What we will do
MoneySave Solutions provides regulated debt advice and if your preference following an assessment of all the debt solutions available is a commercial Debt Management Plan then we will use the services of affiliate company, Atlantic Finance (UK) Limited, trading as Atlantic Financial Management. Atlantic is also regulated by the Financial Conduct Authority and a DEMSA (Debt Managers Standards Association) member that is subject to the DEMSA code of conduct, approved by the Trading Standards Institute (TSI).
The fees that are applicable to an Atlantic Debt Management Plan are detailed in the table below and the Terms of Business that are associated with the Debt Management Agreement are available on our Debt Management Plans webpage. Our average debt level for a DMP client is just over £17,000 with 6 creditors.
Atlantic does not charge a set-up fee for a Debt Management Plan.
We do charge a higher monthly management fee in the first 6 months of the plan because of the level of work required to:
- negotiate with your creditors
- confirm your draft and final statement-of-affairs with you and your creditors
- commence payments to creditors in the first month of the plan
- ensure that your credit report is being properly updated
- issue monthly statements
- deal with any legal paperwork
- generally monitor progress and communicate the outcome of our negotiations
The monthly fee that we need to recover in the first 6 months is based upon the number of creditors Atlantic is acting upon and the level of your disposable income. The monthly fee is reflected as a monetary amount. The remainder is disbursed to your creditors from our client account within 5 business days of cleared funds. If you elect to pay us more frequently than monthly (e.g. weekly) we obtain your consent to distribute to your creditors once a month on specified date agreed with your creditors.
After the first 6 months, Atlantic charges a reduced monthly fee, again based upon the number of creditors they are acting upon and the level of disposable income available. Total fee caps apply for the duration of your Debt Management Plan with Atlantic. All fees and the estimated duration of your plan are disclosed verbally and in writing. You are subject to an advised review at least annually.
In line with the Financial Conduct Authority (FCA) Consumer Credit Sourcebook (CONC), Atlantic operates a vulnerable client policy and a client will be assessed against this policy based upon the information obtained in your financial review with our debt adviser. In order to ensure the suitability of the debt advice, this may involve additional questions to establish whether a debt solution with Atlantic is the most appropriate advice.
1. Your goals
We establish your financial goals, personal circumstances, approach to money management and concerns that you may have.
2. Your information
We collect all relevant personal, household and financial data to complete your Financial Planner. Where available, we will review your Experian credit file.
3. Your needs
We assess your current position and how you have arrived there, with the intention of making recommendations on the debt solution that will best suit your needs. We also aim to increase your disposable income.
4. Suitability assessment
Having identified potential debt solutions for you, we need to assess your attitudes to risk and how this affect your preferences. This is particularly true in the case of insolvency.
You decide whether to act now or whether review the action plan set out my the MoneySave advisor. We can complete the paperwork to initiate your debt solution and PPI reclaim at the meeting.
6. Reviews & account management
We aim to meet you on an on-going basis. We assess progress on your overall financial plan and any changes in circumstances and actions required by either you or us
To establish the most suitable debt solution to your personal circumstances and preferences, we will need to complete a full face-to-face or telephone financial review:
- We establish whether there are emergencies or priorities ahead of your debts that need to be dealt with
- We determine your financial circumstances, the cause of these and your level of financial vulnerability
- We complete a statement-of-affairs with you and list all debts, including a review of the unsecured creditors and lenders that you owe money to, which should be visible on your Experian credit report
- We determine which payments are a priority: - Mortgage or rent - Secured loans - Utilities - Council tax - Priority arrears payments - Court enforced payments ›› We are able to offer legal support on any pending court action, such as county court judgments (CCJs)
- We establish an affordable household budget using industry recognised ‘trigger figures’, this will determine whether there is a deficit
- Assessing whether there are any assets that may need to be taken into account, this can include PPI reclaims
- Taking account of your preferences, to establish the debt solutions that you are eligible for
- Present the debt solutions available for you to make an informed choice
- Any fees applicable will be clearly explained before you commit to any Atlantic debt solution through a written contract and you have a right to a 14 day cooling off period
- Whilst creditors are not obliged to freeze interest & charges, in over 85% of cases that Atlantic Financial Management are acting upon, they have done so. Where a lender does not freeze interest & charges the amount you owe and the period over which you repay that credit account may increase, though requests to freeze interest & charges will continue once several payments have been made to your DMP
- Whilst entering into a DMP can adversely affect your credit rating it is our experience that those who approach us already have an impaired credit record. By entering into a DMP you will be showing your creditors that you are taking a responsible attitude to resolving your financial problems and this could help you in the future
- Rescheduling debts can sometimes lead to an increase in the total sum to be repaid and can extend the debt repayment period, though our experience has shown that for revolving credit (e.g. credit cards), where interest is frozen, that the opposite may be true in a DMP, with the repayment period being substantially shorter when compared to minimum contractual repayments
- The pros and cons of a DMP can be reviewed in the document 'In debt? Dealing with your creditors‘
- If you are unhappy with our service then you have the right to independent redress through the Financial Ombudsman Service (FOS), which is explained in our complaint policy
- Any changes in circumstances, positive or negative, will be taken into account with regard to the repayments offered to your creditors and the duration of your DMP.