Become an Introducer Today!

Personal debt? Visit our dedicated debt help site >>

Informal Full & Final Fee FAQs

Q. What is an Informal Full & Final?
A. This is an arrangement between our company and the clients' creditors to accept a reduced lump sum as settlement of the debt in full. We request that the clients' credit file be marked as 'satisfied' upon payment of the debt as agreed in the settlement.

Q. How does the client qualify for this?
A. The client must usually be making regular and consistent payments into a debt management plan for at least 6 months before creditors would consider offering a settlement of their accounts.

Q. Is this arrangement legally binding?
A. The arrangement is as stated, informal. Creditors are not legally obliged to accept reduced offers of settlement, but where The Debt Advisor has negotiated a reduced settlement we will not make a payment to the company until written confirmation of agreement has been received.

Q. How will this affect the clients' credit file?
A. Upon payment of the agreed settlement amount The Debt Advisor requests that the company contacts the credit reference agencies to advise that the debt has been 'satisfied'. This appears on a client's credit record for 6 years; the same length of term of any credit marking. Marking the account as 'satisfied' will appear as if the debt has been paid in full. Creditors can also mark the file as 'Settled' which also deems the account uncollectible.

Q. Does the client have to settle all of their accounts?
A. No. Upon consultation with the client The Debt Advisor can determine the accounts which will benefit the client most to settle. The Debt Advisor will endeavour to leave the smallest remaining balances to allow the client to successfully manage the debt as part of a continuing debt management plan.

Q. Why do we charge fees?
A. Clients pay for our professional, personal service with the skill, expertise and experience to negotiate with creditors the best possible settlement for the clients' accounts. Our strong relationship with creditors means that we can get the very best offers in place to help the client out of their current financial difficulty.