We want your choice of DEBTPLAN Direct™ services to be your best decision in regaining control of your finances. We aim to be completely transparent in all our dealings with you. These Terms of Business explain our obligations to You and yours to Us, so please take time to read them carefully. Particular terms may be added to or changed including to cover other services. Such terms will be brought to your notice at the appropriate time.
The agreement between You and Us is made on the following terms:
1. Definition of terms
‘You’ Means You the person entering this agreement of the Debt Management Plan (and partner where any debts are in joint names).
‘Us’ and ‘We’ means DEBTPLAN Direct™ the trading name for Blue Finance Management Limited, Registered Office: Lonsdale House, 52 Blucher Street, Birmingham, B1 1QU. Licensed under Consumer Credit License Number 594485.
‘Creditors’ any and all of your unsecured creditors of whose details you provide us in accordance with section 3.
‘Debt Management Plan’ a repayment plan produced by Us in accordance with section 4.2.
‘Term’ the period of time during which the Debt Management Plan is active.
‘Fees’ the fees to be paid by You to Us in accordance with the Debt Management Plan.
‘Agreement’ means the agreement between Us and You made on the Terms of Business.
‘Monthly Payment’ means the total amount which is paid every month by You to Us throughout the Debt Management Plan.
‘Set up Fees’ means the first 2 payments made paid by You to Us to get the Debt Management Plan arranged.
‘Initial Fee’ is the first payment into your Debt Management Plan
‘Monthly Management Fee’ is the ongoing monthly fee We charge to administer your plan, equivalent to 15% of your Monthly Payment subject to a minimum of £39.00
2. Agreement
You request us and we agree to provide you with debt counselling advice and an adjusting service in accordance with these terms and conditions. You authorise us to negotiate on behalf of yourself with your Creditors. This agreement will continue until the final payment to the Creditors is made in accordance with the Debt Management Plan, unless it should be terminated prior to this time in accordance with section 7.
3. Your responsibilities
3.1 You will provide to us upon our request with any 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 may 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 documentation so that we can negotiate with your Creditors on your behalf and
3.3 You will pass copies to us of all correspondence from your Creditors and keep us updated in any dealings you have with any Creditors, whether we are negotiating with them or not. When the Debt Management Plan is active, you will not make any expenditure over and above your reasonable living expenses as calculated in your Debt Management Plan. You will not use your credit cards and not incur further debts.
3.4 You will inform us in relation to your Debt Management Plan of repayments or alterations to it or reviews of it. Your Payments to us will need to be changed to reflect any reasonable changes which your financial position dictates. You will make payments to us under and in accordance with the Debt Management Plan promptly and without any deductions.
3.5 Occasionally your Creditors may not provide us with balances of your accounts due to their internal company procedures. Under these circumstances We will ask You to obtain this information for us.
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 held by us are owed then written confirmation will be required to release them to you in accordance with section 7 of this agreement.
3.8 If you do not keep up regular payments we will stop any action and payments on your account. Your creditors may have to be informed that payments are not being made to us. This could 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 This Agreement will start when you confirm your acceptance of these Terms and Conditions of Business either by returning the completed Letter of Authority form or if earlier, the day when we receive the Initial fee from you in cleared funds. We will review your finances, covering your income, expenditure, debts and assets. These must include all debts secured on property or products, 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 service a Debt Management Plan that you can use to pay off your Creditors out of your disposable income at rates you can afford. The Debt Management Plan will let you make a regular 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 needs of your Creditors, if there is more than one.
4.3 We will discuss with your Creditors and attempt to agree a repayment plan with them regarding 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 surpass your disposable income (minus our fee) as calculated by us for the same period.
4.4 We shall try to agree with your Creditors, where appropriate, that they freeze or reduce the interest charges and that they suspend or withdraw enforcement procedures issued in relation with your agreements with them. In rare instances County Court proceedings may still be levied against you. In these circumstances we will assist in completion of all applicable paperwork as required. We cannot guarantee to stop legal action by your Creditors. Creditors are not obliged to freeze interest and charges.
4.5 We shall make payments to your Creditors in accordance with the Debt Management Plan and advise both you and your creditors of the first payment due to your creditors.
4.6 The payments made to your Creditors can be seen on the statements you will be given from them. A full breakdown of all payments we have made can be obtained on written request to us. On all Creditors accepting the offers of repayment we will issue you with a breakdown of these.
4.7 Should your situation or any other relevant matter change during the Period, we shall, in discussion 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 Creditors may request on update of your financial situation. We will contact you to review your recent financial circumstances and update your Debt Management Plan accordingly. To assist this process we request that payslips are regularly forwarded to us for review.
4.9 All payments to us will be made into our Blue Finance Management ‘Client Account’. This account is independent to our own business accounts and funds held for distribution to your creditors will be reserved for that purpose only. No interest will be payable to you on funds that we hold. At all times balances held for distribution to your Creditors will be classed as client monies.
4.10 During the negotiation process some Creditors may keep on charging interest and other recovery charges. We cannot always stop these charges. These however will 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 grievance regarding its practices very seriously. Any complaints can be sent in writing to the Directors of the company and will be dealt with personally by them. The Director(s) of the Company will reply to any correspondence within 14 days.
5. Our Fees
5.1 We will issue an estimated financial statement after our first initial counselling session. This will be based on your estimated Creditor balances that you will provide us. This will contain an estimated repayment term based on the assumption that interest and charges will be stopped on these accounts and your Monthly Payment remains the same for the Term of the Debt Management Plan.
5.2 Where Creditors persist in charging interest or making charges, this term will be extended.
5.3 Unless we agree otherwise with you, we will retain from each monthly payment under the Debt Management Plan (excluding the Set Up Fees) a gross fee equal to 15% subject to a minimum of £39.00.
5.4 Because the majority of our work is done on your behalf at the start of the Period, to Set up the Debt Management Plan we will retain your first two monthly payments as the Set up Fee. This may lead you to fall into arrears or further arrears with your creditors.
5.5 We will issue payments to creditors within 5 working days of receiving your cleared payment. If for any reason there was a delay in issuing these payments, exceeding 5 days from the date in which we received your payment, we will contact you to inform you along with an explanation why.
5.6 You have the right to withdraw from your debt management plan at any time without paying any early termination fees. If this agreement is ended in accordance with section 7, we will return any undistributed funds after having deducted the above fees and you will not have to pay us any more money. This will be done within 30 days of receipt of written confirmation in order to allow us time to process all receipts and payments on your account.
5.7 We will charge one monthly payment as a ‘Reset up Fee’ should You fail to make a payment into Your plan for over 40 consecutive working days or if you fail to make your monthly management fee to cover our administration costs to reset the plan with your creditors, this payment is non refundable. If you fail to make your monthly payment into your plan for a period greater than 60 consecutive working days or fail to make the minimum monthly management fee then we have the right to charge the full Set up Fees again.
5.8 Creditors are not obliged to accept reduced payments or to freeze interest and unless they do so, you will be repaying the same debt over a longer period of time which will increase the total amount of debt to be paid.
5.9 We have the right to charge you one monthly payment for an Individual Voluntary Arrangement (IVA) referral to our chosen partner, to cover our administration costs and any costs associated with collecting/completing any necessary paperwork to pre-qualify you on our IVA partners’ behalf. In addition We will receive a fee from our chosen IVA partner if the IVA is approved for collating the information on their behalf.
5.10 For settlements we charge a fee of 30% of the debtor saving for Savings of less than £1,000 and charge a fee of 25% for Savings greater than £1001.
6. How we handle your money
6.1 All payments that We receive from You in Cleared Funds will be paid directly into the Client Account. The only payments which We will make out of our Client Account are: (a) payment of our Monthly Fees; (b) payment of the Monthly Repayments to your Creditors in accordance with the Debt Management Plan; and (c) any other payments as instructed or agreed with You.
6.2 We will distribute the Monthly Repayments amongst your Creditors in accordance with the Debt Management Plan normally within five working days of receipt of the Monthly Payment from You in Cleared Funds. If there is a delay in any payment which is not beyond our control, We shall take the appropriate action to put You in the position You would have been in if the payment had been made within five working days in Cleared Funds and shall make good any additional interest which has accrued and any default charges that have been applied to the account as a result of the delay.
7. Termination of agreement
7.1 After our first counselling session, on return of the completed debt management plan Welcome pack we will send to you a financial statement containing the proposed offer of repayment to each of your Creditor companies, the term of the Debt Management Plan and the total fees. If for any reason, you wish to cancel, we offer a seven working day cooling-off period from the agreement start date deemed to be when You confirm your acceptance of these Terms and Conditions of Business either by returning the completed Letter of Authority form or if earlier, the day when we receive the Initial Fee from you in cleared funds, in which time you may receive a Full refund. After such time you may withdraw from the plan at any time where i) following the signing of the contract, the total fee differs significantly from the estimate given prior to the contract ii) where we have offered more than what we can deliver iii) we have failed to provide services with reasonable care and skill iv) there has been a total failure of consideration
7.2 After the seven working day cooling off period you may end this agreement by giving us 1 weeks notice in writing. In the case where payments have been made during the seven working day cooling-off period a full refund will be given but after which time no refund will be applicable.
7.3 We may end this agreement by giving you 1 weeks notice in writing if any one of the following events occurs:
1. You breach this agreement and do not fix the breach within seven days of making you aware of this breach;
2. A bankruptcy petition is levied against you;
3. You enter into an individual Voluntary Arrangement/Trust Deed;
4. Where the information provided to us is knowingly fraudulent;
5. The information provided by you at the time of getting a loan (HP agreement, credit card or any other form of credit) is deemed incorrect or fraudulent by any Creditor; or
6. If we are affected by Force Majeure.
8. Effect of ending this agreement
When the Agreement ends: (a) our duties and obligations under this Agreement will come to an end; (b) your liability to your Creditors will continue to the extent that any amounts You owe to your Creditors remain outstanding over and above the repayments made to them under the Debt Management Plan; and (c) You may, within 30 days of the end of this agreement, request Us to send You copies of all paperwork received from You or your Creditors that has been retained by Us as a scanned image.
9. Personal information
9.1 The Agreement deals with keeping confidential all information received from or about You. We will not pass this information to anyone else without your permission, except in line with our data protection statement at clause 10 or to such of your Creditors as is necessary in order for Us to negotiate repayments with such Creditors, including Creditors who may process your data outside the European Economic Area (EEA).
9.2 If You have opted to receive information from us by text messaging or email, You are responsible for the security of your mobile telephone, personal computer or other such telecommunications device. You must take all reasonable precautions to prevent anyone else from accessing your information, including using all security features available on your mobile telephone, computer or other telecommunications device and for informing Us if your mobile telephone, computer or other telecommunications device is lost, your telephone number or email address changes or if You suspect that someone may have access to the information We send You.
10. Data protection statement
10.1 Please read this statement carefully as it explains what personal information We collect about You and how We use this information.
10.2 We collect personal information about You both directly from You when You apply for our Services and from your Creditors as authorised by your Consent Form. We may also collect further information as a result of managing your Debt Management Plan.
10.3 We will use your personal information to provide our Services to You, and in particular to: (a) prepare and issue to You your Debt Management Plan; (b) negotiate with your Creditors on your behalf; and (c) keep You informed about your Debt Management Plan and our services.
10.4 Subject to clause 10.5 We may also use your personal information to contact You to provide You details of other products and services which We think may be of interest to You, including those offered by selected third parties. We may share personal information with these selected third parties and they may contact You directly to provide You with details of such products and services.
10.5 You must let Us know if You do not want Us to use or disclose your personal information as set out in clause 10.4 above or if you wish to amend the way we communicate with You.
10.6 Other than as set out above We will only disclose your personal information to the extent required by law, court order or as requested by government or law enforcement authority, or to any company or other entity to whom we either transfer or subcontract any or all of our obligations to You under this Agreement.
10.7 You may contact Us by writing at any time to the Data Protection Officer at our address given below for further information, or if you want to request a copy of the personal information which We hold about You or to ask Us to amend any inaccurate information held by Us. If You request a copy of the personal information which We hold about You We will charge You a fee of £10.
10.8 Please note that We may record and monitor your calls with Us to improve our service.
11. Other terms
11.1 All fees are exclusive of any applicable value added tax (VAT) or other sales tax. Please note that although the provision of our Services is currently VAT exempt, this position could change in the future. If it does change We will notify You and amend your Debt Management Plan accordingly.
11.2 We may transfer our rights and obligations under the Agreement by giving You written notice of such transfer.
11.3 All notices sent under the Agreement, shall be valid if sent by post and shall be deemed served two business days after posting. The Agreement is governed by English law.
11.4 The Agreement sets out the entire agreement and understanding between You and Us and supercedes all prior agreements, understandings or arrangements (whether oral or written) relating to the provision of the Services. The Agreement can only be varied in writing and provided the variation is signed by a DEBTPLAN Direct™ director.
11.5 You acknowledge that You have entered into the Agreement in reliance only on the representations, warranties and promises specifically contained or incorporated in the Agreement and, except as it expressly sets out, You agree that We shall have no liability in respect of any other representation, warranty or promise made prior to or since the start of the Agreement unless it was made fraudulently.
11.6 We shall not be deemed in breach of the Agreement or otherwise liable to You if We are prevented or hindered from performing our obligations under the Agreement by reason of any event beyond our reasonable control.
