With a Debt Management Plan (DMP), a significant proportion of the work we do for you takes place at the start of the arrangement. This involves the initial consultation, examination of your income and expenditure, and liaison with your creditors to reach an agreeable and affordable repayment plan.
With this in mind, we retain as a fee, the first monthly payment and 90% of the second monthly payment to cover the cost of arranging and implementing your DMP. It's worth noting that the initial DMP fees can temporarily put you further in arrears as almost all of your first two payments will actually go towards covering the administration and management of your arrangement.
Once in the plan, you will be allocated a dedicated Customer Service Officer (CSO) who will be your main contact. Your CSO is fully trained in Debt Management and he/she is on hand to offer any assistance you may need in dealing with your creditors or making your monthly payment. Your CSO will take on the responsibility of dealing directly with your creditors - handling any calls from or to them, responding to any letters they may send and liaising with you as frequently as necessary.
Your CSO will be on hand to advise you on any concerns you may have. Every six months, he/she will carry out a review to ensure you are still able to afford the monthly payment and to discuss any changes to your lifestyle or circumstances which may require an amendment to your plan. To keep you up to date with your progress, a quarterly statement will also be sent to you which should be filed safely with your paperwork.
Unless agreed otherwise with you, to cover the cost of this
service, we will take a gross fee equal to 17.625% (subject to a
minimum fee of £30.00) from each monthly payment made by you into
your DMP. The remaining amount will then be distributed as
agreed, to your creditors within 5 working days of receipt of the
cleared funds into our Clients Account.
The clients account is separate to our own business accounts and funds held for distribution to your creditors will be retained for that purpose only. This account does not accrue interest. At all times funds held for distribution to your Creditors will be classed as client monies
Now that you know the costs of a DMP, why not complete our online contact form now and one of our advisors will call you back to see if a debt management plan is the right option for you: