DPF Briefing

September 2000

Federated Credit - debt advice

FCL, one of the UK’s leading debt advisory companies, successfully deal with thousands of debt cases each year. Even professionals through circumstances beyond their control—such as illness or marital breakdown—become trapped in a spiralling burden of debt. As the debts mount, their work suffers and they enter a cycle of despair.

The decision to call a debt advisory company is a tough one and many debt management companies charge up-front fees for handling cases. FCL impose no up-front charges—the last thing clients needs is another bill. Instead once the agreement has been successfully reached, the client’s creditors grant FCL a fee in return for ensuring that they receive prompt and regular payment.

FCL give free and confidential advice to all clients who contact them regardless of their financial situation and at no time will their clients receive an invoice.

FCL

Ensure clients understand the options open to them in order that debt-repayment programmes are realistic and achievable; Offer advice without asking for sensitive personal information;

• Offer immediate advice to all clients;

• Provide continued personal support and advice, assigning each client a case officer who is available at all times for help with concerns or problems that may arise;

• Have close links with the Money Advice Association, a respected independent body concerned in consumer rights issues and changes in social policy, and are governed by the Joint Insolvency Monitoring Unit, complying with the highest standards set;

• Give clients a specific date by which they will have cleared their debts;
• Never take any up-front fees and never issue an invoice to clients.

FCL attach the greatest importance to an ethical approach. Most debt problems can be solved while avoiding the humiliation and distress of bankruptcy. With their help, thousands of people have worked their way out of apparently insurmountable difficulties and have been restored to a clean bill of financial health. But there is no quick fix; most debts take up to five years to work off. That’s why FCL views all arrangements as a long-term partnership with their clients. Every client is assigned a case officer who is responsible for all the client’s needs throughout the arrangement, conducting an annual review of their income and expenditure and providing advice if their financial position changes.

Some other debt advisory companies do not offer the same service as FCL and charge the clients up-front fees regardless of whether or not an arrangement is negotiated with the client’s creditors.

For further information on debt related issues, please call FCL on 0800 716239