Debt Help & Advice - Common Questions Answered

What is a creditor?

Anyone that you owe money to.

What is an unsecured debt?

Any debt that is not secured on a property or vehicle.

What is a secured creditor?

Anyone you owe money to, who has a charge over your property.

What is a joint debt?

A loan or credit card where both parties have signed the agreement. If you have a credit card in your name but on your partners account, or vice versa, this is not a joint debt.

When should I stop paying my creditors?

As soon as you decide to do a DMS or IVA with us, provided that you return the forms within a few days.

How do I stop paying Standing Orders and Direct Debits?

Simply instruct your bank by letter or telephone but you will need to keep paying your mortgage or rent, utilities and insurances etc. Send a copy of your cancellation letter to your creditors as well.

If I stop paying my creditors won't they take me to court?

Creditors won't take you to court once they are aware you are doing a DMS or an IVA, in any case the judge would adjourn the case pending the outcome of the DMS or IVA.

What will happen if my bank is also a creditor?

You should instruct them to stop paying themselves, but they will probably refuse to do so. In those situations you will need to open a new bank account at a bank not connected with any of your creditors.

What if I am unable to open a new bank account?

Contact Valour Financial Management for assistance to open a new account.

Why will my creditors accept a reduced repayment arrangement?

As a leading financial company, Valour Financial Management can only help people who are genuinely unable to meet their credit commitments. Through dealing with hundreds of clients every day, we are in a very strong position to agree reduced payments with your creditors. Creditors are not obliged to reduce payments or to freeze interest; these points are negotiable and should not be viewed as a right.

How do you decide if I am eligible?

We use strict guidelines laid down by the British Banking Association when deciding how much you can reasonably afford to pay. When working out your single monthly payment we ensure it is both affordable for you and in line with the creditors' expectations.

What about my future credit rating?

Your ability to obtain further credit may be affected. However, since the purpose of the programme is to help clear the debt that you are already having problems handling, this must remain the priority. The programme relies heavily on your payments being made consistently. This will help build a payment history that will allow us to recommend you to lenders we use for mortgages, loans etc.

What happens to my credit rating?

Your credit rating may be affected, however, since you are experiencing some problems maintaining payments, and due to your level of indebtedness your ability to borrow will already probably be impaired. Significantly, when you have finished, we will ensure you receive a letter to confirm that all your debts are satisfied. The payment history you build with us is a valuable recommendation later.

Are your services confidential?

Valour Financial Management is licensed under the Data Protection Act and Consumer Credit Act. We appreciate the sensitive, personal nature of the information we hold and pride ourselves in our extensive procedures aimed at safeguarding confidentiality. We even use text messages as a discreet form of contacting you rather than burdening you with more paperwork.

What if my circumstances change?

Your payment to Valour Financial is sensitive to any changes in your circumstances. You may request a review of your payment amount at any time.

Company Reg No. 5676067 | CCL 592013 | Data Protection No. Z9614881 | Valour Financial Management is a trading style of Ventures in Finance Ltd