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Debt Management Terms & Conditions


1. Definition of Terms

You - Our client, the person entering this agreement (and partner where any of the debts are in joint names).

Us - Debt Advice Link Limited - Registered Office: DEB House, 19 Middlewoods Way Wharncliffe Business Park, Barnsley, S71 3HR. Authorised and regulated by the Financial Conduct Authority Number 620639. Data Protection Registration Number Z1420045.

Creditors - Any and all of your unsecured creditors whose details You will provide to Us in accordance with section 3.

Debt Management Plan - A plan of repayments produced by Us in accordance with section 4.2.

Period - The period during which the Debt Management Plan is in operation.

Setup Fee - Equivalent to three month's payments. These are charged to You by Us in six equal monthly instalments starting from your first payment.

Monthly Fee - The monthly management fee payable for our Debt Management Plan . This amount is equal to 17.5% subject to a minimum of £38 and a maximum of £75.

Fees - The Setup and Monthly fees to be paid by You to Us in accordance with the Debt Management Plan.

2. Agreement

2.1 - You request Us and we agree to provide You with a debt counselling advisory and adjusting service in accordance with these terms and conditions. You authorise Us to negotiate on your behalf with your creditors. This agreement shall continue until final repayment of the creditors is made in accordance with the Debt Management Plan, unless it should have been terminated beforehand in accordance with section 6.

2.2 - This Agreement will start once You confirm your acceptance of these terms either by telephone or by returning the necessary forms of authority.

3. Your Responsibilities

3.1 - You will provide to Us on request with information relating to your finances. This will include but will not be limited to details of your income and expenditure, your Creditors and any agreements You have with them, any loans or mortgages You have, your dependants and any judgements made against You or any other enforcement action being taken against You.

3.2 - You will sign any necessary forms of authority or any other documents so that we may negotiate with your Creditors on your behalf.

3.3 - You will pass copies of all correspondence from your Creditors to Us and keep Us informed of any dealings You have with any Creditors, whether we are negotiating with them or not. Once the Debt Management Plan has been agreed, You will not make any expenditure over and above your reasonable living expenses as calculated in the Debt Management Plan. You will not use your credit cards nor incur further debts.

3.4 - You will consult with Us in relation to your Debt Management Plan of repayments and in relation to any alterations to it or reviews of it. Your payments to Us will need to be amended to reflect any reasonable changes, which your circumstances dictate. You will make payments to Us under and in accordance with the Debt Management Plan promptly and without any deductions.

3.5 - On occasion your Creditors may not provide Us with balances of your accounts due to their own company procedures. If these circumstances arise then You will obtain this information for Us and supply Us accordingly.

3.6 - We cannot be held responsible for any legal action taken against You by your Creditors as a result of fraudulent or incorrect information provided by You at the time of acquiring a loan, HP agreement, credit card or any other form of credit.

3.7 - Non-contact from You will not be considered cancellation of the agreement. If any funds are owing to You then written confirmation will be required to release funds owing to You in accordance with section 6 of this agreement.

3.8 - If You do not maintain regular payments we will suspend any action and payments on your account. Your Creditors may have to be informed that payments are not being maintained. This may result in your Creditors continuing legal action against You for which we cannot be held responsible.

3.9 - You remain responsible for continuing to pay any secured loans, mortgages or Hire Purchase agreements and all household bills (including insurances)

4. Our Responsibilities

4.1 - We will review your finances, covering your income, expenditure, debts, and assets. These must include all debts secured on property or goods, which we will take into consideration, but cannot negotiate reduced payments on. We will calculate your disposable income, based on reasonable living expenses.

4.2 - In consultation with You, we will produce a Debt Management Plan by which You can pay off your creditors out of your disposable income at rates You can afford. The Debt Management Plan will let You make monthly payments to Us and will take account of your Creditors and of our Fees. It will not take account of any matters You have not told Us about in accordance with section 3. It will also take account of the differing requirements of your different Creditors, if there is more than one.

4.3 - We will negotiate with your Creditors and attempt to agree repayment terms with them of the amounts outstanding. In doing so we shall use the Debt Management Plan and we shall ensure that the periodic payments that we agree with your Creditors on your behalf do not exceed your disposable income (less our fee) as calculated by Us for the same period.

4.4 - We shall attempt to agree with your Creditors, where appropriate, that they freeze or reduce their interest charges and that they suspend or withdraw enforcement proceedings issued in connection with your agreements with them. In rare instances County Court proceedings may still be actioned against You. In these cases we will assist in completion of all relevant paperwork as required. We cannot guarantee to stop legal action by your creditors.

4.5 - For a monthly DMP we shall make payments to your Creditors within 5 working days of each monthly payment from You to Us. If, for any reason, we are unable to distribute monies to your Creditors within five working days from your payment clearing we will inform you of the delay and the reason for the delay. We will also inform your Creditors of the delay as soon as reasonably practical and within five working days from your payment clearing.

4.6 - The payments made to your Creditors will be reflected on the statements You will receive from them. A full breakdown of all payments we have made can be obtained on request.

4.7 - Should your circumstances or any other relevant matter change during the Period, we shall, in consultation with You and your Creditors, review the Debt Management Plan and if necessary shall make changes to it in agreement with You and with any Creditors concerned.

4.8 - From time to time your Creditors will request an update of your financial situation. We will contact You to review your current financial circumstances and update your Debt Management Plan accordingly. To aid this process we request that payslips are regularly forwarded to Us for review.

4.9 - All payments to Us will be made into our Debt Advice Link client account. This account is separate to our own business accounts and funds held for distribution to your creditors will be retained for that purpose only. No interest will be payable to You on funds that we hold. At all times funds held for distribution to your Creditors will be classed as client monies.

4.10 - During the negotiation process some creditors may continue to charge interest and other recovery charges. We cannot always prevent these charges being levied. These will however be paid off as part of your Debt Management Plan.

4.11 - We can only provide advice on the services that we offer

4.12 - The company takes any complaint regarding its practices very seriously. Any complaints should be sent in writing to the Compliance Officer who will respond to correspondence within 5 working days.

5. How we will be paid

5.1 - A Setup Fee (equivalent to 3 month's payments in total) will be proportionally retained from your initial six month's payment(s) to your plan. Although monies will be distributed to your creditors from the outset of your plan this may cause you to go into arrears with your creditors.

5.2 - Thereafter a monthly fee equal to 17.5% of your monthly agreed disposable income will be charged, subject to a minimum fee of £38 and a maximum of £75.

5.3 - You agree for Us to securely hold your debit card details and agree that should You not make your regular standing order payment, we have authority to process payment using the details you have agreed for us to hold. This permission does not permit variation in the amount you have authorised us to process in accordance with the DMP.

5.4 - If no payment is received from You for two monthly payments or over, we will reserve the right to terminate the agreement in accordance with paragraph 6.3 (i)

5.5 - If this agreement is ended in accordance with section 6, we will return any undistributed funds by cheque after having deducted the above fees and You will not have to pay Us any more money. This will be made within 5 business days of receiving written confirmation in order to allow Us time to process all receipts and payments on your account

6. Termination of agreement

6.1 - If for any reason You wish to cancel we offer a seven working day cooling-off period from the date of this letter in which we offer a full refund of any fees which we have taken.

6.2 - After the seven day cooling off period; You may end this agreement if the fees in this schedule differ significantly to the information you have received prior to receiving this paperwork and be entitled to a full refund of any fees taken. You may also end this agreement by giving Us four weeks notice in writing. Lack of contact from You will not be considered cancellation.

6.3 - We may end this agreement by giving You four weeks notice in writing if any one of the following things happens:

6.3 - (i) - You breach this agreement and do not remedy the breach within seven days of our bringing the breach to your attention;

6.3 - (ii) - A bankruptcy petition is issued against you;

6.3 - (iii) - You enter into an Individual Voluntary Arrangement / Trust Deed;

6.3 - (iv) - Where the information provided to Us is knowingly incorrect;

6.3 - (v) - The information provided by You at the time of acquiring a loan (HP agreement, credit cards or any other form of credit) is deemed incorrect or fraudulent by any creditor; or

6.3 - (vi) - If we are affected by Force Majeure.

6.4 - We will use all reasonable endeavours to refund to you any monies that we are unable to distribute to your Creditors if your account with Us becomes inactive (You stop paying your monthly payment)

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