Frequently Asked Questions

What happens initially when I contact you?
Once you have completed an application, an adviser talk to you about your situation and answer any queries that you may have about the Debt Management, IVA or Bankruptcy service and to arrange with you a convenient time for us go through your financial details. The time can be arranged whenever it is convenient for you, including weekends or in the evenings if you are unable to do this during the day. The call usually takes no more than 30 minutes and you will be under no obligation to go further should you choose not to. If at all possible we will ask you to have the following information available:

• Details of ALL of your creditors, including account numbers and recent balances
• Your income and expenditure details
• Details of any county court judgements
• Mortgages and secured loans
• Hire Purchase Agreements and Leases
• Maintenance and CSA payments

Who administers the Debt Management Plan?
Here at the Kingston Debt Solutions you will be assigned your own Personal Account Manager who will look after you every step of the way. You will be provided a unique reference number and be assured you will not be passed around a call centre.

Is this a loan?
No. We neither lend you money nor pay off your debts. Your payment plan is a solution that allows you to repay your creditors at a monthly rate that you can afford. If you do not make payments into the plan, we cannot make payments to your creditors.

How can I pay into my Plan?
Payments can be made either weekly or monthly. There are three methods you can use:

• Cheque
• Standing Order
• Debit Card transactions

How do I know I'm getting the best advice ?
If your circumstances are not best served by a Debt Management programme, we will advise accordingly. As we offer all types of debt solutions we are able to offer no obligation advice as to the best course of action.

My reduced payments are less than my interest charges, does this mean I'll be paying forever?
Many lenders will freeze interest charges when dealing with debt managers. This they do this because they can see that you are making a genuine effort to pay your debts and are doing so with the assistance of a professional organisation

Will I be charged if I change my mind?
We will provide you with a 7 day “cooling off” period from the date you accept our Terms and Conditions for Debt Management or, if earlier, from the date your first payment is received. If you decide not to continue with the plan within the first 7 days, we will refund your initial fee.

Can I cancel my plan at any time?
Yes. All you have to do is give us 2 weeks written notice of cancellation.

What happens to any money held for distribution if I cancel?
We will refund to you any monies you have paid us which we have not yet been distributed at the time you cancel with us.

Do creditors always accept reduced payment offers?
Creditors do not have to accept any offer of repayment below the contracted minimum. However it is our experience that mainly they are prepared to accept reduced repayment offers where we are able to demonstrate that the offer we have made is reasonable and that you are committed to repay your debts by use of debt management service

How do I know my debts are being paid? Once up to date balances from your creditors have been received, your monthly payments between them are pre-portioned based on how much each is owed. A statement showing how much each creditor will receive will be issued. This remains fixed unless your circumstances change. You will be issued a statement showing all transactions on your account. In addition to this, you will still receive statements from your creditors.

What if my creditors continue to pursue me for payments?
Certainly in the short term, your creditors will continue to take action to recover your debts. Do not ignore them. Deal with calls politely, informing creditors that you have appointed Kingston Debt Solutions to act on your behalf. You should forward any letters to us to deal with on your behalf.

Will my creditors/lenders definitely accept your proposed debt management plan?
Creditors and lenders do not have to accept our proposals, but most are willing to accept them if we can prove it is beneficial and agreeable to both parties. Please note that there is no guarantee that existing or threatened proceedings will be suspended or withdrawn. Your creditors may also continue to issue default notices and add additional costs to your debt. Please be assured that we will do all we can to ensure your creditors understand the difficulties you are in, to ensure the best possible outcome.

My bank says they will not deal with you and will take me to court if I use you. What do I do?
A creditor cannot refuse payments from a debt management company and then take you to court for non-payment. Some credit companies may prefer not to deal with us so they can apply more pressure to you, however you have a legal right to have anyone you wish deal with your finances.

My bank says you have not written to them, but you say you have. Why?
Employees of a creditor's collections unit have one job, to try to get you to pay money. Unfortunately, some will do this any way they can. Once they acknowledge we are dealing with the account, they know they have to negotiate through us. If they tell you they have not heard from us then they have more leverage. If they make you think we are not doing our job properly, they will convince you to cancel the agreement with us, and then they can use any tactics they like to get the money from you.

My bank has said they are going to send a bailiff round to collect their money, can they do this?
No. A bailiff can only be instructed and sent by a County Court or Sheriffs office, this means a bailiff can only call if you default on a court order. A debt collector may try to trick you by saying, “if you don’t pay this bill, we could send a bailiff round” this is not true unless you’ve defaulted on an earlier court order.

Can I keep one of my credit cards just for emergencies and not count this debt or credit card as part of a debt consolidation programme?
No. If any of your other creditors find out that you are treating another company better than them, they will reject any offers made to them and probably look to collect money through court action. All creditors have to be treated equally.

Will I receive a Default Notice? By coming on plan with us, you will be in default on your original credit agreement and your creditor is therefore entitled to send you a Default Notice. Creditors send out Default Notices to protect their own legal position.

Will the plan affect my credit rating?
Because taking out a plan will result in your not making the contractual repayments on your unsecured debts, you should expect that your credit rating will be adversely affected in the short to medium term. However, your credit rating may already be poor if you have arrears or a history of missed or late payments. This will normally be recorded on your credit file and will normally be retained for 6 years

Will you be dealing with every company I owe money to?
No. Some of your debts may be regarded as priority debts due to serious consequences if payments are not made. An example is your mortgage or utility bills. These will be taken into consideration when calculating what amount is available to distribute to your other lenders and it is very important that you continue to pay these in full yourself.

Will the plan prevent my creditors taking further recovery action?
We cannot guarantee that your creditors will not take further action, including court action to recover debts from you but, if they do, we will help you respond so that any repayment that is required is within your ability to repay

Can I take out a plan if I already have CCJs against me?
Yes. You can even use the plan to make payments against any existing CCJs that you have. Just make sure that we know exactly what your current situation is when you talk to us before coming on plan.

Can I take out a plan if I am a home-owner or tenant?
It makes no difference whether you are a tenant or home-owner or even if you are still living with your parents.

Do I have to tell my partner?
We believe that it is always best to be honest with your partner. However, you only have to tell your partner if you have shared debts and/or you need your partner’s income to be taken into account to support the plan.

Does the Payment Plan cover all of my debts? No. A debt repayment plan can cover your unsecured debts, arrears and in special cases overpaid benefits, benefits which are being reclaimed, unpaid council tax bills and water rates.

What is the difference between a secured and unsecured debt?
A secured debt is a debt secured against an asset that you own. Typical secured debts will be a mortgage, a secured loan, a car loan, etc. An unsecured loan is any loan not secured on an asset, such as a bank overdraft, a personal loan, a credit card, store card, etc.

Will I be credit checked before acceptance?
No. Since we do not lend you any money, we do not need to credit check you.

How are the fees collected?
Once you have made payment for our initial set-up fee and your first months contribution we will make a monthly distribution to your creditors on your behalf and will deduct our fee for that distribution. If we do not make a distribution, we do not take our fee.

How long will the plan take?
Because you are making reduced payments on your debts it will take longer for your debts to be paid off. Repaying debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term. As part of our initial consultation with you, we will provide you with an estimate of the likely time you will be on plan. Please understand that a Debt Management Plan is not an overnight solution.

How much does the service cost?
We charge an initial set-up fee (which is equivalent to two monthly payments). These set-up fees are retained by us for setting up your plan. This may result in a delay of up to two months before creditors receive payment, which will place your accounts into arrears or further into arrears. We then take a monthly management fee equivalent to 17.5% of each payment you make to us, subject to a monthly minimum of £25 and a monthly maximum of £100. Specific costs will be notified to you in advance. There are no other hidden charges. The set-up fee includes:

• Drafting of your payment plan
• Communication with your creditors, either in writing or by telephone
• Calculation and issue of the reduced payment proposals
• Preparation of the financial statement

How do I know I'll be able to maintain the reduced monthly payments?
Any repayment proposal is agreed between you and your debt manager in advance. It is based on the information you have supplied and takes into account all your finances. That is why it is imperative that you include all the information asked for.

How long does the Plan last?
That will be determined by how much is owed and the amount you can realistically afford to pay your creditors each month. Remember this is a guideline and is based on the figures you give us. You'll be given an indication of the likely length of the plan at the outset, but it will always be dependent on your creditors freezing interest and other charges on your accounts and your circumstances not changing.

How much will I have to pay?
This depends upon what you can realistically afford to pay - we will run through a thorough financial statement taking into consideration all of your essential bills.

What happens if my circumstances change?
If this should happen whilst the plan in place, please let us know immediately. Depending on your situation a revised repayment plan will be negotiated with your creditors. As a matter of course, we will annually review your plan with you and amend your monthly payment if necessary.

Do I need to keep paying my creditor's if I am setting up a Debt Management plan with you?
Until your debt management plan is established you must keep paying your creditors what you can afford each month. You may want to offer them a token payment until the plan is complete.

Can I apply for more credit before the Debt Management plan is completed?
It is IMPORTANT that you do not increase your debts at this stage by obtaining further credit or borrowing more money through existing facilities.