Whilst many debt consolidation services or debt management companies may struggle with the new debt management protocol, Lewis Alexander Financial Management openly embraces this new and long overdue initiative.
The recently released Government protocol relating to personal debt management plans in the UK is not only designed to ensure that debt consolidation companies involved in the industry are compliant with OFT (Office of fair Trading) debt management guidance but most importantly to ensure that the vulnerable UK consumer receives the best possible advice and service at the most competitive cost or price.
The new debt management protocol asks that clients initial payments for a debt management plan are not retained by the debt consolidation service or debt management company they have selected but are in fact dispersed to creditors immediately, it is also expected that any initial set up fee charged would be taken out of no less than the first 6 monthly contributions from the client. This is meant to reduce the clients debts more rapidly but is based equally upon the clients respective creditors also adhering to the protocol with regard to interest and charges currently being applied to the consumers accounts, if any. The practice of retaining initial payments has usually been used by the debt consolidation industry to cover the internal administrative costs involved in setting up a consumer debt management plan.
Lewis Alexander Financial Management is currently developing a “turn key” personal debt consolidation platform which will be available online for UK consumers. This pioneering, Internet based, consumer self managed, debt solution environment will offer a highly efficient and cost effective option which will dramatically reduce if not eliminate the initial administrative set up costs that apply to current fee charged debt management plans in the UK.
It is envisaged that usage of the personal debt consolidation and management software will be charged at approximately one third of the current monthly fees on offer, this is when compared to the average fee charged debt management plan currently available when using conventional debt consolidation services or debt management companies.
The Lewis Alexander Internet based, self managed debt solution is being designed to be as user friendly as possible.
The online resource will provide compliant best advice for the consumer relating to the different debt management and debt consolidation solutions available.
When a user registers, they will be asked to complete a simple questionnaire outlining their personal and financial circumstances. This information will be dynamically translated by the system in order to identify the debt management or debt consolidation routes available to that specific user.
- Faced with potentially more than one debt consolidation solution to choose from, the user will be able to gain online financial debt advice via the systems knowledge base.
- However, personal and conclusive advice will be available if required via email and telephone to assist a prospective client to make their final decision.
Having chosen the desired debt management or debt consolidation solution, the user will be able to set up their own online file which will already contain their financial statement and particulars based on the information they have provided in the initial questionnaire.
- Their file will also contain all the relevant creditor correspondence and templates thus enabling them to activate their own debt management or debt consolidation solution.
Based upon bespoke, tried and tested internal debt management software developed by Lewis Alexander, it is envisaged that the online system will provide all of the facilities to the user that is currently available to an internally based adviser at Lewis Alexander Financial Management.
Should you be struggling with personal financial problems and require the help and advice of a trained personal debt consultant, then please call our personal debt helpline in absolute confidence using;
- 0800 018 6868
- calls are usually FREE from a UK land line.
- From mobile it may be less expensive to call 0161 872 3383
