Your Single Payment Plan (SPP)

Paying Your Creditors

Following the Home Visit, our Advisor will send your documentation to EuroDebt's head office by first class post. It will then be reviewed on the next business day by EuroDebt's Compliance team.

Statement of Affairs

A draft Statement of Affairs will be issued to you within two working days of approval of the Debt Management Agreement (DMA) or after 14 days if you did not waive your right to the cooling off period on the DMA. EuroDebt will also return any original documentation supplied to the Advisor by you.

You will be requested to review the draft Statement of Affairs and make any amendments before signing this as an accurate statement of your current financial circumstances. This process normally takes two weeks from signing the original agreement. Balance requests to creditors normally take one month for all creditors to respond.

Creditor Contact

EuroDebt's processing team will also contact your creditors within two working days of approval of the DMA or after 14 days if you did not waive your right to the cooling off period on the DMA. Our initial letter will confirm our appointment as your Debt Manager and request up-to-date balances. In that letter we will also request interest & charges be frozen on the credit agreements you have listed.

Debt Management Agreement number

When your Debt Management Agreement is registered you will be given a number (DMA-id) which must be quoted on all correspondence from EuroDebt to you and your creditors and which you must use when you contact EuroDebt by telephone. The DMA-id is on the top right hand side of your copy of the signed DMA. If your creditors or their agents contact you during the set-up process, you should notify them that you have appointed EuroDebt as your Debt Manager and quote the DMA-id as a reference.

Creditor Correspondence

EuroDebt requests that you send us any correspondence you receive from your creditors. We will scan this and link it to your Debt Management Agreement on our Debt Management System. We will also deal with the creditor query.

Final Statement of Affairs

You will receive your final Statement of Affairs detailing the total amount of debt to be repaid, EuroDebt's total fees and the number of monthly payments to clear the listed debts. EuroDebt will state the monthly payments to each creditor.

EuroDebt's Debt Management Agreement makes provision to withdraw from the plan if you provide us with details on considerably more debts than originally confirmed to the Regional Advisor.

Personal Service

Once you have started your SPP, you will have a Personal Case Manager. We will send you a monthly statement and, if you choose, diary notes of all correspondence relating to your account in the previous month. We will also deal with all correspondence sent in by you and this will be scanned and linked to your account.

Accident, Sickness & Unemployment (ASU) Insurance

If you choose to be protected by EuroDebt's Accident, Sickness & Unemployment (ASU) insurance this will be detailed on the SPP statement as well.

2 to 4 months in

Once you have made your second full SPP payment you will receive a fully itemised statement each month of how your creditors are being paid. Debt collection activity by creditors and their agents should have reduced at this stage. You must not ignore contact by creditors or their agents, but make them aware that EuroDebt is acting for you if they call you. Please quote your DMA-id and we would advise you to keep calls short and polite.

Annual Review

We will conduct an Annual Review of your SPP one year from the date that we issued the final Statement of Affairs. At any point in the interim period it may be necessary to undertake a review "on demand" should a creditor request it. The most common reasons for this are where additional creditors have been added to the original list of creditors or some of the balances have increased by quite significant amounts.

Debt Sale

It is not uncommon for debts to be sold by the original creditor to another debt buyer during the course of your plan. It is sometimes the case that the new debt owner does not know that the credit agreement is subject to a DMP and in such circumstances they may resume debt recovery activity. If this happens it is very important that you notify them of EuroDebt's appointment at the earliest opportunity. Also notify your Personal Case Manager who will contact the creditor with a payment proposal.

Termination

You have the right to terminate your agreement with EuroDebt at any point in your agreement without any financial penalty. We would request that you give us at least 14 days notice to ensure that we can professionally advise your creditors that we have been dis-instructed.

You will be given the opportunity to request return of any paperwork upon termination. EuroDebt scans all documentation received and does not retain original documentation and correspondence. Important original documentation and correspondence will be returned to you on an on-going basis throughout your plan.

Important points to remember:

• Whilst lenders are not obliged to freeze interest and charges, in 90% of the current cases we have referred to them they have done so*. Where a lender does not freeze interest and charges the amount you owe and the period over which you repay that credit account may increase, though we will continue to request interest and charges be frozen once several payments have been made to your DMP.
• Whilst entering into a DMP can adversely affect your credit rating it is our experience that those who approach us already have an impaired credit record. By entering into a DMP you will be showing your creditors that you are taking a responsible attitude to resolving your financial problems and this could help you in the future.

* Figure accurate at the start of January 2010.

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