11. Client Accounts

• Members must maintain accurate, up to date client records that detail all client payments and written and oral contact with clients and their creditors.

• Clients’ monies must not be accepted, whether post-dated or otherwise, before clients have received and acknowledged in writing the written terms of business.

• Members must demonstrate, by annual audit certificates from a chartered accountant, that client monies are held in a separate "ring fenced" bank account that would not be at risk in the event of a member ceasing to trade, and is not usable by the member for the purposes of its own business. Any interest earned on the account should accrue to the benefit of the client, not the company.

• Members must pay clients’ monies to creditors within five working days of clearance.

• If clients withdraw from debt management programmes, members must refund any monies held for disbursement paid by the clients, excluding any reasonable administration fees, where these have not yet been distributed.

12. Debt Management Services

• Members must advise clients of the outcome of negotiations with creditors. This is not limited to the situation when creditors have refused to deal with members, or have returned payments, or have refused to freeze interest.

• Members must keep clients informed of any developments in the relationship with creditors, in particular the issue of default notices or the threat of issue of legal proceedings.

• Where the service provided by the member includes debt repayment the member must

• take full account of debts such as mortgage payments, rent, utility payments etc including any arrears already incurred on those debts, in setting monthly repayments, and

• reassess the payment plan and consider any necessary changes (including bringing the plan to an end) to ensure it remains in the client’s best interests, as soon as it becomes aware of material change in the client’s financial position. The client should be advised of any recommended changes without delay. Repayment plans should in any event be re-assessed on at least an annual basis and the client informed of the outcome of the reassessment.

• Clients should at the outset be given a statement of how their money is being disbursed. In addition, where a plan has been agreed, the balance owed (or if an accurate figure is not known, the best estimate), the period of payment needed to clear the debts and the fee charged by the member must be included in the statement. Clients must be kept informed of any material changes to these arrangements at the time they occur. Members should meet any request by a client for a statement of his or her position.

• Members should respond to complaints promptly and fairly. (See under “Redress”).

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13. Client Interests

• Members must demonstrate that they act solely in their clients’ best interests. In doing so they must help clients to clear their debts as quickly and efficiently as possible,and must not use high pressure selling tactics.

• Members must exercise all due discretion, in the best interests of the debtor, in deciding whether or not to accept a debtor on to a debt management programme, and must bear in mind that debt management programmes are not suitable for all debtors

• A realistic assessment of the financial circumstances of the consumer must be made before advice is given. Verification of information given should be obtained in the form of pay slips etc.

• Members must keep in strict confidence information given to them by their clients, excepting the disclosure of relevant information with express consent of the client, to the relevant creditors (or exceptionally for the purpose of the independent investigation of a complaint)

• Members must advise clients on the importance of paying secured loans and prioritising debts.

• Any advice given to the client to cancel direct debits and standing orders prior to a repayment plan being agreed with creditors must be demonstrably in the best interests of the client. Members must clearly warn clients of the risks and consequences of this course of action if they advise it.

• Members must not lend money to clients for the purpose of debt consolidation. However DEMSA members may accept referrals from lenders or credit brokers, provided these are done with the informed prior consent of the consumer.

• Members must ensure that proper records are kept for all cases and that adequate electronic means of storage, capable of retrieval are in place. Upon completion or termination of a programme, members will provide the client with a full statement of the history of the programme and return any important documentation eg forms P60 etc. Any documentation, paper or electronic, should be retained for an appropriate period in accordance with Data Protection Guidelines.
  
  
• Members who provide other services or products such as Payment Protection Insurance must ensure that clients “opt in” to the purchase of such products.

14. Lenders

• Members  must provide lenders with clear information about their terms of business and methods of operation, as requested.

• Members must take all steps necessary and appropriate in order to provide lenders with accurate details about their clients’ income and expenditure in order to allow the creditor to make an informed judgement about proposals for repayment. If requested verification of information must be provided.

• Members must provide lenders with clear payment proposals, endeavouring to ensure pro rata distribution of funds to all creditors, excepting very small payments.

• If a client withdraws formally, in writing, from a repayment programme, members must inform the relevant lenders, in writing, within seven working days of receipt of such written notice.

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