Free Payment Plan Agreement Template

PAYMENT PLAN AGREEMENT

England And Wales  ·  Forbearance On Existing Debt

This Payment Plan Agreement (the "Plan") is made on 1 April 2026 between Greenfield Supplies Ltd of 88 Commerce Way, Leicester LE1 4TG (the "Creditor") and Oliver James Nash of 6 Foxglove Lane, Leicester LE3 9QA (the "Debtor"). The Plan records the parties' agreement as to the instalment repayment of an existing undisputed debt owed by the Debtor to the Creditor. For the avoidance of doubt, the Plan is a forbearance arrangement and does not constitute a new grant of credit.

The Debtor acknowledges and confirms that as at the date of this Plan the Debtor is indebted to the Creditor in the sum of £4,800.00 in respect of the outstanding balance of invoice INV-2024-0045 for office-fit-out services supplied between August and October 2024 (the "Debt"). The original amount of the obligation was £5,200.00. The obligation arose on or about 15 October 2024.

This Plan constitutes a written acknowledgement of the Debt for the purposes of section 29 of the Limitation Act 1980 (or, in Scotland, section 6 of the Prescription and Limitation (Scotland) Act 1973), and time shall run afresh from the date of this Plan. The Debtor confirms that the Debt is not the subject of any substantive dispute.

The parties acknowledge that this Plan is a forbearance arrangement in respect of an existing liability and is not a new credit agreement within the meaning of the Consumer Credit Act 1974 or a regulated activity within article 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). In accordance with article 60C(2) of the RAO, the deferral of payment of an existing debt without advance of further credit does not constitute the provision of "credit".

The Debtor shall repay the Debt by monthly instalments of £400.00, due on the 1st day of each calendar month. The first instalment shall be due on 1 May 2026. The final instalment shall be due on or before 1 August 2027.

All payments shall be made by bank transfer to HSBC UK, sort 40-12-34, account 22334455 (Greenfield Supplies Ltd), or by such other means as the Creditor may accept. Each payment shall be applied first in discharge of any contractual costs or fees properly payable, secondly in discharge of any accrued interest (if any), and thirdly in reduction of the outstanding principal. The final payment shall include any balancing amount necessary to discharge the Debt in full. If the due date falls on a day that is not a business day in the United Kingdom, payment shall be made on the immediately preceding business day.

In consideration of the Debtor adhering to the payment schedule set out in clause 3, the Creditor agrees to suspend the accrual of interest on the outstanding balance of the Debt from the date of this Plan. The suspension shall cease automatically, and the contractual rate of interest shall resume on the outstanding balance from the date of cessation, if the Debtor breaches this Plan (including by missing any instalment beyond the cure period).

If the Debtor fails to make 2 consecutive instalment(s) by their respective due dates, or otherwise commits a material breach of this Plan that is not remedied within 14 days of written notice from the Creditor, the Creditor may, on giving written notice, declare the entire outstanding balance of the Debt immediately due and payable.

Before commencing legal proceedings, the Creditor shall comply with the Pre-Action Protocol for Debt Claims (where applicable) and, in the case of a regulated debt, with the FCA Handbook CONC 7 (treating customers in financial difficulty fairly). The Creditor shall be entitled to recover the reasonable and proportionate costs of enforcement, subject to the court's discretion.

The Debtor undertakes to: (a) notify the Creditor in writing without undue delay of any material change in the Debtor's financial circumstances that may affect the Debtor's ability to comply with this Plan; (b) engage constructively with the Creditor (including responding to reasonable requests for updated income and expenditure information); and (c) not dispose of any significant asset with the intention of defeating the Creditor's rights in respect of the Debt.

Nothing in this Plan shall be read as excluding or restricting the Debtor's rights under applicable consumer-protection legislation, including the Consumer Rights Act 2015, the Unfair Contract Terms Act 1977 and (where the underlying obligation is regulated credit) the Consumer Credit Act 1974.

Where the Creditor is authorised and regulated by the Financial Conduct Authority, the Creditor shall treat the Debtor fairly in accordance with the FCA Handbook, including CONC 7 (arrears, default and recovery), and shall have regard to the Debtor's circumstances.

The Creditor shall make reasonable adjustments to this Plan in accordance with the Equality Act 2010 where the Debtor notifies the Creditor of a disability. The Creditor shall also have regard to the Mental Capacity Act 2005 where any concern arises as to the Debtor's capacity to enter into or comply with this Plan.

The Creditor shall process the Debtor's personal data in connection with this Plan in accordance with the UK General Data Protection Regulation and the Data Protection Act 2018. The Creditor's lawful basis for processing is (as applicable) the performance of a contract to which the Debtor is party and the Creditor's legitimate interests in administering and recovering the Debt. The Debtor may exercise their statutory rights, including the right of access, rectification and objection, by written request to the Creditor.

Entire Agreement: This Plan constitutes the entire agreement between the parties in relation to the repayment of the Debt and supersedes any prior understanding on that subject.

Variation: No variation of this Plan shall be effective unless in writing and signed by both parties.

Severability: If any provision is found to be unenforceable, the remaining provisions shall continue in full force and effect.

Third-Party Rights: A person who is not a party to this Plan has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term.

Governing Law: This Plan and any dispute or claim arising out of or in connection with it (including non-contractual disputes) shall be governed by and construed in accordance with the law of England and Wales. The parties submit to the exclusive jurisdiction of the courts of England and Wales.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.