We are proud to have helped over 10,000 people with their financial difficulties. We are committed to providing the highest standard of customer service. We are very happy with the number of positive reviews we receive from clients but we are always looking to improve. We take all client complaints very seriously, and act promptly to respond to complaints, rectify the situation if possible and make the improvements necessary to our working practice. If you would like to make a complaint visit our complaints section here.
What is the fee for your debt solution?
A fee will charged for the debt solution appropriate to your circumstances. However, it will be paid from the agreed monthly contribution which you will pay whilst the solution is ongoing.
Will my credit score be affected?
Any debt solution will affect your credit score, although if you are experiencing financial difficulties it may be the case that your credit score is already affected. Before a formal application is made for any solution your debt adviser will explain all of the advantages and disadvantages of each solution so you can make an informed decision.
Debt Management Plan
A monthly management fee will be charged of 17.5% of each payment, subject to a minimum of £25 and a maximum of £90. This fee covers the month-to-month running of your debt management plan, including distributing payments and taking care of correspondence between you and your creditors.
This fee also covers our regular reviews of your circumstances – normally once every 12 months (or any other time your circumstances change). If your situation has changed and your ability to keep up with your debt management plan is affected, we can talk to your creditors about changing your payments accordingly.
We do not charge any upfront fees in our IVAs. Payments are only made if and when your IVA is agreed by your creditors. If for any reason whatsoever your IVA is not accepted by your creditors you will have nothing to pay. We will also help to find you an appropriate alternative debt solution.
Nominee & Supervisor’s Fees
Fees in an IVA are defined as Nominee and Supervisor’s Fees. Fees incurred for Individual Voluntary Arrangements are dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominee’s fees relating to assistance given to prepare your proposal and Supervisor’s fees which relate to the ongoing monitoring of your IVA. Fees are drawn from your monthly contribution or other assets which form part of your proposal. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.
The fees payable in an IVA come from your monthly contribution. Your monthly contribution will be an amount you can afford. This money is paid into your IVA account and is distributed to creditors as defined in the proposal. Our fees are also paid out of the same account as agreed with your creditors who set our fees at the beginning of the arrangement. You will be provided with a copy of the proposed fees prior to the meeting of creditors.
This is a fixed fee that will cover the work that goes into setting up your IVA:
- Creating your IVA proposal. This is the document which must be approved by enough of your creditors for your IVA to start. It defines the proposed terms of the IVA: how much you would pay, what each creditor would receive, etc.
- Setting up the creditors meeting. This is when your creditors will formally approve your IVA proposal, reject it, or request changes to it.
- Assessing any suggested changes. If any creditors have requested changes to your IVA proposal, your IP will advise you on whether you should accept those changes – or consider a different approach to your debt problems.
Your first few monthly contributions (from 3 – 5 monthly contributions) will go towards paying the Nominee’s fee before your creditors receive any money.
The Supervisor’s fees will cover the ongoing supervision and maintenance of your IVA for its duration. A typical IVA lasts for five years.
This fee covers the costs of:
- Relationship Managers who will deal with any day-to-day issues that arise, ensuring your IVA runs smoothly.
- Your Insolvency Practitioner (IP) who will carry out regular reviews of your IVA and address any more serious issues that come up – if, for instance, your financial situation worsens, and you need your IP to arrange an IVA variation (a legally binding change to the terms of your IVA, designed to help you bring the IVA to a successful conclusion).
Again, these fees are set and agreed by your creditors and come out of your monthly payments. You will not have to pay any more than what you can afford. This fee is generally 15% of the overall payments and is based on your completion of the IVA.
Note: Keeping up with your monthly payments in an IVA is vital – if you fail to, your IVA may fail, leaving you liable for the remaining balance and any costs already incurred. If you do experience any difficulties with your IVA payments please contact your case supervisor as soon as possible.
IVA Fees, Costs & Contributions
An individual who owes £30,000 contacts us and an IVA is recommended as his best solution.
He can afford £230 per month to offer to his creditors. The term of his IVA is 60 months
Debt amount £30,000
Monthly contribution of £230 for 60 months £13,800
Nominee’s fee £1,150
Supervisor’s fee £1,898
Supervisor’s costs £65
Total paid by client (including fees above) £13,800
Total unsecured debt written off on completion £19,313 (65%)
Whilst this example details the fees and costs charged please bear in mind that each IVA is different and dependent on your individual circumstances.