Faq's

Definition of FAQ

Most Frequently Asked Questions

1. What is a Debt Management Plan (DMP)?

A Debt Management Plan is an informal arrangement between a debtor and a creditor that addresses the terms of an outstanding debt. Our DMP exists to assist debtors with multiple EMIs on all their unsecured debts to a single affordable EMI, with legal support from lawyers and reduce creditor’s harassment.

2. Who can benefit from a DMP?

A Debt Management Plan (DMP) is ideal for individuals who are struggling financially and have missed EMI payments on their unsecured loans or credit cards. It’s especially beneficial for those who are suffering from harassment or need legal assistance and want to regain control of their finances, improve their credit score, and eventually become eligible for future loans.

3. How does a DMP work?

Our trained financial advisors will
establish your financial circumstance and work out how much money you can
comfortably afford to pay towards your outstanding debts, this is called your
‘Disposable Income’ excluding necessary expenses. Once your disposable income
has been determined and you have fully signed up with our services, our legal
and paralegal will liaise with your creditors on your behalf and negotiate a
realistic and workable repayment plan that suits both parties.

4. What documents are required from me?

The information we collect from you to establish your financial circumstance will need to be proven when negotiating with your creditors. You will need to provide certain documents upon our request, like pay slips and utility bills.

5. I am being harassed by collection agents, how can you help with this?

Our trained debt lawyers will be your shield between you and any unlawful behavior conducted by any collection agent. We will liaise directly with all your creditors and the authorities if there is any evidence of harassment. We are fully aware of the aggressive behavior used by collection agencies and we have a proven record of minimizing this issue. Once you have signed up to our debt plan, you can direct all their communications to our legal team who will be vigorous in protecting you. In few cases, when harassment persists and aggravate then our lawyers would share NC draft to file a police complaint.

6. Can the bank reject your offer when setting up a DMP?

Creditors may initially not accept the reduced EMI in a Debt Management Plan (DMP) due to a default on the original loan agreement. Negotiations can take up to 6 months, during which it’s vital to maintain DMP payments. Creditors may request the full EMI, but direct all communication to us as your representatives until the DMP is finalized.

7. Would a settlement be more beneficial for me than a DMP?

Opting for a settlement will result in a “settlement” entry on your credit file, signaling to future creditors that you were unable to repay the full loan amount. This can significantly lower your credit score, making it difficult to obtain further credit. In contrast, a DMP is not recorded on your credit file. Since regular payments are made to all your creditors through the DMP, your credit score will gradually improve. By the time you complete your DMP, you’ll be in a better position to apply for new credit.

8. What if there is legal case filed against me during the DMP process?

If a legal case is filed against you or if you are issued with a Legal Notice during the DMP process, our lawyers will assess the best course of action and will advise and assist you in defending it. In other circumstances where a lawyer needs to appear in court, charges will be shared as per the requirement.

9. Why would my creditor accept the offer?

Creditors aim to profit by lending money and charging interest. When you’re unable to repay, their first option is oftento offer a settlement. Once you’re enrolled in our DMP, our legal team steps in to negotiate on your behalf, highlighting your financial hardship and willingness to repay. Creditors are more likely to negotiate when they see consistent payments and legal representation. It may take a few months, but ourteam works to set up the DMP.

10. Will my interest will be freeze?

Initially, creditors may not freeze the interest and charges because they need to ensure that you are honoring the new payments. After six months, we will request that your interest and charges be frozen or reduced depending on a case-to-case basis. For credit cards, we will ask for the outstanding amount to be converted into an unsecured loan with a try to reduce interest rate. 

11. Will the payment made be considered towards the principal debt or the interest?

Payments are applied based on your revised
EMI and loan classification, considering missed payments, penalties, and
interest. The revised EMI reduces the total outstanding debt, including
principal, interest, and charges. Creditors require consistent payments over twelve
months or more before considering requests from our lawyers to freeze or reduce
interest.

12. Will my harassment stop?

We start communicating with your creditors immediately by posting your enrolment via call forwarding system. Once you join our DMP, we’ll notify your creditors to direct all communications to us. You’ll receive a letter of engagement to show creditors if needed. If harassment continues, our legal and paralegal team will take action to stop it. This is an ongoing effort to protect you from harassment and with constant endeavor gradually it is controlled.

13. Do you have tie up with banks?

We work with many financial institutions
and have strong relationships with them. While we may not have ties with all
lenders, our debt management plan benefits everyone involved. Regardless of
these connections, we follow regulations set by authorized bodies, ensuring
fair treatment for all clients.

14. How old is your company?

Our parent company has 35 years of experience in the UK debt management industry. We entered the Indian market in November 2018. All our financial advisors are UK-trained, and we offer bespoke software, a portal, and an app for real-time tracking of your DMP. Clients can monitor payments and correspondence online. Our panel of lawyers, advised by a renowned Mumbai Chambers of Barristers, handles all legal matters related to consumer debt.

15. What is the refund process?

This Debt Management Plan (DMP) is an informal agreement, and you may cancel the contract at any time without incurring any penalties. If you choose to cancel within the first five days of enrollment, you will be entitled to a refund of your initial fees i.e., the first two payments subject to eligibility criteria outlined in the Terms and Conditions. The third payment, if received, will be disbursed to the creditors for whom NEFT details have been provided. Upon cancellation, we will also notify all your creditors regarding the termination of the contract. Please note that any concerns or queries with regards to refund shall be communicated via email only any other form of communication will not be considered.

16. What if I have surplus money available?

If you have surplus money available, you must inform us so that we can distribute it towards your creditors. This will help you complete the plan and become debt-free sooner than the plan has quoted.

17. What if I want to terminate my contract?

This DMP is an informal agreement, and you can cancel this contract at any time without incurring any penalties. If you choose to cancel within the first five days of enrollment, you will be entitled to a refund of your initial fees i.e., the first two payments subject to eligibility criteria outlined in the Terms and Conditions. The third payment, if received, will be disbursed to the creditors for whom NEFT details have been provided. Upon cancellation, we will also notify all your creditors regarding the termination of the contract. Please note that any concerns or queries with regards to refund shall be communicated via email only any other form of communication will not be considered.

18. Would my EMI remain same?

We will review your DMP every six months, and if there are any changes in your circumstance, then the DMP repayment amount will change accordingly.

19. Will my credit score be effected?

This will depend on your current debt position. If you have already missed any EMIs, then your credit score has already had an adverse effect to reflect the missed payment(s). Our DMP is tailored to help you become debt-free while improving your credit score, enabling you to qualify for new loans after successfully completing the debt management program.

20. What are your fees?

We charge an initial setup fee equal to two months of your disposable income (DI/EMI) to cover the setup of your Debt Management Plan (DMP) and legal work. This includes handling creditor communications and harassment. After setup, a monthly management fee will apply, based on your affordability, to cover ongoing plan management and legal support. Payments to creditors begin once the DMP is finalized.

21. Why do I have to pay 2 months fees?

It is during the first two months that our lawyers will carry legal work to set up your DMP plan and deal with the harassments.

22. Why would I still pay interest during a DMP?

Whether you are on a DMP or not, you would still pay interest on your loans. After going onto a DMP, we are asking your creditors to accept reduced EMI, and in most cases, after you had defaulted on the original agreement with the creditors. So initially your creditors are not going to freeze your interest until they are satisfied that you will maintain the new arrangements.

23. Can I pay my fees after 2 months?

We have our panel of lawyers that set up your DMP plan. We must pay our lawyers for the work that they have undertaken which is billed to us on a per case basis, which is the reason why we need to be paid prior to them undertaking these tasks.

24. Why do you charge a monthly management fee?

We charge a monthly management fee to handle your DMP, making payments to creditors, and regularly liaising with them. You’ll have a dedicated account manager as your single point of contact. We also adjust your DMP if your circumstances change and review it after six months for any updates.

25. When can I see payments reflected on my loan account?

We provide monthly payment receipts for all payments made to your creditors which will reflect within 2 to 3 days of payment. In some cases, payments may take up to 90 days to reflect in your loan account due to banks processing policies and residual processing. These payments will also reflect on your portal or App account for real-time updates.

26. How would I get to know the banks are receiving the payments?

You can verify that our payments are reflecting on your loan account. If they aren’t, we’ll provide proof of payment via email. In any case, these payments will reflect on your portal or App account for real-time updates, which you can share with your creditors. The only reason payments may not appear is if we haven’t received the correct bank details for your loan account.

27. What is the tenure for the plan?

The PDP is designed to help you whiles you are going through your financial difficulties; this is NOT designed to take over or to restructure your existing loans. The tenure will depend on how long it will take you to get back on your feet and have the financial standing to start repaying the original EMI or write off the loan by paying it in full or settlement, which we can assist and obtain a good discount on any settlement.

28. Can I increase or decrease the payments?

Yes, you can adjust your payments based on your financial situation. Initially, we conduct a financial review to determine payment amounts. If your circumstances change, we’ll reassess your finances to modify the payments. Additionally, if creditors offer any loan relief that benefits you, we can adjust payments accordingly.

29. How will you handle the visits from collection agents?

While creditors have the right to visit your home or workplace, they must notify you in advance. If you receive such a notification, share it with us, and our paralegal team or notify us on your portal or App account and we will work to prevent the visit.

30. Can we enroll for only the accounts we want to consolidate?

Yes, based on our financial advisor’s consultation.

If you have any questions about SingleDebt, online FAQ’s or procedures, please email us at: info@SingleDebt.i