How Bright Oak Earns Income


We are a commercial (fee-charging) provider of debt management plans. In some instances we may be paid by third parties where we introduce clients that we have advised to look at other different types of debt solutions.




Bright Oak does not charge you for providing initial debt advice via telephone, web, email, or personal meeting.


Debt Management Plan


If we provide you with a debt management plan the full detail of our charges will be provided to you in writing in advance of commencement (in your “Terms and Conditions” document).


Our debt management charges will be a “Monthly Fee” which runs throughout the plan. We do not charge separate upfront fees for setting up your plan. All of the work that we carry out for you is incorporated in our “Monthly Fee”.


The “Monthly Fee” covers set-up services including compiling financial and background statements, providing repayment proposals to creditors, responding to creditor contact by telephone and in writing, and attempting to negotiate arrangements with your creditors on your behalf. The “Monthly Fee” also covers our continuing communication with your creditors, communication with you, and the distribution of your creditor payments throughout the course of your DMP.


Your “Monthly Fee will usually be 20% of your total monthly payment into your plan. This is subject to a minimum fee of £37.50 per month and a maximum fee of £75 per month. Upon the advice of the HMRC we do not charge VAT to you on any sums payable by you to Bright Oak. We do however reserve the right to charge VAT should HMRC, or any other relevant body, advise us that the position has changed.


Debt Management Fees Example


Mr Smith has £8,000 of unsecured debts. An affordability assessment confirms that he is able to pay £200 per month into a debt management plan. A “Monthly Fee” of £40 (20% of £200) is charged for our work during the set-up phase of the plan and subsequently for the continued administration, negotiation and payment distribution associated with Mr Smith’s case.


Accordingly £160.00 (£200 minus £40) is being distributed each month to Mr Smith’s creditors during life of the debt management plan.


Assuming that interest and charges are promptly frozen (which cannot be guaranteed) the repayment term would be approximately 50 months (4 years and 2 months). The total amount of fees charged over this period would be £2000. The total payment made into the debt management plan would be approximately £10,000.


Other Bright Oak Services


If non-standard services are provided by Bright Oak Ltd, the details of our proposed fee will be presented to the client for their approval in advance of any work beginning.


This might apply, for example, to the negotiation of “full and final settlements” on behalf of a client.


Introductions to Insolvency Practitioners


Insolvency practitioners handle work on debt solutions such as an IVA, a Protected Trust Deed, Debt Arrangement Schemes and Bankruptcy/Sequestration.


Bright Oak does not charge our clients for assisting with them with the preparation of a case file that can subsequently be used by an insolvency practitioner to help set up one of these debt solutions.


In some circumstances we may be paid by an insolvency practitioner to whom such a case is introduced. The payment would be for the element of the work that had been carried out by us.


If you ask us, we will disclose the amount of any such payment.


Our insolvency practitioner partners are The Debt Advisor Ltd (IVAs) and Wylie & Bisset LLP (protected trust deeds, sequestration/bankruptcy, and debt arrangement schemes).


Introductions to Mortgage or Finance Brokers


Sometimes we are asked by clients to refer them to a mortgage broker or finance broker. Where this occurs, Bright Oak does not accept introductory payments.

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Bright Oak, Cardiff House, Priority Business Park, Barry, CF63 2AW. Tel: 02920 492661.

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02920 492661

0800 0437222

Debt Management Protocol logo link Brightoak Twitter
Debt Management Protocol logo link Brightoak Twitter