Frp Advisory Group Regulatory News (FRP)

10 Jan 2007 07:00

Debt Free Direct Group PLC10 January 2007 10 January 2007 DEBT FREE DIRECT GROUP PLC NEW INCOME STREAM Debt Free Direct Group (DFD), the leading debt advice and solutions company,today announces an agreement to develop a new income stream from its corebusiness of providing debt advice to consumers. We previously announced our intention to investigate the potential of furtherdiversifying our income streams and enhancing profitability by utilising ourexisting (creditor funded) debt management leads. We are delighted to announce that Payplan are now our chosen business partnerfor certain cases considered to be appropriate for a debt management solution.In return, we have negotiated with them a share of the income generated fromthose cases which result in a successful debt management plan (DMP). Payplan is currently the number two provider of non-fee charging DMPs in the UK.Entering into this agreement will provide them with a platform to achieve theiraim of becoming the UK's leading provider. The benefits to Debt Free Direct from this partnership are as follows: • DFD will enjoy a significant new income stream, whilst maintaining the strong ethical position we have built from our inception. • DFD will incur no additional advertising or labour costs. We have always separately identified those cases where the most appropriate advice for the debtor was non-fee charging debt management. • DFD continue to provide the debtor with the most appropriate advice. We remain firmly of the view that creditor funded debt management always represents the best advice for the debtor (and by definition fee-charging or debtor funded DMPs can never be considered appropriate). • DFD continue to provide the creditors with the best achievable return where a DMP represents the most appropriate solution. Research suggests that creditor returns from creditor-funded DMPs are, on average, significantly higher than those achieved by debtor-funded DMPs. The partnership arrangements will commence with effect from 10 January 2007. Andrew Redmond, CEO, commented: "Following a recent review of the performance of non fee-charging debtmanagement companies, we are confident that Payplan offers the best service toconsumers and the best returns to creditors. We are delighted to be able toagree commercial terms, which will benefit not only ourselves and Payplan butwill also be to the advantage of both consumers and creditors." Enquiries: Debt Free Direct Group plcAndrew Redmond, Chief Executive Officer 0845 296 0100Paul Latham, Finance Director 0845 296 0200 Numis SecuritiesIain McDonald 020 7776 1500Lee Aston Financial DynamicsEd Gascoigne-Pees 020 7269 7132Nick Henderson 020 7269 7114 Notes Debt Free Direct helps individuals find the best solution to their debtproblems, based upon an analysis of their particular financial circumstances.Financial information on an individual is processed through a computer model(the Best Advice Model) developed by Debt Free Direct in order to recommend asolution suitable for that individual's particular financial circumstances. Thesolutions offered range from basic advice, such as simply destroying creditcards and curbing unnecessary expenditure, to the following solutions: • consolidation loan • re-mortgage • informal arrangement • individual voluntary arrangement (IVA) • bankruptcy Debt Free Direct is unique in the marketplace in that, unlike most of itscompetitors who sell specific products, Debt Free Direct looks to provide thebest advice to the consumer and recommends them the most appropriate service. Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM inDecember 2002. This information is provided by RNS The company news service from the London Stock Exchange