Our fees are deducted from the monthly payment you make to us. This payment is called your disposable income and is the amount of money that you have left to spend after we have assessed what your income and expenditure is.
If you commenced your Debt Management Plan (“DMP”) with MoneyPlus, our fees will have been explained to you at the start of your plan. If you commenced your DMP with a different company, you may be on a different fee structure to the one described below. We will have communicated to you at the point we took over the management of your plan what fees you are paying. We may change your fees to our structure described below but we will let you know if we intend to do this.
Our fees relate to the arrangement and management of your DMP. The total fees that we will charge you will depend on the length of your DMP which is reliant on your disposable income, your debt, any concessions we achieve on your behalf in relation to the freezing of interest and charges and you maintaining your payments.
Monthly management fee
We will charge you a monthly, fee being the lower of £44.50 or 49% of your monthly payment, from your first month until your DMP completes or is cancelled. This fee represents the work that we do to manage your DMP, such as distributing your payment across your creditors, communicating with your creditors on your behalf, maintaining arrangements which could freeze interest and charges as well as communicating with yourself. We have capped your monthly management fee so that the majority of your payment to us will always be used to repay your debts.
One-off arrangement fee
Given the work involved in setting up your DMP and negotiating with your creditors, we will charge you a one-off arrangement fee of £299. In addition to the usual monthly management fee this will be deducted from your monthly payment until it is repaid, for up to the first 12 monthly payments from the start of your plan. As mentioned earlier, we will cap the combined management and arrangement fees so that the majority of every monthly payment made goes towards the repayment of your debts.
Case study example
Mr Example owes £10,000 to 9 creditors. Having carried out an assessment of his income and expenditure, we have agreed with him that he can afford to make a monthly payment of £275. This is his disposable income. Mr Example will be charged an ongoing monthly management fee of £44.50 and a one-off arrangement fee of £299.
e.g. For the first three monthly payments Mr Example will pay £275 per month, MoneyPlus will distribute £140.25 to the creditors and MoneyPlus will deduct a monthly management fee of £44.50 and an arrangement fee instalment of £90.25.
On the fourth monthly payment, Mr Example will pay £275, MoneyPlus will distribute £202.25 to the creditors and then will deduct the management fee of £44.50 and the final instalment of the arrangement fee of £28.25.
From the fifth monthly payment onwards, Mr Example will pay £275 and MoneyPlus will distribute £230.50 to the creditors and will only charge a monthly management fee of £44.50.
Overall, assuming Mr Example’s disposable income and circumstances remain the same throughout the duration of his DMP, his debt level doesn’t increase, we manage to get all 9 creditors to agree not to charge any further interest and he doesn’t miss any payments, it will take him 45 months to complete his plan and become debt free. In that time he will have paid £2,301.50 in fees to us.