Frequently Asked Questions

What is a Debt Management Plan (DMP)?

Debt Management in this case means we will take over the management of all your debts for you. We will speak to your creditors and negotiate lower monthly payments.

How much does a DMP cost?

We charge a flat fee of £29.38 per month. There are no other hidden charges. We will discuss other options such as Citizens Advice Bureau (CAB).

How much will my monthly payments be?

Your payments will be based on your disposable income, the money you have left over after you have paid all your priority bills. The minimum payment per month is £50.00 (including our fee).

How long will I be in the Debt Management Plan (DMP)?

Once we know how much you owe and what your monthly payments are going to be. We can estimate the number of months it will take to clear the debt. However you can increase your payments at any time when your circumstances improve, or offer a full and final settlement in which you may obtain a favorable discount. Full and final settlements could mean a discount of between 50% and 80% in the balance. We offer this service for FREE to all our Debt Management customers.

What can I add into a Debt Management Plan (DMP)?

You can add unsecured Loans, Credit Cards, Store Cards, Catalogues, mobile phone contracts, utility bills from a previous address and water rates arrears. We will try to offer help with many other debts including Tax Credit overpayments and Council Tax.

What cannot be added into a Debt Management Plan (DMP)?

Secured loans like mortgages or HP agreements cannot go into a DMP but we will always offer help and advice. If security is removed then the debts can be added into the DMP. Tax problems such as Inland Revenue, Council Tax (with Bailiffs) and VAT issues would be looked at on a case by case basis. But we will always be on hand to offer help and support.

Can business debts go into a Debt Management Plan (DMP)?

Yes. If the business is no longer trading and you have personal liabilities. If the business is still trading or there are other issues we can advise on a case by case basis.

Are there any up front fees?

The first month's payments less the management fee is a refundable deposit and would only be lost if the DMP was cancelled. For example a DMP of £100 per month, £29.38 fee + £70.62 refundable deposit. A right to cancel is issued once the first payment has been made and if a customer wanted to change their mind, all the money would be refunded. In this example, the full £100 would be refunded. Once the right to cancel has expired if the customer was to cancel the DMP the deposit would be lost (in this example £70.62). Once the customers indebtedness is settled, either by monthly payments or full and final settlements the deposit would be refunded (in this example £70.62).

If something else turns up after the DMP is set up, can I add it in?

Yes. After the plan is set up, if an additional credit agreement is found which was missed, it can be added. An increase in payments maybe required in certain situations. We would recommend that the customer contacts us to discuss any changes they wanted to make. We will always try and help a customer with any reasonable requests.

If my circumstances change, can I increase or reduce my payments?

Yes. If your circumstances improve you can increase your payments and the debts will be cleared sooner. If your circumstances deteriorate you can reduce your payments subject to a minimum of £50.00 per month.

Can I offer to settle the creditors in full?

Yes. You can offer a reduced amount to your creditors, or we can do this for you for FREE. We have obtained discounts for customers of up to 80% off the balance.

Will I be taken to court?

It's rare to be taken to court while in a DMP, but it could happen. We would complete all the court forms on your behalf and discuss the possible options on a case by case basis.

Would I have to go to court?

It's unlikely you would have to go to court as because the majority court submissions can be done writing. If there was action that you wanted to defend then an attendance at court may be required.

Will bailiffs call at my house?

For bailiffs to call at your house, a judgement would have to be obtained and then a warrant of execution. A bailiff's order could then be obtained Bailiffs are the favorite collection strategy of local councils for non-payment of Council Tax, judgement is obtained in the magistrates court. Bailiffs orders obtained in the County Courts can be overturned in favor of an instalment order.

Can my house be repossessed?

If you are not paying loans secured on your house, there would be a risk of your house being repossessed. Where a judgement has been obtained on an unsecured loan the lender could apply for a charging order followed by a forced sale. Forced sales on unsecured loans are rare and could be fought in favor of an instalment order.

I have just been issued with a County Court Judgement (CCJ) can you help?

The most important thing is to not ignore a County Court Judgement (CCJ) and act quickly. If you fail to reply to the court forms, judgement will go against you by default. This could then lead to further legal action, such as:

Attachment to earnings.
Bailiff Order.
Attachment to property.
Bankruptcy Order.

Yes. We can help by requesting an instalment order or defending the claim. However time is limited.

I have just been issued with a Statutory Demand can you help?

The most important thing is to not ignore a Statutory Demand this can be a prelude to making you bankrupt. Many debt collection companies use a Statutory Demand to scare the debtor into making contact and making payments. So in some circumstances it could be a bluff; however can you take the risk? Bankruptcy could have a devastating effect on your finances. You could lose your property, assets and bank accounts. If you work on certain occupations you could lose their job and if you're a company director you would be required to resign. In many cases this would be serious financial meltdown. Yes. We can help if the bankruptcy has been petitioned by a creditor.

Will I be kept informed?

Yes. We send out monthly statements and annual summaries showing payments in and out and comments on our progress. You can always contact your personal advisor who is on hand to help in any way. We DO NOT have call centres.

Can I cancel the DMP once it has started?

Yes. You can cancel with a full refund during the first seven days after your first payment. You can cancel at any time but you would lose whatever deposit you had paid.

Will a DMP affect my credit file?

Yes. Reducing payments on credit agreements will have an adverse effect on your credit file. This will mean obtaining credit in the future could be difficult. However not every Company registers with credit file agencies.

What do I do if somebody calls at my house?

It is rare for debt collection companies (apart from bailiffs) to call at your home. We provide open letters, addressed to "To whom it may concern". These letters basically say do not call at this address again and invites whoever is calling to contact us. If they carry on calling we would complain on your behalf as it could be construed as harassment. These letters are mainly designed for home collection companies. It's very rare for debt collectors to call at your home; however they will threaten in letters that somebody will be calling. This tactic of threatening a home visit is designed to scare you, the customer, into contacting them to head off any such visit.

What help and support could I expect from Credit & Loan Management Ltd?

We always offer all our customers personal help and support. We understand the difficulties and stress that debt has on people; we always aim to remove as much pressure from the customer as possible. Our customers have a dedicated advisor (not a call centre) who knows the customers circumstances and can offer specific advice to suit their needs. Many of our customers recommend us time and time again to friends and family. We are committed to offering the best service possible, which ensures we continue to be highly recommended. You can have a Debt Management plan with Credit & Loan Management Ltd if you're working or in receipt of benefits. We welcome homeowners and tenants. You are 100% guaranteed to be accepted. We will offer help and advice no matter what the situation.

Will interest and charges be stopped?

Creditors can add various amounts of interest and charges onto an outstanding debt. These can be difficult to stop and sometimes the interest and charges can be justified. For example: If a customer takes out a credit card and quickly runs up a debt of £1,000, then contacts a Debt Management company. The credit card company has issued £1,000 of credit and has added no interest or charges. In this case you would expect interest to be added which you could argue is justified. There is a point however when it becomes unacceptable, we would then complain on the customers behalf and if necessary we would suspend payments. In our view there is little point in a customer struggling to pay for example £10.00 per month when the creditor adds £20.00 per month onto the balance. There also maybe other ways to remove interest and charges from an outstanding debt see "Can I offer to settle the creditors in full".

What do I do about the constant telephone calls?

Many banks and debt collection companies have call centres in the UK and abroad. They can telephone customers seven days a week and at different times of the day. These calls can become very stressful. We would always recommend that customers change their telephone number and go ex-directory. Landline Numbers are very easy to change and often free. Pay As You Go mobiles are free or very inexpensive, simply put a new sim card into the phone. Contract Mobiles can be a bit trickier unless you're out of contract, but its still worth asking your provider. They may charge a small fee but it's worth it. You could even consider not having a landline at all; it stops the telephone calls and it's one less bill to pay.

What do I do about the threatening letters?

We provide pre-paid envelopes and encourage all our customers to simply place any letters they receive into the envelopes and post them to us. These letters can look very scary, threatening court and the consequences following a successful judgement. Many of these letters are automated and they are sent out by the thousand. Your creditors are protesting at the reduced payment, you would not expect anything less. We reply to these letters and monitor any balance information they provide.

What do I do if I owe money to my bank?

We would recommend that if the debt is with your current bank account provider, that you change your bank account. To open a bank account, go to any high street bank. You will need proof of identification (driving licence or passport) and proof of address (recent household bills). Most people should be entitled to open a basic bank account. Many loan agreements with banks include the clause that they are funded by your current account. This will probably mean you will not be able to cancel either the direct debit that funds it or close your current account. This will result in a bank continuing to request payments from what a customer would consider a closed bank account. This may either create or increase an overdraft problem. The overdraft can be added to the debt management plan.

What is my responsibility?

It's your responsibility to inform the Credit and Loan Management Ltd of any changes in your circumstances. Co-operate with any review of your circumstances on a regular basis or on request from your creditors. You would be responsible for regular payments and understand that non-contact would be considered cancellation of the agreement.

If you have any further questions please

Call: 0800 0727 844 or Email: questions@creditandloan.co.uk

Arrange a call back from one of our friendly consultants.

Debt Calculator

Take the first step in controlling your finances with our easy to use Debt Calculator. In just a few moments you can work out your monthly income and expenditure.

We can help you manage ALL your Loans, Credit Cards, Store Cards, Catalogues, Mobile phone contracts, County Court Judgments and even some utility debts.