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Important Definitions
| Annual Review | A full re-assessment of your current financial circumstances on the anniversary of your commencing on the Single Payment Plan or the anniversary of your last full review. |
| Cleared Funds | Means any payments by you received into our Fee or Client Account that can be drawn upon, irrespective of the method of payment, for example; direct debits, standing orders, cash payments by payment card, debit card, bank giro credits or electronic transfers. |
| Client Account | The account where any monies held on your behalf, in respect of your monthly Single Payment Plan (SPP) payments, are kept and which cannot be used for any other purpose in EuroDebt's business. |
| Client Authority Form | These forms are required to be signed by you to give us authority to contact your Creditors and to act on your behalf. In many instances the Creditors do not need to see these forms, as we routinely deal with them under a formal Data Protection Agreement, however, they require to be on record in the event of a request for inspection by any Creditor we are dealing with on your behalf. |
| Client Financial Planner | A detailed statement of your current financial affairs, listing your sources of income and items of expenditure, including Priority Creditors and unsecured Creditors. This is used as the basis of calculating what you can reasonably afford to pay to your Creditors every month and is used as the basis of the EuroDebt Instruction Fee. |
| Creditor | The organisations that you owe money to that are not Priority Creditors. This means all of the people or businesses you have told EuroDebt that you owe money to and who are included in your Client Financial Planner. |
| Debt Management Agreement or DMA | The contract terms that govern the Debt Management Services provided to you by EuroDebt. This agreement must be fair and in plain, legible English. You have the right to withdraw at any time with no penalty. EuroDebt does request two weeks notice to allow proper and professional termination of the agreement with your Creditors and to refund any Cleared Funds not disbursed in the Client Account. |
| Debt Management Company (DMC) | A company licensed under the Consumer Credit Act 1974 that acts as your Debt Manager. A DMC will provide advice on how to restructure debts, alter debt repayments and/or achieve early resettlement of debts. This will normally involve negotiating with Creditors and providing you with a facility to make a single monthly which is distributed to your creditors. This requires regular reviews of your financial circumstances and/or your on-going monthly payments. |
| Debt Management Plan or (DMP) | The DMP, or Single Payment Plan, represents the informal arrangement between you and your creditors whereby EuroDebt administers the reduced monthly payments to your Creditors on your behalf. You make one monthly payment and EuroDebt deducts its Monthly Management Fee and any ASU premium, and then distributes the agreed amounts to your Creditors on a proportional basis, based upon the amount of debt you owe to each Creditor. Each Creditor will receive at least a minimum payment of £2.00. You will receive a monthly statement and, if you have requested it from your Personal Account Manager, a diary log of correspondence for the previous month. In the first statement you will receive details of the total debt you need to repay, the number of creditors and their expected monthly repayments and the total fees payable to EuroDebt over the estimated duration of the Debt Management Plan. |
| Instruction Fee | An initial Fee that is payable by you for setting up the Debt Management Plan and negotiating with your Creditors to accept reduced monthly payments and attempt to get interest & charges on your debts frozen either now or in the near future. The Instruction Fee is calculated using a tariff that takes account of the total value of your debt and the number of creditors. |
| Monthly Management Fee | A monthly fee for; managing your affairs with your listed creditors, providing on-going debt advice, administering payments, issuing statements & correspondence reports, processing correspondence you receive from creditors, dealing with new creditors or agencies when notified and generally acting your best interests over the duration of the Debt Management Agreement. |
| Priority Creditors | These regular payments and payment arrears for your; mortgage, rent, council tax and utility bills. You should not ignore any payment arrangements enforced through a court. |
| Qualifying Debt | The total unsecured debt and the number of creditors listed in your Client Financial Planner. |
| Single Payment Plan (SPP) | EuroDebt's branded Debt Management Plan (DMP). |
Other Definitions
- Fee charging Debt Management Companies (DMCs), like EuroDebt, act on behalf of borrowers to help them clear their debts. They do this by entering into direct negotiations with creditors in order to re-negotiate the repayment of debts over a longer timeframe at significantly lower repayment amounts usually with interest & charges frozen early in the lifecycle of the Debt Management Plan. In return for their services DMC may be paid a set-up fee and on-going monthly management fees by the borrower. EuroDebt charges an Instruction Fee and a monthly management fee once the Single Payment Plan has commenced.
- The borrower is a client of EuroDebt.
- Borrowers typically enter into a Debt Management Plan (DMP), Financial Management Programme (FMP) or Single Payment Plan (SPP) – all have broadly the same meaning.
- DMPs are informal voluntary arrangements, unlike Administration Orders, Individual Voluntary Arrangements (IVAs), Scottish Trust Deeds or Bankruptcy.
- The majority of DMCs do not undertake home visits or face-to-face meetings, they deliver their service from Call Centres. EuroDebt is the exception to this.
24 Hour Freephone 0800 298 9798
€uroDebt Financial Services is a trading style of Pentagon (UK) Limited, registered in England with registration number 03267970 at the registered office and head office address of 7 Franklin Court, Stannard Way, Priory Business Park, Bedford, MK44 3JZ.
Authorised and regulated by the Financial Services Authority (FSA)
Licensed under the Consumer Credit Act 1974 (CCL No: 421901)
Data Protection Reg. No: Z7134790 VAT No.: 694 3030 35