Introduction
We aim to be fully transparent in all our dealings with you. These Terms of Business explain our obligations to you and your obligations to Back2credit. Please take the time to read them carefully as they will be our contract with you and what our relationship will be formed upon.
Confused Debt 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 Confused Debt clients and explain our responsibilities to you and your obligations to Back2credit. They may be amended or updated at any time, dependant on our legal or business obligations. We will keep you informed of any changes as required. If there are any changes that effect your arrangement, you will be given 30 day notice and the opportunity to cancel your agreement and find alternative solutions should you choose to do so.
Definition of terms
“Agreement” means the agreement between you and Confused Debt made primarily on these Terms of Business.
“Back2credit” means Back2credit, whose registered address is Back2credit, Botanical Suite 9th Floor, 51-53 Hagley Road, Edgbaston Birmingham B16 8TP. 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 Confused Debt which, We have received from You; (b) any monies which Confused Debt 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 Confused Debt 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 Confused Debt 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 Confused Debt ask you to sign to give Confused Debt authority to contact your creditors and to act on your behalf.
“Creditors” means all of the people, businesses or organisations You have told Confused Debt 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 Confused Debt under these Terms of Business.
“Initial Fee” means 50% of your first three monthly Fee payable which is paid by You to Confused Debt as an initial fee for our Services, and which is not used to pay your creditors.
“Monthly Fee” means the monthly fee payable for Confused Debt services. This is equal to 16,5% of your Monthly Payment, apart from 50% of your first three Monthly Payment which is the Initial Fee, subject to a minimum of £37.50 and a maximum of £100.00.
“Monthly Payment” means the total amount which is paid every month by You to Confused Debt 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 three Monthly Payment which is the Initial Fee.
“Monthly Repayment” means the amount of the Monthly Payment which is distributed by Confused Debt on behalf of You to your Creditors.
Payment Programme” means the programme of Monthly Payments by which You repay your Creditors through Confused Debt and pay for Confused Debt Services, prepared by Confused Debt based on the information provided by You, as adjusted from time to time.
“Services” means the services Confused Debt 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 Confused Debt 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 Confused Debt and who agrees to act on your behalf, as debt counsellors and debt adjusters and to provide the Services outlined in the terms of business.
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 Confused Debt 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 Confused Debt 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 0121 325 3800 advising us you wish to cancel. We will then refund to you any Fees already paid to us that are Cleared Funds.
2. What Confused Debt 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 annual 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 Confused Debt 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 Confused Debt the Initial Fee which is 50% of your agreed monthly repayment which will be retained from your monthly repayments for the first three 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 £37.50 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 If 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 4 weeks and charging 16.50% of the resultant figure subject to the minimum and maximum amounts stated in 3.2. Payments will be mad to Creditors once 4 weekly payments are collected by Back2Credit
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 may charge you a Modification Fee the equivalent of one new monthly payment. If an extra fee is payable, we will make this clear to You before starting work on the account.
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. Confused Debt 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 Confused Debt receive from You in Cleared Funds will be paid directly into our Client Account. The only payments which Confused Debt 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 Confused Debt 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, Confused Debt 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 Confused Debt cannot lend You money or offer You any credit facilities.
5.2 Confused Debt 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 Confused Debt are not solicitors and cannot give You any legal advice.
5.4 Confused Debt will not arrange for anybody to attend any court hearing on your behalf unless Confused Debt specifically agree with You to do so, and if so Confused Debt will charge an additional fee for such service as agreed with You in advance of the court hearing.
5.5 Whilst Confused Debt will attempt to agree revised payment terms with your Creditors in accordance with section 2, Confused Debt 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 Confused Debt with full, accurate details relating to your finances This will include your net income, outgoings, Creditors and dependants and You will also provide Confused Debt with details of any outstanding judgments against You or any actual or threatened court proceedings. You will, where possible, send to Confused Debt copies or originals of documents to confirm these details.
6.2 You will make the agreed Monthly Payments to Confused Debt in accordance with the Payment Programme.
6.3 You will sign any necessary forms of authority or documents to allow Confused Debt to negotiate on your behalf with your Creditors.
6.4 You will send Confused Debt originals or copies of all correspondence You receive from Your Creditors so that Confused Debt can deal with them on your behalf. If originals are provided Confused Debt can only return them to You if You request this prior to posting the to Us
6.5 During the Term You must not make any payments directly to your Creditors unless You have notified Confused Debt in advance that You propose to do so and Confused Debt have agreed that the payment can be made. Confused Debt will not withhold our agreement for you to do so unless we have good reason to.
6.6 You must tell Confused Debt if your circumstances change if (a) You are or may become unable to maintain the level of Monthly Payments or (b) if there has been an improvement in your circumstances and You are able to increase your 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 rare 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 be required obtain this information for Us and supply us accordingly. Confused Debt will make every reasonable attempt to prevent Your need to contact creditors directly.
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 Confused Debt in accordance with clause 2.1 submitted to you. In the event of cancellation under this section 7.2, Confused Debt 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 Confused Debt two weeks prior written notice which You may serve at any time whether or not You believe Confused Debt 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 Confused Debt 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) Confused Debt 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 Confused Debt to send You copies of all paperwork received from You or your Creditors that has been retained by Back2credit.
10. Personal information
10.1 Confused Debt agrees to keep confidential all information received from or about You. Confused Debt 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 any of your Creditors as is necessary in order for Confused Debt 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 Confused Debt 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 Confused Debt 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 Confused Debt send you.
11. Data protection statement
11.1 Please read this statement carefully as it explains what personal information Confused Debt collect about You and how Confused Debt use this information.
11.2 Confused Debt 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. Confused Debt may also collect further information as a result of administering your Payment Programme.
11.3 Confused Debt 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 Confused Debt may also use your personal information to contact You to provide You details of other products and services which Confused Debt think may be of interest to You, including those offered by selected third parties. Confused Debt 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. Under GDPR 2018 rules, Confused Debt will never pass your personal information to any Third parties without first gaining your express consent. In line with these regulations, Confused Debt will provide you with the specific organisation and the specific reason for requesting permission to transfer your information.
11.5 You may let Confused Debt know if You do not want Confused Debt to use or disclose your personal information as set out in section 11.4 above or if you wish to alter the way Confused Debt communicate with you.
11.6 Other than as set out above Confused Debt 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 Confused Debt by writing at any time to the Data Protection Officer at Back2Credit, Botanical Suite 9th Floor, 51-53 Hagley Road, Edgbaston Birmingham B16 8TP for further information, or if you want to request a copy of the personal information which Confused Debt hold about You or to ask Confused Debt to adjust any inaccurate information held by us. Any requests you make for information are subject to Subject Access request rules as set out by the Information Commissioners Office (ICO)
11.8 Please note that Confused Debt may record and monitor your calls to us to help Confused Debt to enhance our service. All call recordings are for internal use only and we will never pass them to any third parties unless the reasoning falls with those outline in section 11.6.
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 Confused Debt will notify You and amend your Payment Programme accordingly.
12.2 Confused Debt 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 Confused Debt 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, Confused Debt 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 Confused Debt 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 Confused Debt 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
The total amount repaid and the duration of the plan has been estimated on creditors agreeing to freeze interest and charges and payments remaining the same each month until the debt is completely repaid in full.
We aim to improve your financial circumstances through seeking to maximise your income where possible. We will review your plan with you annually and if it appears that your payments to creditors can increase, the plan will complete much sooner and the cost to you will be much cheaper.