How to complete the Common Financial Statement
It is important that information entered into a common financial statement from the client has been verified and evidence recorded in the client’s case file.
When completing the common financial statement the first information entered will be the client’s:
•name;
•address;
•date of birth (optional);
•national insurance number (optional);
•number of dependents;
•number of vehicles.
Information relating to the agency (such as the case reference number and common financial statement licence number) are entered.
The next stage is to record the client’s income.
This includes:
•income from employment or self-employment;
•certain benefits and tax credits;
•pension payments;
•rent or board received;
•any other source of income.
It is important to include all forms of the client’s income and the frequency with which they receive it (weekly, fortnightly, annually). The form automatically converts all income to a monthly equivalent.
If the client has any assets or equity (such as property), these need to be recorded and the box marked to show that this has been discussed with the client.
Next, the client’s expenditure must be recorded. These are listed under five categories: essential expenditure, phone, travel, housekeeping and other expenditure.
Priority bills and other essential expenditure should be listed first.
Non-priority expenditure is then recorded. This includes travel, phone and housekeeping costs.
For living and household costs, the client can work out their average spending based on information from recent shopping receipts or bank statements.
A client must then think about other things they spend money on. This include smoney for repairs, self-care and entertainment.
Once this information has been recorded, a list of priority and non-priority debts is entered. Priority debts should have been identified by this stage. Amounts owed need to be recorded as well as any repayment offers made to priority debts.
The information entered into the CFS must:
•be accurate and realistic; and
•note any fees or charges being made by the debt agency; and
•be provided to creditors as soon as the client has confirmed its accuracy; and
•be sent to the creditor only after obtaining the client’s consent; and
•be sent to the client along with any accompanying correspondence.
When completing the common financial statement, the debt adviser must:
•take reasonable steps to verify the client’s identity, income and expenditure; and
•notify the client as soon as possible if a creditor will not work with the adviser’s agency; and
•seek explanations for any unusually high or low expenditure listed on the financial statement.