Harrington Brooks Debt Management FAQ

Entering into a financial management plan means your current credit agreement terms will be broken, which will have an unfavourable effect on your credit rating.

This means that it will be harder for you to obtain credit in the short term, and perhaps in the medium to long term too as records will be retained by credit reference agencies for six years. However, repaying debts via a Debt Management Plan is more favourable than not paying debts and entering into insolvency.

It is also important to remember that if you have been experiencing financial difficulty and have missed payments to your debts, this will already show on your credit file.

Initial debt advice is given free of charge, however should a client choose to enter into agreement with us and use our services - fees are payable.

Client's first two monthly payments go towards the implementation costs and negotiating with creditors. Then there is an ongoing administration cost of 17.625% which is included within subsequent monthly payments.

This is fully explained before entering into agreement with us.

We offer several services to help the indebted individual, some of which are regulated. At present, a Debt Management Plan is not a regulated product. However, the Office of Fair Trading (OFT) issues guidelines as to how a debt management provider should conduct themselves.

Any debt solution provider needs a consumer credit licence to operate; our licence is No. 627372. If the OFT deemed a debt management company was not fit to operate, this could be revoked and they would no longer be permitted to trade.

The OFT issued their guidance in 2001, and revised it in 2008. A link to this guidance on the OFT website is provided below.

Harrington Brooks comply with distance selling regulations and with the 'Debt Management Guidance Notes' published by the OFT, as mentioned above.

As a client of Harrington Brooks this means that you have a cooling-off period of seven working days, within which you can request a refund. You will fall into one of the following two scenarios:

• I made my first payment after receiving written information from Harrington Brooks. Your first day will be classed as the day you made your initial payment to us.
• I made my first payment before receiving written information from Harrington Brooks. Regardless of your initial payment date, the seven days will start from the day you received your information pack.

Our aim is to clearly explain all options and to offer the most appropriate advice whatever your circumstances. The following guide, has been produced by the Insolvency Service. It explains about debt management and other options from a neutral point of view, detailing the pros and cons of each.

If your financial circumstances change, for the better or worse, then it is best that you speak to a member of our Client Services team who will be able to advise you on what to do next.

Yes, you will be able to get a Debt Management Plan if you have any existing CCJ’s or have other adverse credit problems.

A Debt Management Plan is not a legal agreement, which means that creditors do not have to accept it. However, we will do our best to try and negotiate with them, on your behalf.

If you fail to make your monthly payments, it is likely that your creditors will no longer wish to continue to support you on your plan and may withdraw their help. If you are struggling to make your payment, then it is important that you talk to a member of our Client Services team who can advise you.

This is dependent on the amount that you owe to your creditors. As you will have to continue to make payments until all your debts have been fully repaid.

No, as we don't lend you any money for a Debt Management Plan, it means that we do not have to check your credit rating score.

The monthly amount that you need to pay for your Debt Management Plan is dependant on your circumstances. You should always pay this monthly amount, as failure to do so might mean that your creditors will cancel this agreement. That is why we work with you to make a tailor made payment plan which is based on your earnings and expenditure.

This is possible, but it is important to remember that instead of struggling with your debts now, you will be paying a smaller monthly payment. Also, your creditors may freeze interest and other charges on your account so that you are able to pay back your debt more quickly.

There are debts which cannot be included in a Debt Management Plan. These are called priority debts, meaning that if they are not paid then there will be serious consequences, such as not paying your mortgage could result in your house being repossessed. Your payment level will be set to allow you to be able to make such payments ahead of your debt management payments.

No, a Debt Management Plan is not a loan as you do no borrow any money from us. It is a way of consolidating all of your repayments into one affordable cost.