CCCS budgeting guidelines

[millercc]

sorry for the multiple posts, but found this site and it turns out to be superb :-)

as i said in a previous post, i was employed until very recently as a debt management advisor, and am well versed in the CCCS budgeting guidelines.

am I right in thinking that there is no legal requirement for creditors to accept the budgeting guidelines as a suitable income and expenditure? for example, the CCCS advised budget for food toiletries and cleaning for a couple is £282 per month.

My previous company told me (and i suspect they were lying) that these are a legally accepted budget guideline.

thanks in advance :-)

[leclerc]

Re: CCCS budgeting guidelines

They are accepted industry wide as figures that they will accept under the lending code and regulatory framework

[Latch Key Kid]

Re: CCCS budgeting guidelines

Hi

Interesting thread

Just to add that there is also the Common Financial Statement (CFS) that is used by some other debt advice agencies. I also understand that the CFS figures are used as a guide on expenditure in relation to Debt Relief Orders (DROs).

http://www.cfs.moneyadvicetrust.org/faqs.asp?page_id=37

http://www.bba.org.uk/policy/article...lf-regulation/

It can all get a little confusing at times as I think the above figures are 'slightly' different to to CCCS ones.

PS - this is probably already common knowledge on this site, but nevertheless I thought I would put it up for information purposes and possible discussion.

[enaid]

Re: CCCS budgeting guidelines

I think a proper and indeed realistic cost of living figure should be well and truly available to all and adhered to,with only marginal adjustments for certain circumstances. I heard on tv that a 10% figure was taken into account for food and for the couple this was concerning on £170 per week meant they spent £17 a week on food, I wonder where they shop?

[Latch Key Kid]

Re: CCCS budgeting guidelines

I think a proper and indeed realistic cost of living figure should be well and truly available to all and adhered to,with only marginal adjustments for certain circumstances. I heard on tv that a 10% figure was taken into account for food and for the couple this was concerning on £170 per week meant they spent £17 a week on food, I wonder where they shop?

Hi enaid

I more or less agree with you.

10%...well I suppose you have to laugh or you would cry.

It is also interesting to compare the figures.

Moot point in the making this I am afraid.

[millercc]

Re: CCCS budgeting guidelines

i so want to know where that shop is. (i'd still tell the creditors i'm shopping at £282 per month anyway!)

[Latch Key Kid]

Re: CCCS budgeting guidelines

i so want to know where that shop is. (i'd still tell the creditors i'm shopping at £282 per month anyway!)

Hi millercc

So would I

I have heard a rumour that it sells one line of food only though.......tins of beans (and probably out of date ones at that)

[Crispybacon]

Re: CCCS budgeting guidelines

Hi Millerc

This is taken directly from the BBA guidelines to creditors regarding trigger figures and the Common Financial Statement:

"The trigger figures represent pre-agreed levels for certain areas of discretionary expenditure. The trigger figures help creditors and money advisers to identify levels of monthly expenditure which, unless exceeded, will not require comment or explanation. This means that if a financial statement includes items of expenditure that are either at or below the level of the appropriate trigger figure, money advisers can expect that their payment offer should be accepted."

The key word here is 'should'.

Creditors 'should' do many things, like adhere to OFT guidelines on debt collection, like treating customers fairly, like ensuring that mis-selling and misrepresentation of financial products does not occur.......... etc.

But we all know they don't!

However if a debt advisor were to offer a creditor an offer in the correct CFS format, with expenditure within the accepted trigger figures, and this were rejected, then this would not look good on the creditor should they decide to take things to court.

Its likely that a court would accept these trigger figures and would make a determination based on those figures.

Best

Crispy

[pfloyd]

Re: CCCS budgeting guidelines

For a couple a realistic amount should be between £200-£300 per month for housekeeping, I think CFS allows up to about £330 but I can confirm that for you tomorrow if you like. I'm out with clients/at court all today.

I must add the CCCS figures are lower if you are considering a DMP/IVA.

[Latch Key Kid]

Re: CCCS budgeting guidelines

For a couple a realistic amount should be between £200-£300 per month for housekeeping, I think CFS allows up to about £330 but I can confirm that for you tomorrow if you like. I'm out with clients/at court all today.

I must add the CCCS figures are lower if you are considering a DMP/IVA.

Hi pfloyd

I understand that the April 2011 CFS housekeeping trigger figures may be much higher for a couple.

Also, the HES figures are even more interesting when compared to the CFS & CCCS ones!