Debt Release Direct Terms and Conditions - Please read carefully

These terms and condtions relate to our Debt Management product for our bankruptcy products please click this link.

Section 1. Definition of terms

Agreement - Means the agreement between you and Debt Release Direct Limited (DRD) for the provision of services which are the subject to these terms and conditions.

Creditors - Means any person or party to whom you owe money, subject to that sum being unsecured and which you disclose to DRD in the course of your instructions. DRD shall not accept any liability for negotiating any arrangement with a creditor that you fail to disclose or any consequences that may or do arise as a consequence of your failure to do so.

Debt Management Plan - Means an arranged plan of repayments with your creditors, facilitated, organised and managed by DRD.

DRD - Means “Debt Release Direct Limited”, a UK Company registered and trading from, Crown House, Bury, BL9 7JR, and registration number is 4730443. DRD is part of the Release Money Group Limited (RMG) which also includes Varden Nuttall Limited (Licensed Insolvency Practitioners) and Release Money Limited (Mortgage and Insurance brokers).

Fees - Means the sum that you shall pay and maintain payment of, to DRD for the works undertaken upon your behalf and as defined in section 5 below.

Token Payment - Means the payment to be paid by DRD to your Creditors on your behalf. The token payment will be deducted from each payment towards the set-up fee, until the set-up fee has been paid in full. The token payment is distributed following receipt of cleared funds from you.

Monthly Payment - Means the Payment to be paid by DRD to your Creditors on your behalf each calendar month. Monthly payments will only be distributed following receipt of cleared funds from you.

Section 2. Appointment and Term

2.1 You appoint and authorise DRD to act as your appointed representative, to discuss, negotiate, manage and facilitate the payment of, and ongoing payments of, any monies in partial or complete satisfaction that you owe to your creditors. DRD shall be responsible for managing, following the deduction of our fees, and facilitating payments from a prescribed and identified sum, paid each month to DRD by you, and apportioned and distributed amongst your creditors in accordance with your personal plan.

2.2 You authorise DRD and its employees and agents to provide personal information and financial data to your creditors and also to discuss any aspect of your financial affairs relating to your financial difficulties.

2.3 These terms and conditions will be enforceable from the date we received your signed authority to act, which amongst other things requires you to confirm that you accept these terms and conditions.

2.4 This Agreement shall continue for the duration of the debt management plan unless terminated earlier as set out in sections 2.5 and 7 or by DRD as set out in section 8. The duration of the debt management plan shall be determined by the amount that you owe to your creditors and the payment terms that are agreed.

2.5 Cooling Off Period. You are entitled to terminate this agreement without penalty, and receive a full refund of any monies paid to us. You have 7 working days to change your mind from the date that you receive these terms and conditions. The day you receive these terms and conditions will be assumed to be 3 days after the date of the enclosed letter of introduction.

Example:
• Introduction letter dated and posted by Debt Release Direct on Monday 1st November 2010.
• Date of receipt assumed to be Thursday 4th November 201 - Start of Cooling Off Period
• Monday 15th November 2010 – End of cooling off period

It is your responsibility to communicate cancellation to us and this must be done in writing and served at our registered address and addressed to the Cancellations Department. In the absence of cancellation, we shall proceed in accordance with our instructions. If you decide to cancel within the cooling off period and in accordance with these terms and conditions, and money paid by you to us will be refunded in full and without deduction. Refunds shall only be paid where and when payments made to DRD by you have cleared (this normally takes 3 to 5 working days).

Section 3. Procedure and the Services we provide

3.1 You will provide DRD with accurate and current information regarding your personal financial circumstances, including all relevant information regarding your income, expenditure and liabilities. This must include all relevant details whether in single and/or joint names. Based upon your instructions, DRD will calculate your disposable income, taking into account, allowances for reasonable living expenses in line with current regulatory and industry guidelines. This information is used to identify the most suitable debt management option available to you. If after assessing your circumstances, you are not offered a debt management plan, DRD may refer you to an alternative source or provider of advice, which may include other members of the Release Money Group and/or other financial or government institution, which specialise in alternative, suitable and/or other relevant product(s). DRD may receive a commission for this referral, full details of which will be given at that time.

3.2 If DRD are able to assist you with your agreement and consent, we will approach your creditors and negotiate a Debt Management Plan which is both affordable and sustainable given the information that you have provided to DRD. The Debt Management Plan will allow you, through us, to pay to your creditors a reduced monthly payment that will be acceptable to your creditors and shall be paid within a reasonable period.

3.3 Upon entering into the debt management plan, you shall be required to make a regular payment to us, from which we shall deduct our fees, and then distribute the balance amongst your creditors in accordance with the Debt Management Plan. Upon receipt of your payment to DRD, we shall facilitate payment to your creditors usually within 5 working days of receipt.

3.4 Please note – Some Creditors may not accept reduced payments and continue to charge interest or other recovery charges, and may already have instructed enforcement proceedings against you. DRD shall attempt to agree with your Creditors for the withdrawal of any such proceedings, where appropriate, that they freeze or reduce their interest charges. (Unless Creditors do this, repaying the same debt over a longer period of time will increase the total amount to be repaid.) Please note that DRD cannot guarantee the outcome of these or any negotiations. DRD will not be liable for any judgment or financial order imposed against you in relation to any claim brought by one or more of your Creditors at any time. DRD are not liable for any previous agreement or payment plan that you have personally entered into with your creditors prior to our instruction.

3.5 Entering into a Debt Management Plan may affect your credit rating, obtaining further credit in the short term will prove difficult, there is some likelihood that attempting to obtain further credit in the medium to long term may also prove difficult.

3.6 Each month, DRD will send you a printed document which shows the payments DRD have made to your creditors on your behalf.

3.7 DRD are committed to regularly review your Debt Management Plan and your personal circumstances, and will contact you from time to time and during the course of your debt management plan. Your creditors and DRD expect you to fully co-operate in providing up to date information regarding your personal circumstances for review purposes. Failure you to do so may cause your creditors to cease the freezing or reduction of interest and/or charges. If DRD are unable to contact you and/or you do not respond to our messages, DRD will assume that your personal circumstances are unchanged and will continue to submit this information to your creditors.

3.8 DRD follows a written complaints procedure, in accordance with Office of Fair Trading and The Financial Ombudsman Service requirements. Should you have a cause to complain about our products or services, you may do so by any of the following methods: - Email: compliance@debtreleasedirect.co.uk. In writing to: The Compliance Department, Debt Release Direct, First Floor, Crown House, Heap Brow, Bury, Lancashire, BL9 7JR. By telephone: 0845 618 8408 for the Compliance department or the DRD website: http://www.debtreleasedirect.co.uk/complaints.asp. The complaints procedure can be viewed at: http://www.debtreleasedirect.co.uk/complaints-procedures.asp or alternatively a hard copy will be sent to you upon request.

Section 4. Your commitment & responsibilities to DRD under this agreement

4.1 Upon request, you will provide DRD with any and all relevant information relating to your finances and personal circumstances, including but not limited to, details of your income, expenditure, your Creditors, and any agreement(s) you have in place or have agreed with them now and any future arrangements. Details of any and all loans or mortgages you have in place now, or applied for. Your dependents and family circumstances and any judgments of any type or sort made against you or any other enforcement action being taken against you.

4.2 All information provided by you to DRD will be truthful and honest. DRD cannot be held responsible for any actions taken by your creditors due to incorrect, misleading or false information provided to us by you. You will provide documentary evidence of any agreements with creditors if requested.

4.3 You will sign any relevant documents of forms of authority required to enable DRD to negotiate with your Creditors on your behalf.

4.4 You will advise DRD of any change in circumstances so that DRD may continue to act accordingly on your behalf. This includes but is not limited to: - a change in personal and/or family circumstances; employment; income and/or expenditure information; any other personal or financial information that may affect your debt management plan.

4.5 You will keep DRD informed of any direct contact between you and your creditors, and send DRD any documents or correspondence received from them within 48 hours of receipt.

4.6 You will assist DRD to maintain the effective and efficient running of your Debt Management Plan. For example, providing information from your creditors and forwarding the same to DRD.

4.7 You agree to maintain the monthly payments to DRD, normally by Standing Order (Other payment methods are available, please ask you advisor). These payments being transferred or deposited into your DRD client account on the same date each calendar month, and will advise DRD should you need to change, amend or be unable to comply for any reason. Failing to make the payments to DRD without prior notice will be regarded as a breach of these terms and conditions, and may result in the cancellation of this agreement and you falling into arrears or further arrears with the possibility of enforcement action being brought by your creditors. DRD cannot be held responsible for any actions by your creditors in the event of a failed payment.

4.8 By entering into a Debt Management Plan there is a possibility that your existing bankers may not wish to continue providing you with a banking facility. DRD can provide further information on an alternative bank upon request.

4.9 You will be responsible and shall remain responsible for the payment of any and all expenses and/or liabilities that are not, or cannot be, part of your debt management plan. This will include, but is not limited to, your mortgage, any secured loans, hire purchase agreements and ongoing household bills.

4.10 You will remain in contact with DRD, and advise DRD of any change of address or contact numbers. There may be a need for DRD to contact you, and will leave a message or text if you are not immediately available. Failure to return our calls or respond to our messages may be considered a breach of these terms and conditions.

Section 5. How we handle your money

5.1 All payments made by you to DRD will be held in a separate and nominal client account. Once your payment has been cleared, and after deducting our monthly fees, the balance will be paid proportionately to your creditors in accordance with your Debt Management Plan. DRD will issue confirmation in writing of all payment transactions on a monthly basis.

5.2 Payments to your creditors will typically be made within 5 working days from receipt of cleared funds. You should ensure that all payments reach our account as agreed in order that the funds are cleared in time for DRD to make payment to your creditors. Failure to do so may attract a charge or penalty for late payment, over which DRD have no control and therefore cannot be held responsible for.

Section 6. What you will pay DRD for our Services

6.1 A set-up fee. Covers the initial cost of setting up your Debt Management Plan and is typically twice your calculated monthly disposable income. If you do not have the full amount available, the payment of the set up fee may be spread over the first two payments into your Debt management Plan. (Please be advised during this time your accounts with each creditor will fall further into arrears) Following receipt of all or a minimum of 50% of your Set-Up Fee, a token payment will be made normally within 5 working days from receipt of cleared funds and fully completed paperwork being received. However, your creditors will not receive pro-rata regular monthly payments from DRD from any money received as part of your set-up fee. Pro-rata monthly payments will be distributed from the cleared payment received following the successful completion of your set up fee.

6.2 An on-going monthly management fee. This is taken upon receipt of funds from you, from your monthly payments to DRD in advance of distribution to your creditors. Monthly management fees are calculated as follows:-

a. Where your calculated disposable income is less than £130 per month, a monthly management fee of £35 will apply, regardless of how many creditors you may have.
b. Where your calculated disposable income is equal to or more than £130 per month the monthly management fee is dictated by the number of creditors you have, as follows:
• Up to 5 creditor accounts = £40 per month.
• Between 6 and 10 creditor accounts = £50 per month.
• Eleven or more creditor accounts = £60 per month.

6.3 DRD reserve the right to review our fees at any time. If it is decided that your fees are to change, DRD will inform you in writing at least 1 calendar month before your next payment is made.

Section 7. Your right to cancel the Agreement

7.1 You have the right to cancel without penalty within the cooling off period as shown in section 2.5.

7.2 You may cancel this agreement at any time outside the cooling off period by giving DRD two weeks’ notice in writing. If you cancel this agreement outside the cooling off period shown in section 2.5, you will not receive a refund of any payments distributed by DRD to your creditors on your behalf.

7.3 Following your signing, you may withdraw from this agreement, if evidence provided by you identifies that the fees or your monthly payments or term of the contract differ significantly from the initial estimates.

Section 8. Our right to cancel the Agreement

8.1 DRD may cancel this agreement at any time by giving you two weeks’ notice in writing.

8.2 DRD will only cancel this agreement if: -
a. You fail to make two successive monthly payments
b. You fail to adhere to these terms and conditions
c. You become bankrupt or a bankruptcy petition has been filed against you
d. The information you have provided proves to be false or misleading
e. DRD cannot continue the agreement due to an event or something beyond our control

Section 9. Effect of cancelling or ending this Agreement

9.1 Any cleared monies paid to DRD after the termination of the agreement will be forwarded to your creditors.

9.2 You will still be responsible for any and all outstanding amounts to your creditors, who may then cease to reduce interest and/or charges and re-commence legal procedures.

9.3 Our obligations will end on midnight of the date of termination of the agreement.

9.4 Any documents received by DRD in relation to the agreement will be forwarded to your last known address.

9.5 All documents and files will be kept in accordance with the Data Protection Act.

Section 10. Data Protection

10.1 All data and information held about you will be treated as strictly confidential and in accordance with the data protection act and our group privacy policy. It will only be used to administer and manage your Debt Management Plan and associated services within the Release Money Group of companies. Our privacy policy can be viewed on our website at: http://www.debtreleasedirect.co.uk/privacy_policy.aspx. Alternatively a copy can be sent to you on request.

10.2 Please be advised that DRD record may record both inbound and outbound telephone calls for monitoring and security purposes.

10.3 You have a right to view any information that DRD hold about you, and may request a copy. This process is known as a data access request. Any request for a copy of any information DRD hold about you should be made in writing stating what information you require, and accompanied by a cheque for £10, payable to Debt Release Direct Limited. Write to: The Compliance Department, Debt Release Direct Limited, First Floor, Crown House, Heap Brow, Bury. BL9 7JR.

 

Section 11. Miscellaneous

11.1 These terms and conditions are written in accordance with current legislation and UK law.

11.2 DRD will not make any payment to your creditors without having secured cleared payments from you.

11.3 DRD do not give legal advice. If you require legal advice you should contact a suitably qualified individual such as a solicitor.

11.4 DRD do not negotiate on your behalf any reductions or payments for mortgages, secured loans, utility bills, current year council tax.

11.5 If you have any questions or matters that require clarification, you should contact DRD as soon as possible.

11.6 If any part or provision of these terms and conditions is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

"the validity or enforceability in that jurisdiction of any other provision of these terms and conditions;
or
the validity or enforceability in other jurisdictions of that or any other provision of these terms and conditions."