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BACK 2 CREDIT TERMS OF BUSINESS

Introduction

We aim to be fully transparent in all our dealings with you; therefore these Terms of Business explain our obligations to you and yours to Back2credit. Please take time to read them carefully as they will be our contract with you and what our relationship will be formed on.

Back2credit want you to be completely satisfied in choosing our financial management services to be the best step you took towards regaining control of your finances.

Important additional information

These Terms of Business apply to all Back2credit clients and explain our responsibilities to you and yours to Back2credit. They may be amended or added to for some of our other services and will be brought to your attention at the appropriate time.

Definition of terms

“Agreement” means the agreement between you and Back2credit made primarily on these Terms of Business.

“Back2credit” means Back2credit, whose registered address is Back2credit, 5 Moreton Avenue, Birmingham B43 7QP. Company registration No. 6828817 or anyone to whom we assign our responsibility and rights under this agreement.

“Cleared Funds” means (a) any banker’s draft, cash or postal orders made payable to Back2credit which, We have received from You; (b) any monies which Back2credit have received into our bank account or Client Account from You by electronic transfer (e.g. bank giro credit transfer, debit card and standing order) and which have not been returned unpaid within four working days, and/or (c) any cheques which Back2credit have received from You which have not been returned unpaid within seven working days.

“Client Account” means the account where any monies held on behalf of Back2credit clients are kept and which is not used for the function of our own business.

“Client Authority Form” means the form enclosed with these Terms of Business which Back2credit ask you to sign to give Back2credit authority to contact your creditors and to act on your behalf.

“Creditors” means all of the people or businesses You have told Back2credit You owe monies to and who are included in your Payment Programme.

“Fees” means the Initial Fee and the Monthly Fee payable by You to Back2credit under these Terms of Business.

“Initial Fee” means 50% of your first monthly Fee payable which is paid by You to Back2credit as an initial fee for our Services, and which is not used to pay your creditors.

“Monthly Fee” means the monthly fee payable for Back2credit services. This is equal to 16,5% of your Monthly Payment, apart from 50% of your first two Monthly Payment which is the Initial Fee, subject to a minimum of £32.50 and a maximum of £100.00.

“Monthly Payment” means the total amount which is paid every month by You to Back2credit throughout the Payment Programme. This is made up of the Monthly Repayment to be distributed to your Creditors and Back2credit’s Monthly Fee, excluding 50% of your first two Monthly Payment which is the Initial Fee.

“Monthly Repayment” means the amount of the Monthly Payment which is distributed by Back2credit on behalf of You to your Creditors.

Payment Programme” means the programme of Monthly Payments by which You repay your Creditors through Back2credit and pay for Back2credit Services, prepared by Back2credit based on the information provided by You, as adjusted from time to time.

“Services” means the services Back2credit agree to provide You under these Terms of Business.

“Term” means the duration running from the beginning of this Agreement as explained in section 1.2 until we cease providing You with Services. An estimate of the duration of the Term will continue is set out in your draft Payment Programme issued by Back2credit in accordance with clause 2.1 stated below.

“Terms of Business” means these terms of business.

“You” means the individual/s entering into this Agreement named in the Payment Programme.

“DMP” Debt Management Plan is a plan of repayments made to your creditors minus our fees.

1. Appointment and Term

1.1 You appoint Back2credit and we agree to act on your behalf, as debt counsellors and debt adjusters and to provide the Services.

1.2 This Agreement will commence when You confirm Your agreement to these Terms of Business either via telephone or by returning the completed Client Authority Form or if earlier, the day when Back2credit receive the Initial Fee from You in Cleared Funds

1.3 The Agreement will continue for the Term unless terminated earlier by You as explained in sections 1.4 and 7 or by Back2credit as explained in section 8.

1.4 You have a right to cancel Back2credit’s agreement at any time during the first 14 days of the Term. “Days” include Saturdays, Sundays and public holidays. You can do this by writing to us at the above address or by telephone on 0800 092 0455 saying you wish to cancel. We will then refund to you any Fees already paid to us that are Cleared Funds.

2. What Back2credit will do

2.1 We will review your finances, covering your income, expenditure, debts, and assets. These must include all debts secured on property or goods, which we will take into consideration but cannot negotiate reduced payments on. We will calculate your disposable income, based on reasonable living expenses.

2.2 In consultation with you we will produce a DMP by which you can pay off your creditors out of your disposable income at rates you can afford. The DMP will let you make monthly payments to us and will take account of your Creditors and of our Fees. It will not take account of any matters you have not told us about. It will also take account of the differing requirements of your different Creditors, if there is more than one.


2.3 We will negotiate with your Creditors and attempt to agree repayment terms with them of the amounts outstanding. In doing so we shall use the DMP and we shall ensure that the periodic payments that we agree with your Creditors on your behalf do not exceed your disposable income (less our fee) as calculated by us for the same period.


2.4 We shall attempt to agree with your Creditors, where appropriate, that they freeze or reduce their interest charges and that they suspend or withdraw enforcement proceedings issued in connection with your agreements with them. In rare instances County Court proceedings may still be actioned against you. In these cases we will assist in completion of all relevant paperwork as required. We cannot guarantee to stop legal action by your creditors.

2.5 We will distribute the Monthly Repayments amongst your Creditors in accordance with the DMP within 5 working days of receipt of the Monthly Contribution from You in Cleared Funds.

2.6 The payments made to your Creditors will be reflected on the statements you will receive from them. A full break down of payments we have made can be obtained upon request. In addition we will issue quarterly statements showing all payments and receipts on your account.

2.7 Should your circumstances or any other relevant matter change during the Period, We shall, in consultation with You and your Creditors, review the DMP and if necessary shall make changes to it in agreement with You and with any Creditors concerned.


2.8 From time to time your Creditors will request an update of your financial situation. We will contact You to review your current financial circumstances and update your DMP accordingly. To aid this process we request that payslips are regularly forwarded to Us for review.

2.9 All payments to Us will be made into our Back2credit client account. This account is separate to our own business accounts and funds held for distribution to your creditors will be retained for that purpose only. No interest will be payable to You or Us on funds that we hold. At all times funds held for distribution to your Creditors will be classed as client monies.

2.10 During the negotiation process some creditors may continue to charge interest and other recovery charges. We cannot always prevent these charges being levied. These will however be paid off as part of your DMP.

2.11 We can only provide advice on the services that we offer.

3. What You will pay

3.1 You will pay Back2credit the Initial Fee which is 50% of you agreed monthly repayment which will be retained from your monthly repayments for the first two months.

3.2 Thereafter in month three a monthly fee equal to 16.50% of your monthly agreed disposable income will be charged, subject to a minimum fee of £32.50 and a maximum fee of £100 for the reminder of your DMP. If you do not make your agreed payment in the monthly period, then the monthly fee is still due and payable for that monthly period, and we will take the unpaid fee from the next payment you make to Us.

3.3.1If no payment is received from you for a period of 60 consecutive days, we will charge a further Initial Fee when you re-join the programme and monthly fees will apply thereafter (as 3.2)

3.4 In the case of weekly payments, the monthly fee will be calculated by multiplying the weekly payment by 52 weeks, dividing the total annual payments due by twelve and charging 16.50% of the resultant figure subject to the minimum and maximum amounts stated in 3.2.

3.5 If this agreement is ended, we will return any undistributed funds after having deducted the above fees and you will not have to pay us any more money. This will be made within 30 days of receiving written confirmation in order to allow us time to process all receipts and payments on your account.

3.6 If you decide that you need to lower your monthly payment or add any additional creditors, we will charge you a Modification Fee the equivalent of one new monthly payment.

3.7 If for any reason we receive monies from you and are unable to credit it to your account as it appears as an unknown deposit. We will: make all reasonable efforts to identify the originator of the funds, but, in the event that we do not manage to identify the depositor and no one is forthcoming with proof of payment within 6 months from date of deposit. Back2credit shall move the deposit to our account and treat as our funds. We will be under no obligation to return these funds once moved.

4. How We handle your money

4.1 All payments that back2credit receive from You in Cleared Funds will be paid directly into our Client Account. The only payments which Back2credit will make out of our Client Account are: (a) payment of our Fees; and (b) payment of the Monthly Repayments to your Creditors in accordance with the Payment Programme; and. (c) Any other payments as instructed or agreed with You.

4.2 Back2credit will distribute the Monthly Repayments amongst your Creditors in accordance with the Payment Programme normally within five working days of receipt of the Monthly Payment from You in Cleared Funds. If there is a delay in any payment which is not beyond our control, Back2credit shall take the appropriate action to put You in the position You would have been in if the payment had been made within five working days in Cleared Funds and shall make good any additional interest which has accrued and any default charges that have been applied to the account as a result of the delay.

5. What We won't do

5.1 Back2credit cannot lend You money or offer You any credit facilities.

5.2 Back2credit will not usually provide the Services in relation to secured credit (such as hire purchase arrangements, secured loans and mortgages), rent (including rent arrears), utility bill payments (including arrears), council tax payments (including arrears) and other similar debts.

5.3 Back2credit are not solicitors and cannot give You any legal advice.

5.4 Back2credit will not arrange for anybody to attend any court hearing on your behalf unless Back2credit specifically agree with You to do so, and if so Back2credit will charge an additional fee for such service as agreed with You in advance of the court hearing.

5.5 Whilst Back2credit will attempt to agree revised payment terms with your Creditors in accordance with section 2, Back2credit cannot stop your Creditors from continuing to charge You interest and other charges, or from continuing any current, or bringing any future, recovery proceedings against You if they want to do this.

6. What You will do

6.1 You will provide Back2credit with full, accurate details relating to your finances This will include your net income, outgoings, Creditors and dependants and You will also provide Back2credit with details of any outstanding judgments against You or any actual or threatened court proceedings. You will, where possible, send to Back2credit copies or originals of documents to confirm these details.

6.2 You will make the agreed Monthly Payments to Back2credit in accordance with the Payment Programme.

6.3 You will sign any necessary forms of authority or document’s to allow Back2credit to negotiate on your behalf with your Creditors.

6.4 You will send Back2credit originals or copies of all correspondence You receive from Your Creditors so that Back2credit can deal with them on your behalf. If originals are provided Back2credit can only return them to You if You request this prior to posting.

6.5 During the Term You must not make any payments directly to your Creditors unless You have notified Back2credit in advance that You propose to do so and Back2credit have agreed that the payment can be made. Back2credit will not withhold our agreement for you to do so unless we have good reason to.

6.6 You must tell Back2credit if your circumstances change so that You are or may become unable to maintain the level of Monthly Payments or if there has been an improvement in your circumstances so that You are able to increase your level of Monthly Payments.

6.7 During the Term You must incur no further debts, whether on credit or otherwise, other than those relating to your normal living expenses.

6.8 On occasion your Creditors may not provide Us with balances of your accounts due to their own company procedures. If these circumstances arise then You will obtain this information for Us and supply us accordingly.

6.9 We cannot be held responsible for any legal action taken against you by your Creditors as a result of fraudulent or incorrect information provided by You at the time of acquiring a loan, HP agreement, credit card or any other form of credit.

6.10 Non-contact from You will not be considered cancellation of the agreement. If any funds are owing to you then written confirmation will be required to release funds owing to You.

6.11 If You do not maintain regular payments we will suspend any action and payments on your account. Your Creditors may have to be informed that payments are not being maintained. This may result in your Creditors continuing legal action against you for which we cannot be held responsible.

6.12 You remain responsible for continuing to pay any secured loans, mortgages or Hire Purchase agreements and all household bills (including insurances).

7. How You may end this Agreement

7.1 You have the right to cancel this Agreement under section 1.4.

7.2 You may also cancel this Agreement at any time if the total Fees payable under the Payment Programme differ considerably from the Fees estimated in the draft Payment Programme issued by Back2credit in accordance with clause 2.1 above submitted to you. In the event of cancellation under this section 7.2, Back2credit reserve the right to retain the Initial Fee.

7.3 In addition to your right to cancel under sections 7.1 and 7.2, You may also end this Agreement at any time by giving Back2credit two weeks prior written notice which You may serve at any time whether or not You believe Back2credit may have been in breach of our obligations under this Agreement. In the event of cancellation under this section 7.3, We reserve the right to retain the Initial Fee.

8. How We may end this Agreement

8.1 Back2credit may end this Agreement at any time by giving You two weeks prior written notice if any of the following happens: (a) You fail to make two successive Monthly Payments; or (b) You are otherwise in serious breach of this Agreement or have persistently committed a series of minor breaches (even if any one individual breach would not necessarily be regarded as a serious breach on its own); or (c) You become bankrupt, file a bankruptcy petition, make an arrangement or composition with your Creditors generally, or make an application to a court of competent jurisdiction for protection from your Creditors generally.

9. Effect of ending this Agreement

9.1 When this Agreement ends: (a) Back2credit duties and obligations under this Agreement will cease; (b) your liability to your Creditors will continue to the extent that any amounts You owe to your Creditors remain outstanding over and above the repayments made to them under the Payment Programme; and (c) You may within 30 days of the end of this agreement request Back2credit to send You copies of all paperwork received from You or your Creditors that has been retained by Back2credit.

10. Personal information

10.1 Back2credit agrees to keep confidential all information received from or about You. Back2credit will not pass this information to anyone else without your permission, except in line with our data protection statement contained in section 11 or to such of your Creditors as is necessary in order for Back2credit to negotiate repayments with such Creditors, including Creditors who may process your data outside the European Economic Area (EEA).

10.2 If you have opted to receive information from Back2credit by text messaging (or email), You are responsible for the security of your mobile telephone (or personal computer) - and must take all practical precautions to prevent anyone else from accessing your information, including using all security features available on your mobile telephone (or personal computer) - and for informing Back2credit immediately if your mobile (or personal computer) is lost, your number (or email address) changes or if you suspect someone may have access to the information Back2credit send you.

11. Data protection statement

11.1 Please read this statement carefully as it explains what personal information Back2credit collect about You and how Back2credit use this information.

11.2 Back2credit will collect personal information about You both directly from You when You apply for our Services and from your Creditors as authorized by your Client Authority Form. Back2credit may also collect further information as a result of administering your Payment Programme.

11.3 Back2credit will use your personal information to provide our Services to You, and in particular to: (a) organize and supply to You your Payment Programme; (b) negotiate with your Creditors on your behalf; and (c) keep You informed about your Payment Programme and our Services.

11.4 Subject to section 11.5 Back2credit may also use your personal information to contact You to provide You details of other products and services which Back2credit think may be of interest to You, including those offered by selected third parties. Back2credit may share personal information with these selected third parties and they may contact You directly to provide You with details of such products and services.

11.5 You may let Back2credit know if You do not want Back2credit to use or disclose your personal information as set out in section 11.4 above or if you wish to alter the way Back2credit communicate with you.

11.6 Other than as set out above Back2credit will only disclose your personal information to the extent required by law, court order or as requested by other government or law enforcement authority, or to any company or other entity to whom we either transfer or subcontract any or all of our obligations to You under this Agreement.

11.7 You may contact Back2credit by writing at any time to the Data Protection Officer at our address given above for further information, or if you want to request a copy of the personal information which Back2credit hold about You or to ask Back2credit to adjust any inaccurate information held by us. If you request a copy of the personal information which Back2credit hold about You we will charge You a subject fee of £10.

11.8 Please note that Back2credit may record and monitor your calls to us to help Back2credit to enhance our service.

12. Other terms

12.1 All Fees are exclusive of any applicable value added tax (VAT) or other sales tax. Please note that although the provision of our Services is currently VAT exempt (as of June 2003), this position could change in the future. If it does change Back2credit will notify You and amend your Payment Programme accordingly.

12.2 Back2credit may transfer our rights and obligations under this Agreement by giving You written notice of such transfer.

12.3 All notices sent under this Agreement, shall be valid if sent by second-class post.

12.4 This Agreement sets out the entire agreement and understanding between You and Back2credit and replaces all prior agreements, understandings or arrangements (whether oral or written) relating to the condition of the Services.

12.5 You accept that You have entered into this Agreement in reliance only on the representations, warranties and promises specifically enclosed or included in this Agreement and, except as expressly set out in this Agreement, Back2credit shall have no liability in respect of any other representation, warranty or promise made prior to the start of this Agreement unless it was made fraudulently.

12.6 Back2credit shall not be deemed in breach of this Agreement or otherwise liable to You if we are prevented or hindered from performing our obligations under this Agreement by reason of any event beyond our reasonable control.

12.7 If any part of these terms and conditions is found to be invalid or unenforceable, that part shall be deemed severed from our agreement which will otherwise remain in full force and effect.

12.8 Any failure on Back2credit’s part to insist on strict performance of any part of these terms and conditions will not be deemed a waiver of our rights and remedies in respect of any future breach

12.9 Back2credit may modify these Terms of Business from time to time and will write to give you at least 30 days’ prior notice of any changes.

13. This Agreement is governed by English law.