FAQ's
01. What’s the difference between an “Associate” and a “Full Member”?
“Associate Member” is designed for those who are not proactive in the adverse market and who only come across a case every now and then. It ensures
that you remain compliant and adhere to the MCoB rules, particularly if the client has a history of missed/late
payments. It also presents an earnings stream which would otherwise have been lost.
“Full Member” is designed for those who are proactive in the adverse market or wish to be, because they
recognize the growth in this area. And of course the same compliance reasons as above apply.
02. So what are the advantages of becoming a full member?
There are many benefits to becoming a paid-up member, particularly if you are proactive in the adverse
market. It can pay for itself many times over in a short space of time. To name a few:
You get
a) Your own website
-
Your own back-room office with all the tools and facilities you need
- Case Tracking Facility
- Case Log
- Call-back facility
b) Enhanced fees
c) Access to our EXCLUSIVE Bankruptcy Annulment Facility, with training in how to identify potential applicants
d) Help with adverse lead generation
e) Access to additional earning products
f) Training and on-going support
03. What are the alternative solutions?
MCoB requires mortgage intermediaries to investigate all debt
solutions. This would help you not only to adhere to the rules but also
to potentially increase your income by significant amounts, simply by delivering the full range of solutions to your clients. The alternatives are:
- Debt Management
- IVA
- Full and Final Settlement
04. What is the difference between Debt Management and an IVA?
Debt Management: You agree to pay your creditors a set amount each month. In return the creditors agree to freeze the debt so that no more interest is charged.
IVA: A formal agreement. You pledge to pay a set monthly sum with payments lasting between 3
and 5 years. A lump sum may also be included in the settlements, and in return creditors will agree to write off a portion of the debt.
05. What’s Full and Final Settlement?
Full & Final Settlement is where a lump sum (usually equity in the property) is offered in settlement, and in return creditors will agree to write off a portion of the debt. A debt consolidation re-mortgage will usually arise from this option. It goes through similar procedures to an IVA except that it does not impair client’s credit file as an IVA would do. It will not wipe out previous missed payments/default which have already been registered on the credit file but once the Full and Final Settlement has completed the entry would show as “Settled”.
06. Is it going to cost me anything?
“Associate Member”: There are NO set-up or monthly recurring costs.
There is a 15% admin fee on all cases which complete. This will be deducted from the fee you receive.
“Full Member”: There is a £475 set-up cost which gives you all the benefits listed
in 2. above – plus more!
There are no monthly recurring costs, and no admin fee is charged on any of the
cases. You receive the full amount.
07. Why do I need to register?
Unless we know who you are and where to contact you, we would not be able to update you on progress of your cases; nor would we be able to pay you!
08. Will you contact my client?
As soon as the case has been submitted to us the client will be contacted by a case handler
(within 24 hours). You must ensure the applicant is aware that you are referring it to a debt specialist and to
expect a call.
09. Will you be discreet?
Absolutely! The case handler will only speak to the applicant and will respect their right to
privacy. Therefore they will not leave a message, so it’s important that during this period, the applicant does not ignore calls.
10. How do I monitor progress?
The IP reports progress to us on a weekly basis, and any movements
in the case are reported to you by email, usually on a weekly basis.
Full Members are able to log into the members area and access cases any time. We amend the entries as updates are
received.
11. Who owns the client once I’ve submitted an enquiry?
You do – always!
12. Do you cross-sell?
Absolutely not! If there is a product which we think your client could benefit from, we will bring it to your
attention. It is then up to you to contact the client and make the sale.
13. My client has been advised to make himself bankrupt. Can you still help?
Bankruptcy is the ultimate step and should only be considered after all the other options have been
exhausted. It is always worth having a second opinion, as at this point it would not cost the client anything and
he/she would therefore have nothing to lose.
14. My client is a bankrupt. Can you still help?
Possibly – if he has a property and has sufficient equity to clear the debt. Our “Fresh Start” Bankruptcy Annulment facility would prevent a forced sale to clear the debt.
15. My client is a discharged bankrupt. Surely he’s over the worst of it?
If he is a tenant, then possibly yes he is (although it will remain on the credit file for 6 years). If he’s a homeowner then he most probably
isn't! The trustee has up to 3 years to force a sale of assets (including residential
home). During this time the costs will continue to mount up, and by the end of the three years
your client could owe up to 3 times the original debt! Our Fresh Start Bankruptcy Annulment could be an option.
16. Can you tell me a bit more about Bankruptcy Annulment?
Our Fresh Start Bankruptcy Annulment is only available via Debt Distress.
It is designed for homeowners and, for the successful applicant, will wipe away the bankruptcy as though it never happened! If the bankrupt is a homeowner and has sufficient equity in the property to repay all the debts and costs, then the sooner he applies the less costs will accrue. The icing on the cake will be having the bankruptcy wiped away enabling him to make a true Fresh Start. This process will also generate a remortgage for the
broker!
17. How much will I get paid?
Associate Member:
-
Debt Management: 50% of the first month’s payment less 15% admin fee
- IVA: £650 - £700 (depending on volume) less 15% admin fee
- Full and Final Settlement: £500 less 15% admin fee (plus a remortgage – there is no admin fee charge on the remortgage)
- Bankruptcy Annulment: £1000 less 15% admin fee (plus a remortgage – there is no admin fee charge on the remortgage)
Full Paid-up Member:
-
Debt Management: 50% of the first month’s payment
- IVA: £650 - £700 (depending on volume)
- Full and Final Settlement: £500 plus a remortgage
- Bankruptcy Annulment: £1000 plus a remortgage
18. When will I get paid?
Debt Management: on receipt of 1st month’s payment
IVA: upon agreement with creditors
Full and Final Settlement: Upon completion of the remortgage
Bankruptcy Annulment: Upon completion of the annulment (approx. 6-8 weeks)
19. How is payment made?
By BACS
20. Is the client still mine after I'm paid?
Most definitely. We would encourage you to keep in regular contact with the client.
If their circumstances change, you will want to be the first person they contact. Also, in the cases of Debt Management and IVAs, two years down the line they could be in a position to settle the debt with a debt consolidation mortgage.
