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Introduction To The Help File
How To Get The Most Out Of Our Products
How To Submit A Case
What Happens After You Submit A Case
FAQ
1. Introduction
This file has been created to guide brokers into the Debt Management and Full & Final Industry and help you successfully establish this new arm of your business.
Whether you are a small company looking to top-up your profits by cashing in on those few eligible clients per month, or a larger group looking to pass a consistent daily flow of leads, throughout this file we will:
- Give you tips on how to maximise the product to its full potential and how to promote it within your business.
- Help you implement it into the day-to-day running of your business.
- Assist in integrating the products into your sales techniques and they can help secure a client.
- Provide information on what Gregson & Brooke Ltd will do for you and our requirements from you.
Hopefully, this booklet will be all you need to get up and running, but remember if there's anything you're unsure of, please do not hesitate to contact our dedicated Broker Team on 0845 2020 808 (Option 4), or email complete@gregsonandbrooke.co.uk
2. How to Utilise Our Products to Benefit Your Sales.
In order for these two products to be integrated into your day-to-day running of your business, it is vital that you gain an understanding of how Debt Management and Full & Final Settlement work; therefore you will be able to locate a potential client, or more importantly, not miss one! We have detailed an explanation of both on the website, however, if you have any further queries, please do not hesitate to contact us on 0845 2020 808 (Option 4).
a) Criteria
Our requirements for both of the products are relatively straightforward. However, the criteria is not strict and we will accept cases which fall below the guidelines in exceptional circumstances. You may wish to pass the below to your staff for future reference.
Debt Management
Any client qualifies for Debt Management if:
- They have two or more unsecured creditors.
- They owe more than £6k.
- They cannot meet their monthly repayments.
Full & Final Settlement
Any client qualifies for Full & Final Settlement if:
- They have unsecured debt
- They are able to raise a lump sum to pay off their debt
b) Sales Aids
Debt Management
If the opportunity arises to offer Debt Management to a client, the chances are they are in an invidious position. Therefore, a Debt Management Plan can be a fantastic temporary solution to their problems in certain conditional situations; such as needing to make three clear payments to their mortgage in order to comply with lenders criteria, or using a Debt Management Plan to increase the clients' disposable income. So instead of cancelling a client, they're merely placed on hold for a few months in order to improve their finances.
Here are a few interesting figures which may help:
• More than 80% of creditors will freeze interest on client's accounts when entering onto a Debt Management Plan. Generally, this means clients will pay more off the actual balance by using our services, rather than making minimum or contractual payments each month.
• Debt cannot just be left behind like it used to be. Creditors can now search throughout the whole of the EU for non-paying clients and if left unpaid, it will drastically increase.
• Creditors will have little or no alternative but to accept our offer of payment using the Debt Management system, as it is calculated fairly between all debtors.
Full & Final Settlement
By adding Full & Final Settlement into your pitch, you may find that you are able to cement the deal a lot quicker than before. If a client who has applied for a consolidation loan is told they can save thousands of pounds in the process, then it wouldn't make sense for them to shop around.
Here are a few interesting figures which may help:
• In just over a year, Full & Final Settlement has written off nearly £1.6m of debt.
• The average client reduced their settlement by in excess of £7,500.
• The average client had nearly 30% of their debt written off.
• Example Client 1 had 76.31% of their debt written off, saving £31,044.72.
• Example Client 2 had £78,913.24 of debt cleared for just £38,189.94.
3. How To Submit A Case.
You can either submit a case to us online via our website or by email.
Submit Online
To submit online, click on the 'submit a case' tab on the left hand navigation bar. You will then be able to click on the 'submit online' button where you'll be diverted to our online form.
If you are not logged in, simply go to www.completedebtsolution.co.uk and log in using your personal username and password. Once logged in, the 'submit a case' tab should then be visible in the left hand navigation bar.
Once you are at our online form, just simply complete all or as much as possible; we will contact you by telephone if we need to confirm any of the details.
If you have any further queries, call us on 0845 2020 808.
Email Us
To email an application to us, either send to sales@gregsonandbrooke.co.uk or click on the 'submit a case' tab on the left hand navigation bar. You will then be able to click on the 'email us' button where you'll be able to mail from Microsoft Outlook or your default Mail Server.
We require the following information when submitting applications through email.
Clients Name
Address
Postcode
Telephone Number
Type of Application (Full & Final or Debt Management)
Level of Debt
Current Monthly Repayments (If Debt Management)
Lump Sum Available To Repay Debt (If Full & Final)
If you are able to provide any further notes or information, please feel free to detail it in the email.
If you have any further queries, call us on 0845 2020 808.
4. What Happens After You Submit A Case.
Debt Management
If you are ready to refer a Debt Management client to us, then they will either be cancelled or on-hold with you. Therefore, your participation is strictly minimal and all we ask is for the clients contact details and as much information regarding the clients as you have.
Once we have received the lead from you, we will call the client with 24 working hours (unless in exceptional or unforeseen circumstances). The client will then be sent documents to sign and return. We will implement the plan upon receipt of the first monthly payment from the client and brokers will be paid within 7 working days from there. We will review all accounts every 6 months to see if the clients would be eligible for or benefit from secured finance to consolidate their loans. Obviously, the clients would be referred back to the introducer.
Full & Final Settlement
Any client who is looking to consolidate debt and is able to raise a lump sum is a potential Full & Final Settlement case. We are flexible when dealing with these cases, as we can work alongside the mortgage and negotiate settlements before the completion so you and the client both know exactly what will be required to clear their debt. This could be ideal if you have limited funds to deal with. However, if you prefer, we can wait until the mortgage is complete and operate as an additional service once your work is complete.
Once we have received the lead from you, we will call the client with 24 working hours (unless in exceptional or unforeseen circumstances). The client will then be sent documents to sign and return. We will require the lump sum payment to be made to us so we can settle debts directly with the creditors. Any remaining funds will be refunded directly to the client.
5. Frequently Asked Questions
I. Is Full & Final Settlement guaranteed?
No, we can never guarantee that we will be able to settle a debt for less than the amount owed; however, we have never failed on a Full & Final Settlement case that we have pursued. If you are unsure as to whether a case would qualify, then call our team and we will be more than happy to help.
II. How will we be paid?
Payment is made by one of the following two methods:
- Monthly BACS
- Monthly Cheque
Payments will be made on the last Tuesday of the month. Any case which completes 6 days prior to this date will be included in the following month's payment.
III. What are the benefits and why should we use this?
By using our products to the full potential you could increase sales, profits and turnovers. Full & Final Settlement is ideal for securing those clients looking for a good deal and for those clients who are very tight on the income and LTV, whilst Debt Management is ideal for keeping clients on board who would previously be cancelled and forgotten. Although it may take time for the clients to become eligible for a mortgage again, at least you know they will be returning customers. Not only will you receive extra revenue from the customers you are now able to help, but we'll give you a percentage of our fees too.
IV. What do you charge the client?
Our fees are based as follows:
Full & Final Settlement
Our fee is performance related, meaning we charge 16% of the total amount we have saved the client. Therefore, a £10,000 saving would mean £1,600 fees. The broker will receive a percentage of this fee.
Debt Management
When implementing a Debt Management Plan, we calculate the clients disposable income by completing a Financial Statement which details all income and expenditure on a monthly basis. The disposable income is then the monthly payment the client will make until the Financial Statement is reviewed or the plan is terminated.
As per the industry standard, we will collect the first month's payment as set up fees (of which the broker will receive a percentage). We then charge 16% of the monthly disposable for the term of the plan. This is to cover ongoing costs; therefore brokers will not receive a percentage of this particular fee.
V. Will either product interfere with the mortgage sale?
Neither product will interfere directly with the sale of the mortgage or the processing. The Full & Final Settlement will merely run alongside it, whereas the Debt Management Plan is for clients who are unable to proceed with a mortgage, therefore there is strictly no interference. You may find in some Full & Final cases that the lender requires all debt to be consolidated as a condition of the loan. These cases are known as Acceptance Before Completion cases (ABC). We will work alongside the mortgage and gain the settlements before the mortgage completes, so the lender knows exactly how much is required to settle the debt.
VI. What repercussions will this have on the client?
Both products have different effects on the client dependant on their current credit file.
Prime
A Full & Final Settlement could possibly damage the credit scoring, however if the client had never missed a payment, the creditor might not accept a reduced offer. A Debt Management Plan would severely affect the scoring and will mean the client would be unlikely to gain any further credit. However, prime clients are not our target market.
Sub-Prime
If a client who was considered sub-prime were to settle their debts by way of Full & Final Settlement, this would not have an adverse effect on their credit file. It's not likely to improve their scoring, but it shouldn't harm it either. A Debt Management Plan will affect their scoring and it will be unlikely for them to gain any further credit, however if they are struggling with their debt and currently borrowing further credit to repay existing, then it should pull them out of the vicious circle and get their debts back in order.
Adverse
If a client who is considered adverse were to settle their debts by way of Full & Final Settlement, it would only improve their file. Although it cannot be guaranteed, it usually improves their ratings as the creditor agrees to show the balances as satisfied with the credit reference agencies. A Debt Management Plan would not usually harm these clients either, as their rating is usually damaged at this stage.
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