixed fee that will cover the work that goes into setting up your IVA:
- Creating your IVA proposal. This is the document which must be approved by enough of your creditors for your IVA to start. It defines the proposed terms of the IVA: how much you would pay, what each creditor would receive, etc.
- Setting up the creditors meeting. This is when your creditors will formally approve your IVA proposal, reject it, or request changes to it.
- Assessing any suggested changes. If any creditors have requested changes to your IVA proposal, your IP will advise you on whether you should accept those changes - or consider a different approach to your debt problems.
Your first few monthly payments (from 3 - 5 monthly payments) will go towards paying the nominees fee before your creditors receive any money.
Supervisors fees
The supervisors fees will cover the ongoing supervision and maintenance of your IVA all the way through. A typical IVA lasts for five years. This fee covers the costs of
- Your Relationship Manager who will deal with any day-to-day issues that arise, ensuring your IVA runs smoothly.
- Your Insolvency Practitioner (IP) who will carry out regular reviews of your IVA and address any more serious issues that come up - if, for instance, your financial situation worsens, and you need your IP to arrange an IVA variation (a legally binding change to the terms of your IVA, designed to help you bring the IVA to a successful conclusion).
Again, these fees are set and agreed by your creditors and come out of your monthly payments. You will not have to pay any more than what you can afford. This fee is generally 15% of the overall repayments and is based on your completion of the IVA.
Note: Keeping up with your monthly payments in an IVA is vital - if you fail to, your IVA may fail, leaving you liable for the remaining balance and any costs already incurred. If you do experience any difficulties with your IVA payments please contact your case supervisor as soon as possible.
Our IVAs are provided by our Insolvency Practice, McCambridge Duffy who are licensed to carry out Insolvency activities.
An example of how IVA fees are charged and what these would be...
A client owing £30,000 that are recommended an IVA as their best solution.
The client can afford £230 per month to offer to their creditors.
The example shows the fees charged but you should keep in mind that every single IVA case is different and dependent upon your individual circumstances. You will be provided with copy of your proposed fees prior to your meeting of creditors where them will be scrutinised and voted upon by your creditors.
Fees for other services
We mainly provide IVAs and Debt Management Plans but we can provide other services. Any fees for other services will be discussed prior to commencement.
A breakdown of typical payments and fees on an IVA: |
|
|---|---|
| Nominee's fee | £1,150 |
| Supervisor's fee | £1,898 |
| Supervisor's costs * | £65 |
| Typical monthly repayments (x60 months) | £230 |
| Total paid by borrower (including fees mentioned above) | £13,800 |
| Total unsecured debt written off on completion | £19,313 (65%) |
| * average costs that are based on registration and insurance costs | |
The example shows the fees charged but you should keep in mind that every single IVA case is different and dependent upon your individual circumstances. You will be provided with copy of your proposed fees prior to your meeting of creditors where them will be scrutinised and voted upon by your creditors.
Cancellation Policy
Debt Management Plan
You have a right to cancel the agreement at any time as set out in our Terms and Conditions of Business included in our information pack. In addition, you are entitled to a cooling off period of fourteen days which starts from the date we receive your signed Authority to Act form or the first payment (whichever is sooner). If you cancel your plan in writing during this period we will refund any fees already paid that are cleared funds. Note that upon cancellation your creditors may discontinue any reduced or frozen interest charges, agreed under the debt management plan.
IVA
An IVA can be cancelled at anytime before the IVA agreement commences. An IVA is deemed to have commenced upon acceptance of your proposal by creditors.
After this stage it cannot be cancelled. It will only terminate where you are in breach of the terms of the agreement, for example; where you miss agreed payments as set out in the arrangement.
