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Terms & Conditions

Terms and Conditions

 

"Agreement" means the agreement between You and Us made mainly on these Terms and governed by English Law.

 

"Cleared Funds" means monies paid by You to Us which have cleared through the bank system which cannot be reclaimed or returned unpaid.

 

"Creditors" means all of the people or businesses You have told Us You owe money to and who are included in Your Debt Management Plan.

 

"Debt Management Plan" or “Plan” means the schedule of Monthly Payments, prepared by Us based on the information provided by You, as revised from time to time, through which You repay Your Creditors through Us and pay for our Services.

 

“Disposable Income” means the amount of money you have available each month to pay into the Plan, after allowing for all priority and essential expenditure.

 

“Essential Expenditure” means those items of expenditure which are not priority expenditure but which are essential to maintaining a reasonable and healthy standard or living.

 

“Financial Statement” means

 

“Monthly Payment” means the total monthly amount You will pay to Us under the Debt Management Plan based on Your Disposable income. The Monthly Payment includes the amounts to be paid to Your Creditors as well as Our fee.

 

“Priority Expenditure” means those items of expenditure which have significant consequences if You do not pay them and include items such as Your mortgage or rent, utility bills, council tax, secured loans or credit secured against other assets as well as payments of income tax, national insurance, and VAT.

 

“Unsecured Debt” means Your credit arrangements which include credit cards, personal loans, overdrafts, catalogue accounts and other credit accounts which are not secured against Your home or another asset.

 

"Services" means the services We agree to provide You with under this Agreement in accordance with Section 2.

 

"Us", "We" and “Our” means Credit and Loan Management Limited or anyone to whom We transfer our rights under this Agreement.

 

"You" and “Your” means You, the person(s) entering into this Agreement named in the letter of authority.

 

1. Appointment

1.1 You appoint Us and We agree to provide the services as shown in section 2.

1.2 This Agreement will start when You confirm Your acceptance of these Terms of Business and when We have received the first Monthly Payment from You in Cleared Funds.

2. Services and What We Will Do

2.1 We will review Your financial circumstances, including Your income and expenditure, and complete a financial statement to identify Your Disposable Income and understand the cause of your financial difficulties, your preferences and objectives and determine the most appropriate debt solution for you.

2.2 We will take into account Your Priority Expenditure when identifying Your Disposable Income.

2.3 If we identify that a solution, other than a Debt Management Plan, is appropriate for your circumstances, we will, with your permission, refer you to a free source of independent advice (in the case of bankruptcy, a debt relief order or a debt administration order) or a specialist company (in the case of an Individual Voluntary Arrangement).

2.4 If we identify that a Debt Management Plan is the most appropriate solution for you, We will prepare a draft Debt Management Plan which will give You an estimate of the length of Your plan, Your Monthly Payment, and the fees payable. We will present this to You and Your Creditors as a proposal for the repayment of Your unsecured debts. This will be based upon the information which You have given to Us.

2.5 We cannot include any debts which are secured against property or other assets or debts which are due against priority expenditure.

2.6We will negotiate with Your Creditors and attempt to get them to accept these reduced payments, freeze interest and other charges on Your accounts and suspend or withdraw any proposed action to recover the debts but We cannot guarantee Your Creditors will agree.

2.7 We may need to amend the draft Plan if the information You have given Us is incorrect, for example, if the Creditors confirm that Your balances are higher or lower than You have told Us. In this case, We will write to You to confirm the final debt management plan.

2.8 Your Monthly Payment will be paid into our client account which is held separately from our business account.

2.9 We will deduct Our fee, in accordance with clause 4, from Your Monthly Payment and pay the balance to Your Creditors within 5 business days of receiving Cleared Funds from You.

2.10 We will review Your plan at least once each 12 months, or earlier if You or Your Creditors request it or there is a change in Your circumstances.

2.11 We will provide You with a statement once every 12 months showing the amounts that You have paid to Us, the amount of fees and the amounts paid to each of Your Creditors along with the estimated remaining duration of your Plan and the estimated fees over the remaining duration.

2.12 You may request a statement from Us at any time and We will provide this to You, unless We have already provided You with one within the previous 25 days and the information has not changed.

2.13 We will keep You informed of all material communications between Your Creditors and Us, and shall deal with all communications appropriately and promptly.

2.14 We CANNOT lend You money or provide You with legal advice.

3. What You will do

3.1You will provide Us with full and accurate details about Your net income, outgoings, outstanding debts and assets and any other information which We may reasonably request to enable Us to deliver the Services. You will not knowingly provide Us with false or misleading information.

3.2If You become aware that You have given Us false or misleading information or there are any significant changes in Your financial circumstances You will notify Us within 7 working days of becoming aware of the error or change.

3.3You will send Us originals or copies of all correspondence You receive from Your Creditors or other information that We may reasonably request which We may need to provide the Services.

3.4You will pay the agreed Monthly Payments to Us and will not make payments directly to Your Creditors unless You tell Us.

3.5You will allow Us to negotiate on Your behalf with Your Creditors.

3.6You will not ignore correspondence or telephone calls from Your Creditors and must keep Us informed of any contact made by or on behalf of Your Creditors.

3.7You agree not to take out any further credit or incur any additional unreasonable expenditure during this Agreement.

4. Cost of the Services

4.1 We will charge you a monthly fee of £29.38 which will be deducted from your Monthly Payment.  The balance will be distributed to Creditors.

5. How You may end this Agreement

5.1 You have the right to cancel this contract within 14 days without giving any reason and without cost. The cancellation period will expire after 14 days from the day after You sign the agreement. To exercise Your right to cancel, You must inform Us of Your decision to cancel this contract by a clear statement, for example, a letter sent by post, fax or e-mail or by telephoning us. Contact details are given in clause 7.3 below. If You cancel this contract within the cancellation period, You will have no liability to pay any fees. If you have already made a payment into Your Plan and We have distributed this to Your Creditors We will refund the Fee already deducted.

5.2 After the first fourteen days You can cancel the Agreement at any time by giving Us two weeks’ written notice and we will return any monies already paid to Us, since your last full Monthly Payment, less any amounts already paid to your creditors.

5.3 You can also cancel the Agreement if the final Debt Management Plan details are significantly greater than estimated in the draft Plan. Your Plan will be significantly greater if the length of the Plan, the Monthly Payment or the fees are 20% higher than estimated.

5.4 If You cancel the Plan in accordance with clause 5.3 and the reason for any of the plan details being significantly greater is as a result of information given by You which You knew to be significantly incorrect then We reserve the right to retain the fees charged to that point to cover our reasonable costs incurred in administering Your plan.

6. How We may Change or End this Agreement

6.1 We may end this Agreement by giving You four weeks’ prior written notice if You: (a) fail to make two successive Monthly Payments, You are in serious breach of this Agreement or have committed a series of minor breaches and You have failed to resolve these following a request from Us to do so, You become bankrupt, or enter into an Individual Voluntary Arrangement.

6.2We may vary these Terms of Business from time to time to reflect the increased cost of providing the service to You, to reflect changes or perceived changes in legislation, taxation or regulation, as a result of decisions made by the Financial Ombudsman Service or to make a term clearer.

6.3We will always give You at least 30 days’ written notice of any changes before they take place, unless the change is to your favour in which case we will affect the change with immediate effect. If you are not willing to accept the change you will be free to end the agreement and You will have no amount to pay under the Agreement.

7. General conditions about this Agreement

7.1This agreement is governed by English Law.

7.2We may transfer Our rights under this Agreement by giving You 30 days’ written notice of such transfer. You will be free to reject such a transfer by writing to Us at the address given within the assignment notice. You will not be charged a cancellation fee if You reject such a transfer.

8. Complaints

8.1 If You have a complaint You can write to Us at 20-22 Wenlock Road, London, N1 7GU, email Us at info@creditandloan.co.uk or telephone Us on: 0800 0727 844

We will acknowledge Your complaint and undertake a full investigation, responding to You with our findings. If We have not resolved Your complaint with 8 weeks or You are not satisfied with Our response You can refer it to the Financial Ombudsman Service. For further information visit www.financial-ombudsman.org.uk. Our full complaints procedure can be obtained on request or by visiting our website, www.creditandloan.co.uk

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