The Standard Financial Statement – Consultation – Money Advice Service

[Legal Beagles]

The Money Advice Service is seeking views and comments on the Standard Financial Statement for use across the debt sector.This is a significant milestone in the work we have facilitated with the advice sector to develop a single process for measuring the income and expenditure of debt advice clients and is an important step towards […]

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[PAWS]

Re: The Standard Financial Statement – Consultation – Money Advice Service

This is a fantastic plan which allows debtors to live a reasonable, normal life especially when they have children. I think it will make a big difference for lot of people – much better than the old CCCS form.:clap2:
However…….:boom:
I simply cannot see a DCA allowing someone to save even a token amount when they are trying to squeeze every penny out of them. I would also foresee huge arguments about the amount allowed for leisure and smoking.
Another point:

Annex 2: Creditorgood practice guidance

If the customer’s payments are not sufficient to prevent a default from being applied
to the account, you should not state that the offer has been rejected/declined in any
communication(s).

Surely the Creditor /DCA must accept the payment in writing? This means that they have formally accepted a fixed reduced payment. Now a point that came up in the famous Fosterv Lloyds case was that he should not have had a default marked on his credit file when Lloyds had formally agreed a reduced payment plan.
Also, just a small point but why is there a space for ‘other income’ under utilities?:confused2:

[PAWS]

Re: The Standard Financial Statement – Consultation – Money Advice Service

Oh, and another thing…..If this agreement is between an OL and debtor would that prevent the debt being sold on. Many people find that when they finally reach a reduced payment agreement the debt is sold on and they have to start from scratch with a new and often more aggressive collector.:faint: