Frequently Asked Questions

1. What is debt management and what is a debt management plan?

Debt management provides the consumer with an alternative to bankruptcy, repossession and IVAs. A debt management plan offers a flexible solution for your clients by helping to assess their finances and help the client regain control of their finances 

2. Why should I even consider Debt Management as an alternative for my clients?

Many clients who have already sought the advice of brokers and intermediaries have impaired credit records and have been struggling to meet the contractual payments on their credit agreements many years before visable signs appeared on their credit record. When lending criteria is more relaxed these people are able to obtain consolidation loans and re-financing solutions that generally are not taking into account their existing credit commitments. When lending criteria tightens these people have very few alternatives, despite the fact that they have the means to make meaningful contributions to their unsecured creditors after allowing for all their committed expenditure.

Most non-standard lenders would view positively the fact that a debtor has faced up to their debts and made regular contributions over a sustained period of time. 

3. How can I benefit from getting involved?

As an introducer when you pass on a lead via the website you can receive generous weekly commissions. 

4. How do I become an Introducer?

Very simply click through to the make a referral section to register as an introducer.

5. Does signing an Introducer Agreement tie us down in any way financially?

No. EuroDebt make no charges for becoming an Introducer. Specifically, there are no charges for training, your co-branded website, standard marketing support material and business development support.  The agreement is non-exclusive and can be terminated giving written notice. The joint marketing plan that supports the Introducer Agreement determines the amount of commitment on both sides that is anticipated to pro-actively generate referrals and the level of non-standard marketing support that EuroDebt will provide, including financial contributions to events and marketing collateral that are mutually agreed.

 6.Do you offer any marketing facilities?

Yes. In addition to the co-branded referral website, Introducer Scheme certificate, Introducer Scheme logo, window stickers and brochures, we offer a range of high quality marketing tools and artwork templates that would enable an Introducer to advertise and undertake database marketing to a client or prospect base. These templates allow for the Introducer or EuroDebt to undertake the fulfilment, including the provision of a Freephone number for prospective clients to call. Samples of these different marketing tools are available in the Introducer Scheme pack.

 7.How do I know that any leads I generate will be attributed to me? 

The EuroDebt Introducer Scheme is deisgned to provide you with immediate acknowledgement of any lead that you refer to us, whether this be via your personal Introducer Website or via an alternative method.
 

8. Should I be targeting my existing clients who have re-mortgaged or taken out consolidation loans in the last years?

Absolutely, Unfortunately best intentions often don't become reality and unsecured debts are left unpaid and the balances start rising again. The majority of people who take out a personal loan to consolidate existing debts go on to build up more debt and struggle with the consequences.

Research commissioned by moneysupermarket.com shows that 28% of Brits (12.7 million people) have taken out a loan to consolidate some or all of their existing borrowing. Worrowingly, of those who took out a personal loan to merge their existing debt, 8.4 million people (66%) continue to build up even more debt.

 9.What happens if I terminate the agreement?

You will be paid on all introduction referrals made before the date of termination

10. What is a Debt Relief Order and who is eligible?

Debt Relief Orders (DROs) are expected to be available to debtors in April 2009 and are intended to provide debt relief for people in England and Wales:

• who owe £15,000 or less
  
• whose total gross assets do not exceed £300
• whose disposable income, following deduction of normal household expenses, must not exceed £50 per month

There are additional restrictions on who may enter into a DRO. A Debt Relief Order will lead to the debts being discharged after one year. During the year that a Debt Relief Order is active, the applicant will be protected from their creditors and subject to similar restrictions to bankruptcy. If the applicant's financial circumstances change during the order, then they will be expected to make arrangements to repay their creditors. There will be civil and criminal penalties for anyone abusing this system.

It will only be possible to obtain a debt relief order by applying to the official receiver through an approved intermediary. Debt Relief Orders are currently being finalised by the UK Government, so some technical implementation information is not yet known.

Debt Relief Orders will therefore only be available to a very restricted category of debtors. There will be a one-off flat fee of £90, with no further charges. Authorised intermediaries will include CAB debt advisers.

11. I am a homeowner and being threatened with a Charging Order on a unsecured debt with a sub-prime lender, what does this mean?

If a Charging Order is placed on your property by a creditor then it means that if the property is sold, the charge has usually to be paid first before you receive any of the proceeds of the sale. Whilst a Charging Order does not compel you to sell your property creditors are becoming much more aggressive in enforcing them for example, by going to court, when the interest and charges they add to your debt reach a significant amount. Given the level of charges they may be able to contractually charge then this can happen with frightening rapidity.

At the moment creditors can apply for a Charging Order only if someone has defaulted on a loan and has a county court judgment (CCJ) against them. However, the Tribunals, Courts and Enforcement Act of 2007 removes the requirement for someone to have defaulted on a CCJ before a Charging Order can be applied for. The government has currently deferred implementing this element of the Act. Concern is being caused by sub-prime lenders who, having charged high interest rates for unsecured loans, are now effectively converting them to secured loans (at the same interest rate) by obtaining Charging Orders and then enforcing those Charging Orders and forcing the sale of the property. It is still rare for creditors to apply for an order for sale and for courts to grant these for lower level of unsecured debts, typically over £1,000. 

If you have, or are being threatened with a Charging Order, please take professional advice immediately. It is possible to stop it before it is too late.