Debt Management Fees

The fees on our Debt Management Plan (DMP) fall into two categories;

  • Initial Fee – this is calculated at 33% of your monthly payment and is deducted from the first six months payments into your Debt Management Plan. This money is not paid to your creditors. Our initial fees will be deducted from your monthly contribution before a distribution is made to your creditors.
  • Management Fee – this is deducted from your monthly contribution before a distribution is made to your creditors. This is calculated at 15% of your monthly payment where a minimum fee of £25.00 will be charged. Your monthly Management Fee will start from your first month from entering into your DMP with Unity.
  • Total Fees – For the first six months is 48%

Many Debt Management companies delay making payments to creditors while they collect their fees. This means it can be several weeks, or even months, before creditors receive any payment. This can put you under considerable pressure from your creditors and actually make your situation much worse.

It is our priority at Unity to make sure that your creditors receive payment from you at a level you can afford from the first month you make payments to us. We do this by spreading our initial fees over the first three months of your DMP. This reduces creditor pressure from the first month.

What our fees cover:

The “Initial Fee” covers the costs of setting up your Debt Management Plan, this includes;

• Preparation and completion of your Draft Financial Statement
• Carrying out a review of your case once you have returned the information we have requested
• Preparation of your Financial Statement and payment schedule to your creditors
• Negotiation of reduced payments with your creditors including agreeing suspension of interest and charges, where possible
• Distribution of token payments to your creditors from your very first payment into your DMP to reduce creditor pressure
• Appointment of a Personal Case Handler to ensure someone is available at the end of the phone to answer any questions you may have

We give you a fourteen day ‘cooling off’ period so that you have enough time to fully consider your decision. If you decide that you do not want to proceed within fourteen calendar days from the day we receive your first payment, we will refund any payments you have made. Your “Initial Fee” is not refundable outside of our 14 day cooling off period.

The monthly “Management Fee” covers the on-going maintenance of your DMP, this includes;

• Distribution of your monthly payment to your creditors
• Dealing with creditor correspondence and calls on your behalf
• Providing you with a monthly statement detailing all payments to creditors after deduction of our fees
• Completion of 6 monthly reviews with your creditors
• Completion of an annual review of your case to ensure DMP is still appropriate in your circumstances
• Allocation of your Personal Case Handler who is available to answer any queries you may have regarding your DMP and finances

Here’s an example of the fees and payments on a typical DMP:

  • Based on unsecured debts of £20,000
  • Based on a Monthly payment of £250.00
  • Initial Fee (deducted for first 6 months): £82.50
  • Monthly Management Fee: £37.50
  • Estimated* length of DMP: 7 and a half years
  • Total fees charged over estimated period : £3,870

*This is based on the assumption that interest and charges remain frozen for the life of the DMP and payments are made to Unity every month, without any delays.

If at any time you feel that you are struggling to afford your agreed monthly payment, we can review this with you, and where necessary renegotiate with your creditors on your behalf. We can renegotiate with your creditors – they may agree to accept smaller payments if it looks like the best way of bringing your debt management plan to a successful conclusion.

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CONTACT USOur Office
Our Office is located in the heart of Manchester City Centre
Fabric Building, 30 Queen St, Manchester M2 5HX
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CONTACT USOur Office
Our Office is located in the heart of Manchester City Centre
Fabric Building, 30 Queen St, Manchester M2 5HX
https://www.unitycorp.co.uk/wp-content/uploads/2020/12/logounity.png

© Unity Corporation Limited. Registered in England & Wales - Registered Office, Fabric Building, 30 Queen Street, Manchester, M2 5HX. Registration Number 08068447.