The process commences with a review of the customers current debts.
The Plan intends to write to each customer’s credit provider and ask them to remove any interest, charges and fees if Legal team find that they have been applied unfairly. The review will then continue on legal arguments based on proof of debt, validity of debt, correct procedural signup (for both the primary customer and any guarantors).
Engaging Legal Review Plan gives the following benefits to the customer:
• Assets are protected while Legal team disputing the debt. Which means no charging orders or
repossessions can continue until the debt level is accurately determined.
• Nuisance communications will cease; all creditor communications should be diverted to Legal team.
• No additional CCJs can be registered and in some instances, Legal team will request already registered
defaults/CCJs be removed/corrected on the customer’s credit file.
• Legal team’s fees are fixed but the customer can pay the fees monthly (based on their disposable
income and what they can afford to pay).
Legal team to get the customer to their correct debt position; in some instances, this will result in the entire balance being written-off, but a successful audit will often lead to an average write- down of around 60%-80% of the original debt level within 12-24 months. During this time the debt is in dispute and therefore token payments will be made to the creditors by the customer in order to reserve their current credit disposition.
Once the accurate debt level has been established, Legal team will make an arrangement with the creditor based on the customers disposable income and the customer will start to repay the creditor at a comfortable level; Legal team will work with the customer until they are debt free and a reasonable expectation would be to achieve this within 3-5 years.
In order to qualify, the client’s circumstances must adhere to the following criteria:
• Struggling to maintain payments towards unsecured debts/currently in arrears.
• Minimum debt level £1500.
• Minimum disposable income of £60/month.
• Minimum 1 lines of credit.
• Debt must be a minimum of 6 months old.
• Must be employed/fixed income.
If a client does not qualify or wish to proceed with a Legal Review, Legal team may still be able to discuss an alternative solution to customers with these credit lines.
Legal team may enter into early settlements/negotiated settlements if the credit was taken within the last 6 months or if the customer has utility claims from a previous address or a previous supplier. It may also be suitable if the customer has any non-consumer credit debts such as parking fines or council tax
arrears. The first role that the Legal team will undertake is to request that all interest and charges are frozen whilst Legal team assess the customers affordability and financial position. Legal team will then provide the creditors with an up to date financial statement and a statement of needs to support the customer’s case, with the view to having new and affordable repayment options in place for the customer to maintain. Under Negotiated Settlements, Legal team can support the following types of debts:
• Mortgage Arrears.
• Secured loans.
• Rent Arrears.
• Council Tax Arrears.
• Utility providers (Gas/Electricity/Water).
• Service providers (Phone/TV/Internet/Subscriptions/Childcare).
• Debts owed by a Limited Company.
• Debts owed by a Sole Trader who is still trading.
• Fines.
• Debts owed to the government (HMRC).
• Student Loans.
• Personal Loans between friends and/or family members.