| 1. |
Definition of Terms |
| 1.1 |
“the Company” means Breathe Financial Management Ltd whose registered office is at:
The Wireless Development Centre, Cinnamon Park, Warrington, Cheshire. WA2 0XZ. |
| 1.2 |
“the Client” means the person(s) signing the Authority To Act form. |
| 1.3 |
“the Creditors” means the creditors of the client as disclosed to the Company. |
| 1.4 |
“the Fees” means the fees to be paid by the Client to the Company in accordance with clause 5 for the provision of services. |
| 1.5 |
“the Services” means the services to be provided by the Company to the Client in accordance with clauses 2 and 3. |
| 1.6 |
“the Programme” means the schedule of payments to the creditors as prepared by the company in accordance with clause 3. |
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| 2. |
Agreement to Appoint |
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The Client hereby appoints the Company to provide the services of a debt counsellor/adjuster and financial intermediary and further authorises the Company to negotiate with the Clients creditors with a view to agreeing with them a solution to any outstanding financial issues which may include amongst others, a comprehensive repayment schedule and money management and disbursement plan. |
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| 3. |
Responsibilities of the Company |
| 3.1 |
The Company will examine the details of the clients income, outgoings, assets, liabilities, creditors and related credit agreements, as are provided to the Company by the Client in accordance with clause 4.1 and shall determine the Clients assets and liabilities and net disposable income in accordance with the details so supplied, being the amount that the client can afford to pay to all his creditors either by way of monthly repayments of the sums outstanding, or by way of full and final settlement of the sums outstanding, or any reasonable plan offered by the Company as a solution to the Clients debt problems or money management problems having taken account of the Clients income, outgoings, assets, liabilities and reasonable living expenses. |
| 3.2 |
The Company will communicate to the creditors the net disposable monthly income available to them based on either a pro-rata formula or other appropriate breakdown of net disposable income. The Company will then represent the Client in any further discussions with the lenders. The Company will use reasonable endeavours to secure the creditors acceptance of a solution to the Clients debt problem which may or may not include lower weekly/monthly repayments, the freezing of interest charges and the withdrawal/suspension of proceedings or enforcement proceedings in respect of outstanding default or none payment under the terms of the Clients agreements with his creditors. |
| 3.3 |
In consultation with the Client and taking account of the Clients assets and liabilities and net disposable income figure calculated in accordance with clause 3.1 above and reflecting the payments required pursuant to the negotiations with the creditors carried out in accordance with clause 3.2 the company will, if requested, prepare a written program for the repayment of all creditors on behalf of the Client out of the Clients net disposable income. The aim of the program will be to enable the Client to pay the creditors on a pro-rata basis if this is deemed to be in the best interest of the Client.The function of this program is to enable the creditor to receive an appropriate share of the Clients disposable income. Payments by the Client will be made directly to the Company’s client fund holding account. The Company will then pay the creditors minus the fee once per month after cleared funds are recorded. Where possible monthly payments will be disbursed on the 25th day of each month. |
| 3.4 |
In the event that the exact details of the amounts required to repay any individual creditor are not available at the time of preparation of the programme the Company will prepare the programme on the basis of estimates of the amounts due from the creditors concerned as provided by the Client. In such circumstances the programme will include a statement to the effect that further sums in respect of interest and other charges may be due from the individual creditors concerned and that accordingly the programme cannot include a definitive statement of the total amount outstanding and the period over which repayment can be effected. However, the company is only able to provide such information as is provided by the creditors. |
| 3.5 |
The Company shall liase with the Client and the creditors during the term of the arrangement at the Company’s discretion and shall use reasonable endeavours to negotiate a revised programme if necessitated by the Clients inability to meet the repayment schedule and/or by a change in the Clients personal circumstances. The Company shall review the programme on an on going basis as deemed necessary and formally every 6 months with the Client. The outcome of such reviews will be communicated to the creditors. |
| 3.6 |
The Company will provide a monthly statement to the Client detailing: a) any fees received by the Company from the Client, b) any payments made by the Company to the creditors on behalf of the Client, c) the stage of negotiation with each creditor, d) the estimated balance of the remaining debt with each creditor in accordance to clause 3.4. |
| 3.7 |
The Company will throughout the duration of this agreement provide, at no further expense to the Client, the services of a debt counsellor to discuss, advise and counsel the Client as to his debt situation or more general money management position. |
| 3.8 |
The Company will not provide substantive legal advice itself, but will endeavour to provide assistance wherever possible. |
| 3.9 |
The Company will provide to the Client at any time information regarding alternative money advice options that are available. |
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| 4. |
Duties of the Client |
| 4.1 |
The Client shall provide to the Company his personal finances including, but not limited to the following together with copy documentation (if requested):- |
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| 4.1.1 |
net income |
| 4.1.2 |
all outgoings |
| 4.1.3 |
his dependants |
| 4.1.4 |
creditors including their names and addresses, the goods secured under any credit or hire or similar agreements, the amounts outstanding and the outstanding terms of any agreements |
| 4.1.5 |
mortgages or charges over his property |
| 4.1.6 |
council tax outstanding |
| 4.1.7 |
any enforcement actions taken or threatened by the creditors to date |
| 4.1.8 |
any outstanding judgement debts |
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| 4.2 |
Once the programme has been accepted by the Client the Company will confirm in writing the monthly contribution payable and on which date the payment is due. If the Client accepts the programme he shall make his first payment to the Company on the date specified. Thereafter the Client will make a regular monthly payment in accordance with the programme by standing order, by cheque or by paying in book. |
| 4.3 |
The Client shall make each payment direct to the Company’s client holding accounts in respect of the debts that are covered by the programme during the life of the agreement. |
| 4.4 |
In the event that the Client does not accept the programme the Client shall not be responsible for any cost incurred by the Company. |
| 4.5 |
Following acceptance of the programme in accordance with clause 4.2 the Client will not thereafter use his credit cards or other source of credit nor incur any further debts other than those relating to his normal living expenses. |
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| 5. |
Payment of Fees |
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The Company will receive a fixed monthly retainment fee of no more than £42.00 relating to the management of the programme. The retainment fee is payable in respect of each calender month. In addition a one time programme set up fee of no more than £200.00 will also be payable. Not withstanding the above the Company reserves the right to vary charges for specific work done on behalf of the Client that is outside of that covered by the monthly fee but will not do so without first discussing any such fees with the Client verbally and confirming any additional costs in writing. |
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| 6. |
Termination of Agreement |
| 6.1 |
The Client may give written notification to terminate the agreement with the Company at any time during the programme. |
| 6.2 |
The Company withhold the right to terminate the agreement with the client in relation to any one of the following:- |
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| 6.2.1 |
The Client breached the agreement and does not remedy the breach within 25 days of the company bringing the breach to the Clients attention |
| 6.2.2 |
A bankruptcy petition is issued against the Client |
| 6.2.3 |
The Client enters into Individual Voluntary Arrangement or Bankruptcy proceedings. |
| 6.2.4 |
Where the information provided to the Company by the Client is knowingly incorrect |
| 6.2.5 |
If the Company is affected by Force Majeure. |
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| 7. |
Confidentiality |
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The Company agrees to keep confidential all information received from or about the Client save that the Company may refer such information about the Clients income and outgoings to his creditors as it may reasonably consider necessary with a view to negotiating with the terms for the re-scheduling of their debt. |
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| 8. |
Interpretation |
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Words importing the singular number shall include the plural and vice versa and words importing the masculine shall include the feminine and neuter and vice versa. |
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| 9. |
Warranty |
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The Client hereby warrants and confirms that all information provided to the Company is true and accurate. |
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| 10. |
Notices |
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Any notices served under this agreement will be validly served if sent to the address of the party concerned as given in this agreement by the ordinary course of post. The notice shall be deemed served 48 hours after posting. This agreement shall be governed under English law. |
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