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Date:
28th February 2011 Location: Offices of RSM Tenon Debt Solutions, Manchester
Interviewee:
Dean Byron
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1. Could you tell us a little about your company?
RSM Tenon Debt Solutions are based in Manchester and we’re part of RSM Tenon, the seventh largest accountancy and business advisory firm in the UK. We are the UK member of RSM International, a global network of accountancy firms spanning more than 70 countries worldwide.
Our advisors are highly experienced and sympathetic professionals who are passionate about finding solutions for people in debt.
2. What geographical area do you cover?
Our Debt Management Plans cover the whole of the UK, including Scotland and Northern Ireland.
3. Who regulates you? How does that protect your clients?
We are a member of the Debt Resolution Forum (DRF) and are subject to annual audits carried out by the Insolvency Practitioners’ Association. We are fully compliant with the DRF Code, which ensures we comply with the Office of Fair Trading’s Debt Management Guidance (OFT 366).
4. What actually happens when someone contacts your company to ask for advice or help?
One of our expert debt advisors will call to talk through the client’s situation. They will explain all the available options and advise the client on the approach that best meets their individual requirements.
Once a client has been given all the information and advice they need to reach a decision on the solution that best suits them, they will be introduced to a specialist who will guide them through the process.
5. What are the most common concerns of those that contact you?
The most common question we are asked is what happens if the creditors do not agree to the plan. This can happen but will not necessarily cause any long-term problems to the plan itself. If a creditor decides not to agree to the plan the account will continue to fall into arrears and eventually default. Once the account has defaulted it will be likely to be passed onto an external Debt Collection Agency who, we find, are typically much easier to deal with and also much more accepting of Debt Management Plans.
6. Debt Management Plans can be confusing. How do you ensure your clients understand the process?
We confirm understanding at every stage of the process with the client. We use our own internal checklists and regularly review calls made by our advisors. We encourage clients to ask lots of questions.
7. In your experience will a Debt Management Plan affect someone professionally?
They shouldn’t affect anyone professionally however, as reduced payments are made to creditors, it will have an adverse affect on their credit rating. This, in turn, could potentially affect someone’s employment if, for example, their employer requires an annual financial health check. Fortunately such concerns are irrelevant to the vast majority of people, however we ensure that this is checked, considered and discussed with all clients.
8. How does your fee structure work?
Our charging structure is a little different to some other debt management companies. We structure our fees so that creditors receive a payment (if even of a token amount) every single month. Our set-up fee is therefore spread over the first three months of the plan to enable us to issue token payments to all creditors from the very first month.
The set-up fee is calculated at 45% of the client’s disposable income and is charged against the first three instalments. This fee covers the main costs of setting-up the plan which includes; preparing the financial statement, initial negotiations with creditors, distribution of initial token payments along with the allocation of a personal Case Administrator.
Throughout the whole of the plan we charge a management fee which is calculated at 15% of the client’s disposable income and is charged against every monthly contribution, from month one. A minimum of £25.00 will be charged. This fee covers the general running costs of the plan which includes; dealing with all creditor calls and correspondence, distribution of payments to creditors, conducting a 6 monthly and annual review along with the appointment of a personal Case Administrator.
9. Are Debt Management Plans suitable for everybody?
Not at all! This is why the time spent discussing the client’s situation is so important and not rushed. There are many solutions available and each client may be suitable to more than one.
10. How often do you recommend other solutions?
As we promote and operate a ‘best advice’ policy we will always recommend the solution that is best suited to the individual client, whether or not we are able to assist them internally.
11. Do creditors freeze interest and charges?
No one can guarantee that interest and charges will be frozen. It is at the creditor’s sole discretion if they do this or not. Some creditors are more than happy to assist by agreeing to freezing interest and charges provided that payments are maintained in line with the proposals being made by us.
However, some are not as helpful and will continue to charge. This doesn’t cause too much long-term concern for us though, as usually the account will be passed onto a third party Debt Collection Agency who are generally much easier to negotiate with.
12. Is legal action ever taken by creditors against your Debt Management clients?
Provided the payments are maintained most creditors tend not to take any further action, however, some creditors will look into obtaining a County Court Judgement (CCJ) or Charging Order to secure the debt. This is why it is so important that clients ensure they are speaking to the right people when discussing their options and that the company is completely honest about how each solution may affect them.
13. After a Debt Management Plan has started what ongoing contact is there between you and your clients?
Once a client’s Debt Management Plan is active, they are allocated a Personal Case Administrator. Each client is provided with a welcome letter and call from their Personal Case Administrator who will provide them with all of their direct contact information.
This allows each client to have a sole point of contact; someone they can speak to each time they have a query, build a rapport with and trust.
The Personal Case Administrator will keep in regular contact with the clients during the initial negotiation stages and, once all arrangements are in place with creditors, a confirmation letter is sent to explain that everything is in place. We then keep in contact each month providing each client with a statement of all payments issued to creditors, along with any fees charges for that month.
We also carry out a 6 month review of the client’s circumstances along with a full Annual Review of the client’s accounts with ourselves.
14. Why did you decide to get involved with this website?
I am so happy to be involved with the Debt Management Forum as I am able to share my knowledge and experience with those that may need it.
Being in debt is not only very stressful for some people but also seen as bit of a taboo – something not to be discussed. This shouldn’t be the case. We now live in an environment where people don’t necessarily have to know someone to share in their knowledge or learn from their experiences.
This forum allows people to see queries and problems others are experiencing, along with varied opinions and advice from specialists which is very valuable to so many people.
To contact Dean Byron please complete and submit the form below:
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