Information for the client
The debt adviser needs to ensure the client is provided with relevant information that will help them to decide which action they should take and what will be required of them.
This information should include:
•written information about the service being offered;
•which debts will be included in any debt solution, and which will not be;
•impartial information on the debt solutions available to the client;
•the advantages and disadvantages of each debt solution;
•the suitability of each option.
They must also be warned of the risks and problems which may occur. This information could include:
•creditors may still try to collect debts, this action could incur additional costs which increase the debt;
•the client’s credit rating may be negatively affected;
•the client must meet priority commitments;
•correspondence from creditors should not be ignored, although advisers should be mindful of debts which may be or near statute barred;
•entering into a repayment arrangement does not guarantee that current recovery or legal action will be suspended or withdrawn.
The adviser should talk through each item to ensure the client fully understands each point and provide a written copy of this information.
All information a client provides about their circumstances can affect the solutions which may be effective in their situation. This information needs to be verified and recorded to ensure accuracy and to meet the standards expected of debt advice agencies. It is also important to provide the client with information on what will happen and how the process works to ensure that all their decisions are well-informed.