Terms & Conditions
Terms & Conditions
1.1 Definition of Terms
‘You’ - The person signing the client representation authority
‘Us’ - In control debt solutions ltd. Registered Office; Verney House, 115 Sidwell Street, Exeter, Devon, EX4 6RY. Licensed by The Office of Fair Trading under Consumer Credit License Number 549530
‘Creditors’ - Any and all of the unsecured creditors whose details You have provided Us in accordance with section 4.2
‘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
‘Fees’ - The fees to be paid by you to us in accordance with the Debt Management Plan.
2. Agreement
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 has been terminated beforehand in accordance with section 6.
3. Your responsibilities.
3.1 You will provide us on request, 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 may have, your dependants and any judgements or other enforcement action being taken against you.
3.2 You will sign any necessary forms of authority or provide us with security passwords on your accounts so that we may negotiate with your creditors on your behalf and carry our obligations under this agreement.
3.3 You will pass on any correspondence you have received from your creditors and keep us informed of any dealings or separate arrangements you have made with them.
3.4 You will consult with us with regards to your Debt Management Plan of repayments and in relation to any alterations or reviews of it. Your payments to us will need to be amended to reflect any change in your personal financial circumstances. You will maintain payments to us in accordance to your Debt Management Plan promptly and without deductions.
3.5 On occasion, your creditors may not provide us with details of your accounts due to their company policies. If these circumstances arise then you will request this information on our behalf and provide it to us.
3.6 We cannot be held responsible for any legal action taken against you as a result of fraudulent or incorrect information provided by you at the point of acquiring a loan, HP agreement or any other form of credit.
3.7 If you do not maintain regular payments we will suspend any action and payments on your plan. Your creditors may have to be informed that payments are not being maintained. This may result in your creditors continuing legal action for which we cannot be held responsible.
3.8 We are unable to deal with certain types of debts called your Priority Debts which are; Mortgages/Secured Loans, Rent, Tax/National Insurance/VAT, Tax Credit Overpayments, Utility Bills, Hire Purchase, Business Rates, Magistrates Court Fines and Maintenance Payments. These debts should not be ignored and must be paid by yourself outside of the debt management plan.
4. Our responsibilities.
4.1 We will review your finances, covering your income, expenditure, debts and assets. 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 all of your unsecured credit out of your disposable income at rates you can afford. The Debt Management Plan will allow you to make one monthly payment to us and will take into account all of your creditors and our fees.
4.3 We will negotiate with your creditors and will attempt to agree repayment terms with them of the amounts outstanding. In doing so we will use the Debt Management Plan and we shall ensure that the periodic payment that we agree with them will not exceed your disposable income (minus 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 interest charges and suspend or withdraw any legal action issued in accordance with your agreement with them. Your debts may take longer to pay off under a debt management plan which can also increase the amount you pay and impact on your credit rating. In rare incidents County Court proceedings may still be actioned against you. In these cases we will assist in the completion of all paperwork required. We cannot guarantee to stop legal action by your creditors.
4.5 We shall make payments to your creditors in accordance with the Debt Management Plan
4.6 The payments made to your creditors will be reflected on the statements you receive from them. A full breakdown of all payments we have made on your behalf can be obtained upon request. In addition, we will provide you with monthly statements depending on your preference.
4.7 Should your circumstances change during the period, we shall, in consultation with you, review the Debt Management Plan and make any changes as necessary.
4.8 From time to time, your creditors will request an update of your financial situation. We will, where necessary action this request on your behalf. We will review your situation every 6 months from the first payment into your Debt Management Plan.
4.9 All payments to us will be made into our in control debt solutions client account and paid to your creditors the next working day after full, cleared funds have been received by Us. This account is separate to our business account and is used for the sole purpose of fund distribution. No interest is earned or payable to you on funds that we hold.
4.10 During the negotiation process some creditors may continue to charge interest and other recovery charges. We cannot always prevent these charges being applied. They 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 We take any complaints seriously. Any complaints should sent in writing to the Directors of the company. The Directors of the company will respond to correspondence in 14 days
5. How we will be paid.
5.1 Unless we agree with you otherwise, a gross fee of 15% will be deducted from your monthly Debt Management Plan payment subject to a minimum of £20.00
5.2 You will pay an agreed set up fee over one or two months at the start of your plan. Your debts will fall into arrears as a result of stopping payments to your creditors at this stage.
5.3 If this agreement is ended in accordance with section 6 we will return to you any undistributed funds after deducting the above fees and you will not have to pay us any more money. This rebate will be made within 30 days of termination of the agreement.
5.4 With regards to weekly payments, one monthly payment is equal to 4 and one third weekly payments.
5.5 Short settlement fees are calculated at 10% of the total saved as a result of our negotiations.
6.0 Termination of the agreement.
6.1 On receipt of your first payment, we will issue you a welcome letter and What Happens Next leaflet. You can cancel your contract at any time up to 7 working days from the date of this letter. To do this, please email us or write to us. You do not have to give any reason for cancellation. However, a brief explanation will allow us to improve the service we offer to customers in the future.
6.2 After your seven days cooling off period, you may end this agreement by giving us four weeks notice in writing.
6.3 We may end this agreement by giving you four weeks notice if any of the following occur.
- 1. You breach this agreement and do not remedy the breach within seven days of our bringing the breach to your attention.
- 2. A bankruptcy petition is issued against you.
- 3. You enter in an IVA/Trust Deed
- 4. Where the information provided to us is knowingly incorrect
- 5. If we are affected by Force Majeure.
6.4 A plan restart fee may be payable if you wish to restart your plan after cancellation either by us or yourself.
7 The maximum liability of the company to the client under any circumstance will not exceed the total fees paid by the client to the company.
