Important Definitions

Add-on Fees

In the event that You request Us to act upon additional credit agreements that are not listed in Your Client Financial Planner and We have already made contact with Your Creditors then an Add-on Fee may apply. You will be advised in writing of any Add-on Fees that are applicable at the current fee tariff and We will require Your authority before acting on any newly added credit agreements. It is probable that any additional credit agreements will require an adjustment to the payment offers to the Creditors with which We are negotiating and possibly disbursing funds to, through your Single Payment Plan (SPP).

Annual Review

The review which We shall undertake each year to establish whether Your circumstances have changed in any material way as a result of which it is necessary or desirable to renegotiate the terms of Your DMP with Your Creditors. In addition We may also conduct a review in the following circumstances:

Change of circumstances If there is a major change in Your circumstances, You must inform Us promptly.
Creditor Requests Should one or more of Your Creditors request a review of Your financial circumstances it is agreed that You will fully co-operate with Us to provide any information or documentation that is deemed necessary to perform that review.

Cleared Funds

Means:

(i) any cash, postal orders or banker�s drafts made payable to Us which We have received from You.
(ii) any monies which We have received into Our bank account or Client Account from You by electronic transfer (such as by standing order, direct debit, payments via Allpay or bank giro credit transfer and which have not been returned unpaid within four working days).
(iii) any cheques which We have received from You which have not been returned unpaid within seven (7) working days.

Client Account

The account where monies held on behalf of You are kept and which cannot be used for Our own business purposes. This account is non-interest bearing.

Client Authority Form

The form detailing Your income and expenditure completed during Your meeting with Our regional advisor and which forms the basis of Our negotiations with Your Creditors before completing Your final Statement-of-Affairs when actual debt balances are known.

Client Authority Letter

The letter of authority which You sign at Your meeting with Our regional advisor to give Us authority to contact Your Creditors and to act on Your behalf.

Common Financial Statement

This represents Your final signed Statement-of-Affairs that is submitted to Your Creditors. The Common Financial Statement is a budgeting tool that can be used by licensed advice agencies to make debt repayment offers to Creditors on Your behalf. It provides an accurate overview of Your income, expenditure, assets and liabilities in an industry standard format.

Cooling off period

The period of fourteen (14) calendar days between Your signing of Your Debt Management Agreement (DMA) and Us starting to act for You. During this period You have the right to cancel this agreement and receive a refund of all monies You have paid Us to date. You have the right to ask Us to waive the cooling off period if You wish Us to start acting on Your behalf immediately.

Creditors

The organisations to whom You owe money that are not Priority Creditors. This means all of the people or businesses You have told Us You owe money to and who are included in Your Statement-of-Affairs and Single Payment Plan (SPP).

Debt Management Agreement or DMA

The Agreement which forms the contract between You and Us for the provision of the services to You.

Debt Management Plan or DMP

The arrangement which We negotiate with Your Creditors to achieve repayment of Your debts.

Debt Management Service

The Services which We provide to You in negotiating with Your Creditors and managing Your payments to them.

Failed Payment Charges

We reserve the right to collect any charges directly incurred by Us following a payment failure that is not a technical failure [i.e. the fault of the payment processor] or the fault of Us. Failed Payment Charges can be paid directly or through Your Single Payment Plan.

Fees

Our fees in respect of Instruction Fees, Monthly Management Fees, Failed Payment Charges, Final Settlement Fees, Add-on Fees, Review Fees, and Insurance Premiums, where applicable.

Final Settlement Fees

The fee at the current rate in force or as specified in Your Debt Management Agreement (DMA) payable to Us for the successful provision of Final Settlement Services on one of more of Your debts that You have authorised Us to act upon.

Final Settlement Services

The Service by which We negotiate with Your Creditors to achieve a full and final settlement of one or more of Your debts. You will be separately invoiced for any Final Settlement Fees.

Instruction Fee

The initial fee payable to Us for setting up Your DMP, negotiating with Your Creditors and setting up Your Single Payment Plan (SPP).

Insurance Premiums

Premiums due to Us in respect of any Accident Sickness and Unemployment (ASU) insurance policy You may take out with Us or other general insurance or protection products that We may offer You in the future.

Legal Support Services

The priority processing of legal collection paperwork by Us that may cause Client detriment if not processed in a time critical manner. If We are unable to assist You then We will make best endeavours to notify You at the earliest opportunity from receipt of Your documentation.

Monthly Payment

The total amount which is paid every month by You to Us throughout Your Debt Management Plan (DMP) with Us through Your Single Payment Plan (SPP). This is made up of the Monthly Repayment to Your Creditors, Our Monthly Management Fee and other payments as instructed or agreed with You (including any Insurance Premiums), where applicable.

Monthly Management Fee

The monthly fee at the current rate in force or as specified in Your Debt Management Agreement (DMA) payable to Us for that part of the Services related to the ongoing management of Your agreement with Us. The monthly fee may not be varied before the anniversary of You signing the DMA, unless there is a change in VAT ruling or an alternate sales tax imposed. Any changes in the Monthly Management Fee will be notified to You in the monthly statement preceding the change or by separate communication in writing at least 30 days prior to collection. A minimum Monthly Management Fee of �27.50 and a maximum Monthly Management Fee of �90 are applicable. These may be varied through the same notification mechanism.

Monthly Repayment

Represents the part of the Monthly Payment paid to Us through Your Single Payment Plan (SPP) that is disbursed to Your Creditors. This is used to calculate the duration of your Debt Management Plan (DMP) once You start Your Single Payment Plan (SPP).

Monthly Statement

A statement issued by Us each month detailing monies paid to Us by You, disbursements made by Us to Your creditors and any deductions for Our Fees. The statement will detail all the valid Payment Methods that We accept and the time to be allowed for cleared funds. This may be provided in hardcopy or electronically.

Notice of Termination

If You do not fulfil Your agreement with Us We may terminate Your agreement. The circumstances in which We may terminate this agreement are:

(i) the Instruction Fee not being paid in full as stated on Your Debt Management Agreement (DMA); or
(ii) the monthly Single Payment Plan (SPP) payments for distribution to Creditors are not received into Our Client Account for a period of three consecutive months or three separate payment failures in a twelve (12) month period; or
(iii) You repeatedly fail to comply with requests for information or documentation, where this is fundamental to the delivery of the service; or
(iv) You become bankrupt, file a bankruptcy petition that results in a bankruptcy order, make an arrangement or composition with Your Creditors, or
(v) You make a formal application to a court for protection from Your Creditors generally. We will give You at least four (4) weeks notice in writing with a right of appeal, which should be addressed to Our Client Services Manager at the address listed on the Debt Management Agreement (DMA). If You terminate this agreement and then We agree at Your request to restart Your DMA under the same DMA number, You will then waive Your rights to a Refund. Upon termination of this agreement by either party We will within seven (7) working days notify Your Creditors that We are no longer acting for You. At the end of the notice period We will refund all Cleared Funds that have not been disbursed to Creditors from the Client Account. Our duties and obligations under this Agreement will then come to an end. You have the right to request the return of any copy paperwork relating to Your account at this stage.

Notices

In certain circumstances You may need to contact Us or We may need to contact You formally to give the other notice in relation to this Agreement (e.g. Notice of Termination). All notices sent under this Agreement shall be valid if sent by second-class post or in any other format agreed between the parties.

Payment Method

The range of payment methods offered by Us to pay Your Single Payment Plan (SPP) or any Fees, for example: Direct Debit, Standing Order, PDQ (on-line and over the telephone), Pre-paid Current Account, Allpay payment card or on-line through www.MoneySaveSolutions.com, www.EuroDebt.com or other websites notified to You from time to time.

Personal Case Manager

The principal person appointed by Us to liaise with You and to assist in the management of Your DMP once Your first payment instalment of the Instruction Fee has cleared.

Priority Creditors

Those of Your Creditors for whom We make allowance for You to pay them in full, including an allowance to pay off any arrears within the Term of the Agreement, each month. Priority Creditors include, but are not limited to, mortgages, landlords/letting agents in respect of rent, local authorities in respect of Council Tax, the courts in respect of fines or judgments, utilities, Creditors with whom You have secured debts such a hire-purchase or second mortgages.

Review Fees

A Review Fee may be applicable for Your Annual Review or under other circumstances where a review is required, as set out under Annual Review clause. The amount of Your Review Fee will be notified in advance through Your Monthly Statement or a separate communication in writing. Review Fees can be paid directly or through Your Single Payment Plan.

Single Payment Plan or SPP

The plan by which You pay Us a Monthly Payment.

Statement-of-Affairs

The form detailing Your income and expenditure completed by Us and signed by You which forms the basis of Our final payment offers to Your Creditors and future reviews of Your circumstances, including Your Annual Review.

Strict performance

Describes what happens if We choose not to enforce all Our rights.

Term

The initial period of twelve (12) months starting from the date You sign this Agreement unless You or We terminate this Agreement before the twelve (12) month anniversary.

Termination

Cancellation of Your DMA in accordance with the Termination clause of Your Debt Management Agreement (DMA) and as set out in Notice of Termination.

Token Creditor Payments

Whilst Your Instruction Fee is being paid We will disburse Token Creditor Payments of �2 per credit agreement that We are acting upon in each month until the Instruction Fee has been paid. This is also subject to receipt of the scheduled Instruction Fee instalments and Token Creditor Payments as Cleared Funds, as set out in Your Debt Management Agreement (DMA). It is essential that You assist Us in providing the credit agreement details so that We can disburse payments to Your Creditors.

Value Added Tax or VAT

All Fees are exclusive of any applicable value added tax (VAT). Please note that although provision of Our Services is currently VAT exempt (as of June 2003), this position could change in the future. If it does change then We will notify You and amend Your Single Payment Plan (SPP) accordingly.

Variation

We may vary these Terms of Business from time to time and will write to give You at least thirty (30) days prior notice of any changes. This may be through Your Monthly Statement or as a separate written communication.

We, Our or Us

Pentagon (UK) Limited, trading as MoneySave Solutions, MoneySave Settlement Solutions and EuroDebt Financial Services, and its appointed regional advisors.

You or Your

The clients named on the front of Your Debt Management Agreement (DMA) who are signatories to this agreement.

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 the 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), 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.