6. Information to be provided to customers

Members must provide customers with sufficient, clearly written information to enable them to make an informed decision about whether or not they would benefit from the services the DMC’s offer. In particular the following must be covered:

It must be made clear that administration and/or management fees will be payable, and details of such costs must be provided.

If a first payment goes to the DMC rather than to the creditors, customers must be warned that they will go further into arrears with their creditors.

The customer must be advised that they will be given the opportunity to withdraw from the contract, the procedures for withdrawal the circumstances in which costs will and will not be incurred and, if they are, what they are likely to be.

The nature of the service to be provided by the Member: the total cost to the customer of the service including any fee or deposit, the management fee to be paid to the member .

Creditors are not obliged to accept reduced payments or to freeze interest or charges and fees and unless they do so, repaying the same debt over a longer period of time will increase the total amount to be repaid. Collection actions, including any litigation, can ensue or continue.

The likely impact of the debt management programme on the customer’s credit rating, that they might not be able to obtain credit in the short, medium or long term.

The importance of priority debts and any arrears, and ensuring that an allowance is made for these payments within the programme.

The types of commitments that will, and those that will not be included within the repayment plan must be made clear to potential customers.

The likelihood that existing bankers may not wish to continue banking facilities and information and advice on basic bank accounts.

The terms and conditions of any managed or other bank account or other service offered.

Where a member of staff from a Debt Management Company recommends that, one of their options is a remortgage, or further advance, or consolidation loan, the DMC must disclose to the customer in writing the level of remuneration they will receive from the third party who arranges this service, if not already disclosed by the third party.

Full & Final Settlements

DMC’s may negotiate full and final settlements with your Creditors on your behalf. There is a separate fee for this service.