Overview

What are the fees for your solutions?

If you enter into a debt solution with us, there may be fees involved. As one of the longest-standing debt help providers in the UK, we promise our customers an excellent service, and we will always ensure our fees stay competitive.

Will my credit score be affected?

Any debt solution that involves paying less than originally agreed will have an impact on your credit rating for a minimum of 6 years. We’ll talk you through all the pros and cons of each solution before you sign up for anything.

What if I change my mind?

If you choose to enter a solution with us, you have the right to cancel the agreement at any point within the first 14 days. If you do, you will receive a refund of any fees you may already have paid to us during that time.

Debt Management Plan fees

One of our companies, Gregory Pennington Limited, charges an arrangement fee of up to £195 from the first 6 regular payments you make, to cover the cost of setting up your Debt Management Plan (DMP).

A management fee will also be charged of 20% of the payment you make in each payment period (this could be every four weeks or monthly depending on what suits you best and when you receive your regular income), and is subject to a minimum of £42.50 and a maximum of £90.

We will only take a maximum of 49% in fees of each payment to ensure that at least 51% is paid to your lenders.

The management fee covers the month-to-month running of your DMP, including negotiating with your lenders, distributing payments and taking care of correspondence between you and your lenders.

The management fee also covers our regular reviews of your circumstances – normally once every 12 months (or any other time your circumstances change). If your situation has changed and your ability to keep up with your DMP is affected, we can talk to your lenders about changing your payments accordingly.

For example if you owe £7,239 to your unsecured lenders and can afford regular monthly payments of £286 to the DMP:
The monthly fee is £57.20
The minimum estimated repayment term is

This assumes that regular payments are maintained without default, and that the lenders agree to freeze interest and charges. This is not guaranteed and, if they don’t, it will take longer to clear the balance in full.

33 months
The total fees payable over the full term of the DMP are £2,082.60
The total amount to be paid including the original debts £9,321.60

Individual Voluntary Arrangement fees

We will only charge you a fee if your Individual Voluntary Arrangement (IVA) is proposed and accepted by your lenders.

All fees are paid out of – not in addition to – your regular affordable monthly payments.

Once your IVA has been accepted, the fees you pay will be:

  1. 1) A nominee’s fee
  2. 2) Supervisor’s fees
  3. 3) Costs/expenses

Nominee’s fee

This fee covers our professional costs and charges for arranging your IVA including:

  • Preparing your IVA proposal – which sets out the proposed terms of your IVA and provides your lenders with a detailed snapshot of your finances
  • Organising the creditors’ meeting, in which lenders can request changes to the terms of your IVA

It will typically be between £1000 and £2700 and is often capped to an amount equal to your first 4-6 months’ IVA payments.

The Nominee’s fee will be paid first before any payments are made to your lenders.

Supervisor’s fees

The Supervisor’s fees cover the ongoing work involved in running your IVA and is calculated as a percentage of “realisations”: typically it is charged at 15–18% of any money received by the Supervisor and distributed to your lenders, such as your monthly contributions, any assets (e.g. the equity in your property, successful PPI misselling claims) and windfalls (e.g. an inheritance) that you receive during the term of your IVA.

Costs

We are also entitled to claim back the cost of certain expenses (such as postage, insurance, etc) incurred directly in connection with the running of your IVA.

The amount of our fees will be clearly set out your IVA Proposal. They must be approved, and may be changed before it is accepted, by your lenders. In most cases, the total fees and costs will not exceed £3,650.

The average fees paid by our clients are currently:
Nominee’s fees £1,272
Supervisor’s fees £1,310
Supervisor’s costs £950

Trust Deed fees

We will only charge you a fee if your Trust Deed becomes “protected”, i.e. it is accepted by your lenders.

All fees are paid out of – not in addition to – your regular affordable monthly payments.

Once your Trust Deed becomes protected, the fees you will pay are:

  1. 1) A fixed fee
  2. 2) A percentage of realisations
  3. 3) Costs/expenses

Fixed fee

This fee covers the Trustee’s professional charges for arranging your Trust Deed including preparing your Trust Deed and presenting it to your lenders for protection.

The fixed fee will not normally exceed £2,500 and will always be the first cost that is paid out your regular contributions, and before any payments are made to your lenders.

Realisation fees

The Realisation Fees cover the ongoing work involved in running your Trust Deed and is calculated as a percentage of “realisations”: typically 15-20% of any monies received by the Trustee and distributed to your lenders such as your regular payments, any assets (e.g. the equity in your property, successful PPI misselling claims) and windfalls (e.g. an inheritance) that you receive during the term of your Trust Deed.

Costs

The Trustee is also entitled to claim back the cost of certain expenses (such as postage, insurance, etc) incurred in connection with the running of your Trust Deed.

We will set out exactly how much we will charge in your case within the terms of the Trust Deed your sign and before we seek your lenders approval.

For a typical client who owes £19,927 to their unsecured lenders and can afford regular monthly payments of £168 into a Trust Deed lasting four years:
Fixed fee £2,262
Percentage of realisations £1,527
Trustee costs and disbursements £1,100
Typical monthly repayments (x48 months) £168
Total to be paid (including fees mentioned above)
This example assumes that there is no equity in any property owned by our client, that they do not receive any regular overtime or bonus payments.
£8,064
Unsecured debt written off on completion £16,752
(84.1%)

Debt Arrangement Scheme fees

Under the DAS regulations, the maximum that you will to pay is 100% of the debt that you owe. Any associated fees are taken from this amount. The lenders know that two fees will be taken from the amounts that you pay before the payments are distributed to them.

There are two parts to the DAS fees. The first part, which is paid to the Accountant in Bankruptcy (the Scottish government body that administers the Debt Arrangement Scheme), is 2% of the amount that is distributed to lenders. The second part is a 20% administration fee that is paid to us before payments are distributed to your lenders. Your lenders know that these fees are set by the DAS regulations and they will not ask you to pay anything else to cover the fee.

If you owe £11,858.99 and can afford to make a regular monthly payment of £237.44 to a DPP, it would take 50 months for you to clear your debts.
  1. Your lenders would be paid each month (unless they have requested a different frequency).
  2. From the payment that you make, 2% will be deducted to pay the DAS Administrator, and 20% will be deducted for our administration fee.
  3. In total you would pay £11,858.99. Your lenders realise that £237.18 will be paid to the DAS Administrator and £2,371.80 will be paid to us.
  4. The rest will be paid to your lenders, and this will mean that you have paid off your debts in full.

Bankruptcy/Sequestration fees

England and Wales

The administration fee to apply for Bankruptcy in England and Wales is £680, which is payable to the Insolvency Service via gov.uk. To apply for bankruptcy you will need complete an online application and submit this to the Insolvency Service where an adjudicator will then consider your application.

Northern Ireland

You will need to apply to the High Court for your Bankruptcy and your local Citizens Advice Bureau can assist you with this process.

There are three fees that you will need to pay when you take your petition to the Court:

  1. A fee of £525 towards the costs of administering your bankruptcy
  2. The Court fee of £115 (this fee may be waived in some circumstances, the court staff will be able to advise you)
  3. A fee payable to a solicitor relating to the Statement of Affairs which costs approximately £7.

Debt Relief Order fees

We are an approved intermediary (you can only apply for a Debt Relief Order (DRO) through an approved intermediary) and do not charge for these services.

If you decide to apply for a DRO, you will need to pay a fee an administration fee of £90 to the Insolvency Service when you submit your application.

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