Terms and Conditions

Payment Plan Limited

Terms and Conditions

The agreement between you and us is made on the following terms:

  1. Definition of Terms

‘You’-our customer, whose name is recorded on our documents (and partner where any of the debts are in joint names).

‘Us’-Payment Plan Limited, Registered Office: No 6,Twelve O’Clock Court, 21 Attercliffe Road, Sheffield, S4 7WW Company Registration Number 07286426. (‘My Payment Plan ‘is a trading style of Payment Plan Limited)

‘Creditors’: Your unsecured creditors that you provide us details of in accordance with these terms and conditions.

‘Debt Management Plan’. A programme of repayments to your unsecured creditors produced by us.

‘Fees’- The fees payable to us in accordance with your Debt Management Plan.

  1. Agreement 

You request us and we agree to provide you with debt counselling advice in accordance with these Terms and Conditions. You will not be charged for this initial advice by us. You authorise us to contact your creditors and negotiate with them. The agreement shall continue until the creditors have been paid in full in accordance with this Debt Management Plan unless it has been terminated beforehand.

  1. Your Responsibilities 

3.1 You will provide us information on your finances when requested including, but not limited to, your income and expenditure, your unsecured and secured creditors and any agreements you have made with them, your dependants and details of any judgements made against you along with any enforcement action you are aware of. If your creditors are unable to provide us with up to date balances due to their procedures, you agree to obtain them for us.

3.2 You will sign any necessary forms in order that we may negotiate with your creditors.

3.3 You will advise us of any dealings you have with your creditors and pass copies of all relevant correspondence whether we are negotiating with them or not.

3.4 Once the Debt Management Plan has been agreed, you will cease using your credit cards and not incur further debts.

3.5 You will discuss with us changes in your circumstances in order that your Debt Management Plan can be reviewed and, if necessary, renegotiated. You will make payments to us on the due date in accordance with your Debt Management Plan.

3.6 We cannot be held responsible for any legal action taken against you as a result of incorrect or fraudulent information provided by you at the time the debt was taken out.

3.7 Non-contact and non-payment from you will be considered a cancellation of the agreement.

3.8 If you do not make regular payments, we will suspend action on your account. Your creditors may have to be informed which may result in them considering taking legal action.

3.9 You remain responsible for the payment of all secured loans, HP agreements and household bills. 

  1. Our Responsibilities 

4.1 We will review your finances covering your income, expenditure, debts and assets. (We cannot negotiate reduced payments on debts secured on assets).We will calculate your disposable income based on reasonable living expenses. 

4.2 We will produce with you a Debt Management Plan by which you can pay off your unsecured creditors out of your disposable income at rates you can afford. The Plan allows you to make monthly payments to us and takes into account your creditors and our fees. It will not take into account matters that you have not made us aware of.

4.3 We will contact your creditors and attempt to negotiate repayments terms with them based on your disposable income and the balances outstanding. We will also negotiate with them to freeze the interest and other charges accruing on your debts. However, we cannot guarantee these will be stopped. It is possible that County Court proceedings may be issued against you as we cannot guarantee to stop such action. We will assist in the completion of any related paperwork as required.

4.4 We shall make payments of at least half your monthly contribution to your creditors each month in accordance with your plan. A full breakdown of payments we have made can be provided on request. Payments to creditors will commence once the first monthly payment has been received (or weekly payments).

4.5 Should your circumstances change, we will, in consultation with you, renegotiate your payments with your creditors.

4.6 Occasionally, your creditors will request a financial update on your circumstances. We will contact you when such a request is received to obtain the relevant information from you.

4.7. Any complaints can be sent in writing to the Directors of this company and it will be dealt with by them within 10 working days. A full copy of our complaints procedure is available on request.

4.8. If you do not maintain regular payments, your creditors will not be paid. This may result in your Creditors continuing legal action against you.

4.9 We can only provide you advice on the services we offer. However, if you request us to do so, we will pass your details on to other companies should you wish to consider other options.

4.10 Step Change is an independent service set up to help people manage their money. If you would like to look at alternatives to My Payment Plan, Step Change are able to provide you with free debt advice at www.stepchange.org. 

  1. How we will be paid 

5.1 As most of our work will be done at the start of your Debt Management Plan we will charge you a set-up fee equal to 50% of your monthly payment (subject to a maximum of £1,400) for the first six months of your plan..

5.2. From the seventh payment onwards, a fixed monthly management fee of £38 will be taken from every monthly payment . 

5.3 If the agreement is ended, we will return to you any undistributed funds within 30 working days after having deducted any fees due to us.

5.4 If you wish to pay weekly, we will make payments to your creditors every 4 weeks subject to sufficient monies being received.

5.5 On receiving your verbal agreement, we will issue a pack to you in order that you can provide us with your financial information. Once this has been returned to us we will contact your creditors to obtain the outstanding balances on your accounts.

5.6 On receiving your first payment, and having received the outstanding balances from your creditors, we will write to commence negotiations with your creditors who will receive an offer of repayment from us. If sufficient monies have been received, we will also forward the first payment to you creditors.

Debt Negotiation 

5.7 If you wish us to negotiate with your creditors in order that you can settle your debts with reduced balances, we will charge you a Settlement Fee to cover our costs should you decide to take this option. This fee is payable for our Services in negotiating with your creditors and to cover the cost of administering payments to creditors, dealing with queries from them and providing our professional services to you.

Initial Fee

If you wish us to negotiate with your creditors, we will charge you an initial fee for setting up the negotiation and to cover our costs for collecting information in relation to your circumstances and initial creditor contract, should you decide to take this option.

The initial fee is dependent on the number of creditors you have and is calculated as follows:

1 – 4 creditors               £500

5 – 9  creditors              £1000

10+ creditors                 £1500

*If you are already on a DMP, please note this fee will not apply.

Settlement Fee

In addition, we will charge you a settlement fee. This fee is payable for our Services in negotiating with your creditors and to cover the cost of administering payment to creditors, dealing with queries from them and providing our professional negotiation services to you.

The fee is equivalent to 20% of the amount we save you on your total debts will also be payable.

Please see our Debt Negotiation Fee Structure for more information.

Bankruptcy 

5.8 If you wish us to assist you in petitioning for your own bankruptcy, we can assist you in the preparation of your bankruptcy Petition.  Our fee for this service is detailed at www.mypaymentplan.co.uk.

Please see Bankruptcy Fee Structure for more information.

  1. Termination of Agreement

6.1 On receipt of your signed documents or first payment (whichever is sooner), we offer a 14 day cooling off period if you wish to cancel for any reason. After this period, you may end the agreement by giving us 2 weeks’ notice in writing.

6.2 We may end this agreement by giving you 2 weeks’ notice in writing if the following events happen

  • A bankruptcy petition is issued against you.
  • You enter into an Individual Voluntary Arrangement or Trust Deed.
  • Where the information provided by you is knowingly incorrect.
  • After 2 consecutive payments have been missed.
  • Where you have not responded to a request from us to complete a financial review within a reasonable period of time

You will not be charged any additional fees should your debt management plan be cancelled