GREGORY, PENNINGTON LIMITED BUSINESS CONDITIONS

Introduction

We want your decision to use Gregory Pennington's financial management services to be the best decision you ever taken towards regaining control of your financial situation. To that end we aim to be completely transparent

in all our dealings with you, hence these Terms of Business explain our obligations to you and yours to us. They will be at the heart of our relationship, and our contract with you, so please take time to read them carefully.

Important note

These Business conditions apply to all Gregory Pennington clients and explain our obligations to you and yours to us. They may be added to or changed by particular terms for some of our other services such as the Think Banking Account. These other terms will be brought to your notice at the appropriate time.

Definition of terms

"Agreement" means the agreement between You and Us made mainly on these Terms of Business.

"Cleared Funds" means (i) any cash, postal orders or banker's drafts made payable to Us which We have received from You; (ii) any monies which We have received into our bank account or Client Account from You by electronic transfer (such as by standing order, direct debit, bank giro credit transfer or Think Banking Account transfer) and which have not been returned unpaid within four working days, and/or (iii) any cheques which We have received from You which have not been returned unpaid within seven working days.

"Client Account" means the account where any monies held on behalf of our clients are kept and which is not used for the purpose of our own business.

"Client Authority Form" means the form enclosed with these Terms of Business which We ask You to sign to give Us authority to contact your Creditors and to act on your behalf.

"Creditors" means all of the people or businesses You have told us You owe money to and who are included in your Payment Programme.

"Fees" means the Initial Fee and the Monthly Fee. An estimate of the total Fees payable by You to Us under this Agreement is set out in your draft Payment Programme issued by Us in accordance with clause 2.1 below.

"Initial Fee" means your first Monthly Payment, which is paid by You to Us as an initial fee for our Services, and which is not used to pay your Creditors.

"Monthly Fee" means the monthly Fee payable for our Services. This is an amount equal to 15% of your Monthly Payment, apart from your first Monthly Payment which is the Initial Fee, subject to a minimum of £25 and a maximum of £100.

"Monthly Payment" means the total amount which is paid every month by You to Us throughout the Payment Programme. Apart from your first Monthly Payment which is the Initial Fee, this is made up of the Monthly Repayment to be made to your Creditors, and our Monthly Fee and any other payments as instructed or agreed with You (including any PPI premiums).

"Monthly Repayment" means the part of the Monthly Payment to be paid by Us on your behalf to your Creditors.

"Payment Programme" means the programme of Monthly Payments by which You repay your Creditors through Us and pay for our Services, prepared by Us based on the information provided by You, as revised from time to time.

"PPI" means any Payment Protection Insurance that You may agree to in connection with this Agreement.

"Services" means the services We agree to provide You with under this Agreement.

"Term" means the period running from the start of this Agreement as explained in section 1.2 until we stop providing You with Services. An estimate of how long the Term will last is set out in your draft Payment Programme issued by Us in accordance with clause 2.1 below.

"Terms of Business" means these terms of business.

"Think Banking Account" means a bank account opened by Us with The Royal Bank of Scotland plc for You.

"Us" and "We" means Gregory Pennington Limited, whose registered address is Pennington House, Carolina Way, South Langworthy Road, Salford Quays, M50 2ZY Company Registration No 02855061 or anyone to whom we transfer our obligations and rights under this Agreement.

"You" means you, the person entering into this Agreement named in the Payment Programme.

1. Appointment and Term

1.1 You appoint Us and We agree to act on your behalf, as debt counsellors and debt adjusters and to provide the Services.

1.2 This Agreement will start when You confirm your acceptance of these Terms of Business either by telephone or by returning the completed Client Authority Form or if earlier, the day when We receive the Initial Fee from You in Cleared Funds.

1.3 This Agreement will continue for the Term, unless ended earlier by You as set out in sections 1.4 and 7 or by Us as set out in section 8.

1.4 You have a right to cancel our agreement at any time during the first 14 days of the Term. "Days" here include Saturdays, Sundays and public holidays. You can do this by writing to us at the above address or by telephone on 08456 343434 saying you wish to cancel. We will then refund to you any Fees already paid to us that are Cleared Funds.

2. What We will do

2.1 Based upon information provided by You to Us, We will review your income, outgoings and living expenses and prepare and issue to You a draft Payment Programme in respect of those types of debt which do not fall within the exclusions set out in clause 5.2 below. This will indicate a Monthly Payment which We believe You can afford. It will also include an estimate of the total Fees payable by You to Us for the Services which We provide under this Agreement and an estimate of how long it will take You to repay your Creditors.

2.2 Once the Agreement starts We will notify your Creditors of our involvement and will attempt to agree with them revised payment terms on your behalf. We will in particular attempt to persuade your Creditors, where appropriate, to accept reduced monthly repayments from You, not to charge interest and to either suspend or withdraw any recovery, or similar, proceedings, which they may already have taken against You or may have threatened to bring against You. We will endeavour to provide as much assistance to You as We can based on our expertise and experience of dealing with creditors.

2.3 Following receipt of the Initial Fee in Cleared Funds We will prepare and issue a Payment Programme, normally within 28 days. This may vary from the earlier draft depending on the accuracy of the information You originally provided to Us and our discussions with your Creditors.

2.4 If your circumstances change and You are unable to meet the payments set out in the Payment Programme, We shall attempt to re-negotiate with your Creditors and arrange with You a revised Payment Programme. We will in any event periodically review your situation, normally every twelve months or earlier if your Creditors insist, and We will prepare and issue a revised Payment Programme with You and your Creditors if this is appropriate.

2.5 We shall provide to You each month a statement listing your Creditors, the status of any negotiations with them, the Monthly Repayments made to them that month and the Fees which we have charged You.

2.6 We shall keep You informed of all material communications between your Creditors and Us, and We shall deal with all communications from your Creditors to Us (or to You and provided by You to Us) appropriately and promptly.

3. What You will pay

3.1 You will pay Us the Initial Fee, the Monthly Fee and the Monthly Repayments and any other fees agreed in writing between You and Us for additional services.

3.2 If You continue to pay the Monthly Payments promptly for the full duration of the Payment Programme, We shall during the final six months of the Payment Programme, waive our Monthly Fee up to the total value of your Initial Fee.

4. How We handle your money

4.1 All payments that We receive from You in Cleared Funds will be paid directly into our Client Account. The only payments which We will make out of our Client Account are:

(a) payment of our Fees; and

(b) payment of the Monthly Repayments to your Creditors in accordance with the Payment Programme; and.

(c) Any other payments as instructed or agreed with You (including any PPI premiums).

4.2 We will distribute the Monthly Repayments amongst your Creditors in accordance with the Payment Programme normally within five working days of receipt of the Monthly Payment from You in Cleared Funds. If there is a delay in any payment which is not beyond our control, We shall take the appropriate action to put You in the position You would have been in if the payment had been made within five working days in Cleared Funds and shall make good any additional interest which has accrued and any default charges that have been applied to the account as a result of the delay.

5. What We won't do

5.1 We cannot lend You money or offer You any credit facilities.

5.2 We will not usually provide the Services in relation to secured credit (such as hire purchase arrangements, secured loans and mortgages), rent (including rent arrears), utility bill payments (including arrears), council tax payments (including arrears) and other similar debts.

5.3 We are not solicitors and cannot give You any legal advice.

5.4 We will not arrange for anybody to attend any court hearing on your behalf unless We expressly agree with You to do so, and if so We will charge an additional fee for such service as agreed with You in advance of the court hearing.

5.5 Whilst We will attempt to agree revised payment terms with your Creditors in accordance with section 2, We cannot stop your Creditors from continuing to charge You interest and other charges, or from continuing any current, or bringing any future, recovery proceedings against You if they want to do this.

6. What You will do

6.1 You must provide Us with full, accurate and truthful details on the form We provide to You of your net income, outgoings, Creditors and dependants and You must also provide Us with details of any outstanding judgments against You or any actual or threatened court proceedings. You must, where possible, send to Us copies or originals of documents to confirm these details.

6.2 You must make the agreed Monthly Payments to Us in accordance with the Payment Programme.

6.3 You must allow Us to negotiate on your behalf with your Creditors.

6.4 You must send Us originals or copies of all correspondence You receive from Your Creditors so that We can deal with them on your behalf. Your correspondence will be scanned and stored by Us as an electronic image and the original paperwork destroyed. If originals are provided we can only return them to You if You request this prior to posting.

6.5 During the Term You must not make any payments directly to your Creditors unless You have notified Us in advance that You propose to do so and We have agreed that such payment can be made.

6.6 You must tell Us if your circumstances change so that You are or may become unable to maintain the level of Monthly Payments or if there has been an improvement in your circumstances so that You are able to increase your level of Monthly Payments. We will require two weeks notice from You to make any amendments to any direct debit arrangements You make for payment of the Monthly Payments to Us.

6.7 During the Term You must incur no further debts, whether on credit or otherwise, other than those relating to your normal living expenses.

6.8 If You ask Us to open a Think Banking Account for You, You must comply with the Account conditions.

7. How You may end this Agreement

7.1 You have the right to cancel this Agreement under section 1.4.

7.2 You may also cancel this Agreement at any time if the total Fees payable under the Payment Programme differ significantly from the Fees estimated in the draft Payment Programme issued by Us in accordance with clause 2.1 above submitted to you. In the event of cancellation under this section 7.2, We reserve the right to retain the Initial Fee.

7.3 In addition to your right to cancel under sections 7.1 and 7.2, You may also end this Agreement at any time by giving Us two weeks prior written notice which You may serve at any time whether or not You believe We may have been in breach of our obligations under this Agreement. In the event of cancellation under this section 7.3, We reserve the right to retain the Initial Fee.

8. How We may end this Agreement

8.1 We may end this Agreement at any time by giving You two weeks prior written notice if any of the following happens:

(a) You fail to make two successive Monthly Payments; or

(b) You are otherwise in serious breach of this Agreement or have persistently committed a series of minor breaches (even if any one individual breach would not necessarily be regarded as a serious breach on its own); or

(c) You become bankrupt, file a bankruptcy petition, make an arrangement or composition with your Creditors generally, or make an application to a court of competent jurisdiction for protection from your Creditors generally.

9. Effect of ending this Agreement

9.1 When this Agreement ends:

(a) our duties and obligations under this Agreement will come to an end;

(b) your liability to your Creditors will continue to the extent that any amounts You owe to your Creditors remain outstanding over and above the repayments made to them under the Payment Programme; and

(c) You may within 30 days of the end of this agreement request Us to send You copies of all paperwork received from You or your Creditors that has been retained by Us as a scanned image.

10. Personal information

10.1 We agree to keep confidential all information received from or about You. We will not pass this information to anyone else without your permission, except in line with our data protection statement contained in section 11 or to such of your Creditors as is necessary in order for Us to negotiate repayments with such Creditors, including Creditors who may process your data outside the European Economic Area (EEA).

11.8 Please note that we may record and monitor your calls to Us to help Us to improve our service.

12. Other terms

12.1 All Fees are exclusive of any applicable value added tax (VAT) or other sales tax. Please note that although the provision of our Services is currently VAT exempt (as of June 2003), this position could change in the future. If it does change We will notify You and amend your Payment Programme accordingly.

12.2 We may transfer our rights and obligations under this Agreement by giving You written notice of such transfer.

12.3 All notices sent under this Agreement, shall be valid if sent by second-class post.

12.4 This Agreement sets out the entire agreement and understanding between You and Us and supercedes all prior agreements, understandings or arrangements (whether oral or written) relating to the provision of the Services.

12.5 You acknowledge that You have entered into this Agreement in reliance only on the representations, warranties and promises specifically contained or incorporated in this Agreement and, except as expressly set out in this Agreement, We shall have no liability in respect of any other representation, warranty or promise made prior to the start of this Agreement unless it was made fraudulently.

12.6 We shall not be deemed in breach of this Agreement or otherwise liable to You if We are prevented or hindered from performing our obligations under this Agreement by reason of any event beyond our reasonable control.

12.7 This Agreement is governed by English law.

Thank you.