Advanced Debt Session - Trainer Notes

Advanced Debt
Guidance for conversations on advanced

debt issues
Trainers Notes for

advanced debt with clients
This session pack has been produced as part of Citizens Advice
Financial Skills for Life.
Although care has been taken to ensure the accuracy, completeness and
reliability of the information provided, Citizens Advice assumes no
responsibility. The user of the information agrees that the information is
subject to change without notice. To the extent permitted by law, Citizens
Advice excludes all liability for any claim, loss, demands or damages of any
kind whatsoever (whether such claims, loss, demands or damages were
foreseeable, known or otherwise) arising out of or in connection with the
drafting, accuracy and/or its interpretation, including without limitation,
indirect or consequential loss or damage and whether arising in tort
(including negligence), contract or otherwise.
Copyright © 2015 Citizens Advice All rights reserved. Any reproduction of part or all
of the contents in any form is prohibited except with the express written
permission of Citizens Advice.
Citizens Advice is an operating name of the National Association of Citizens

Advice Bureaux, Charity registration number 279057, VAT number 726020276,
Company Limited by Guarantee, Registered number 1436945 England.
Registered office: Citizens Advice, 3rd Floor North, 200 Aldersgate Street, London,
EC1A 4HD
2
©2015 Citizens Advice Basic debt trainer notes/July17/v2
Citizens Advice financial capability

Advanced Debt
The aim of this session is to help advisers to provide a session to clients that
helps them understand ways to prevent simple debt issues escalating into more
complex ones in the future. This session is specifically aimed at those clients
who may be coming from an actual debt intervention and are being encouraged
to prevent their problem recurring in the future.
Objectives are that by the end of this session clients will be able to:
• How to identify priority and non-priority issues from mail
• Understand steps to take control of their debts and their options
• Understand the legal powers of debt collectors and bailiffs
• Be aware of how to identify and contest the legality of debt collection

practices.
General Guidance Notes on delivering a financial capability session are

available elsewhere on the Citizens Advice website.
These notes are for the trainers use only. A separate handout pack should be
used with every client in the group, which will include signposts for further
information and guidance.
Trainers are encouraged to feedback to the Financial Skills for Life

team with any feedback about training materials or resources.
If you have any comments, please contact:

financial.skills@citizensadcvice.org.uk
3

Contents
Session Specific Guidance 5
Lesson Plan 7
1. Sorting the post 8
2. Options for dealing with debt 18
3. Debt collection rules - factsheet 19
4. Debt collection exercise 22
5. Types of debt – signposts only 23
Evaluation Guidance 25
Trainers notes 27
4

Session specific guidance
Subject information
Trainers do not need to have specialist debt advice knowledge or experience but
must have a basic understanding of the different types of debt and be able to
signpost learners to sources of further advice and information. The pack
contains all the key information for the topics covered. Any additional
information that is given should be taken from an up to date and accurate
source such as:
• the debt section of www.adviceguide.org.uk
• the Money Advice Service at www.moneyadviceservice.org.uk
This session aims to help learners understand the basis they need to prevent
simple debt issues from escalating. For further information, learners should be
referred to their local Citizens Advice or other advice agency.
Materials
• Blank flip chart paper
• Marker pens
• Note paper and pens for learners
• Blu tack
• Calculators
• Prepared cut-outs for word-matching activity
Manage expectations – Make it clear to clients that the session is a brief

overview of debt, and the most essential elements of financial capability that
relate to it. As a one-off session, there will not be the time to explore any single
element in any great detail.
Signpost and empower – Ensure that clients are aware that after the session
they will have a clear idea where to go to answer outstanding queries and to get
further assistance.
5

Top tips
6

Lesson Plan
1
5 – D (g) 5
Adult Financial Capability Framework references:
4 – E (g) 2
2 This session is intended

to take around 60
minutes to deliver.
3 – D (g) 5
Although Activity Five is
3 not one that is really

meant to be done with a
client, it is meant to
2 – E (g) 2
inform an advisor on
possible likely options to
recommend to client for
4
potential future
1 – B (d) 2
sessions.
6
Red activities – Are essential to any session on this topic
Amber activities – Are highly recommended but not essential
Green activities – Are optional activities, if time allows
The size of the bubble indicates roughly how much time, relative to the session,
to spend on an activity.
7

AIC 20 –
DSTW
Activity: Sorting the post
Put learners into small groups and give each a batch of 5 sample letters,
attached as handouts, then ask them to sort them into ‘important’ and ‘not so
important’, discussing the reasons for their decisions as they do so.
This activity can also be done with single clients in a one-on-one setting.
Questions for discussion:
• How did they make their decisions about which bills/debts were most
important?
• Did the letters seem written in a certain way? What effect do you think
they were going for?
• Are there some things that might be seen as ‘priority’ to the clients that
would, strictly speaking, otherwise fit under ‘non priority’?
If used in conjunction with a priority/non-priority budgeting exercise, explain

that not paying some bills has more effect than others. The most important bills
are called priority debts. If you don’t pay a priority debt the result can be serious,
such as losing your home. Other bills are called non priority debts. They still
matter but the result of not paying them is not as serious. Get the client to look
at their letters again and sort them into ‘priority’ and ‘non priority’ according to
the definition they’ve been given.
If this was useful, why not try…
Debt – Priority and non-priority debts (quick reference)

Debt – Debt emergency cards
8

Great Power Electric
PO Box 333
Birmingham
Street
Notown
Our ref: FG/1234/98765 30 January 2015
Immediate Action Required

Final Reminder for £305.39 owed
You still have not paid your electricity bill even though we sent you a reminder
giving you details of the different ways you can pay.
If you do not pay your account, or contact us, within the next 7 days we will take
action to recover the debt. We will either fit a card prepayment meter or cut off
your electricity supply. If you don’t let us in when we call we will immediately ask
a magistrate for a warrant which lets us enter your property even if you are not
there. We can do this by law. If we do this it could mean you will also have to
pay costs of up to £31.30.
If you cannot pay phone us free on 0800 xxx xxx. It is in your own interest to
contact us to discuss a payment arrangement. Do not delay, call us now.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _
Credit account number: 344 4040 Amount due: £305.39
Signature:____________________________ Date:___________________
Code: 11-22-33 Cash/Cheque total
9

Natural Gas
PO Box 222
Manchester
Avenue
Notown
Our ref: NG/1234/05067 30 January 2015
Final Notice
Immediate Action Necessary To Pay £193.64 Owed
You still have not paid your Gas bill even though we sent you a reminder
including details of how you can pay the amount you owe.
If you do not pay your account, or contact us, within the next 10 days we will
take action to recover the debt.
We will either cut off your gas supply or fit a card prepayment meter. If you
don’t let us in when we call we will immediately ask a magistrate for a warrant
which lets us enter your property even if you are not there. We can do this by
law. If we do this it could mean you will also have to pay costs of up to £31.30.
If you cannot pay phone us on 0808 xxx xxx. It is in your own interest to contact
us to discuss a payment arrangement.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Credit account number: 05067 Amount due: £193.64
Signature:_____________________________ Date:______________________
Code: 33-22-33 Cash/Cheque total
10

Borough of Anytown
Anytown Town Hall
Gabriel Road, Anytown
Avenue,
Anytown
15 January 2015
Dear
You currently have rent arrears of:

Rent of £385.00 is owed at 1 November 2014.
If you do not clear these arrears, the Mayor and Burgesses of the Borough of
Anytown intend to take legal action and apply to Court for an order requiring
you to give up possession of your home.
If you want to discuss this letter you should contact your Neighbourhood
Housing Officer.
Signed P Chen
Head of Legal Services
On behalf of the Mayor and Burgesses of the Borough of Anytown, Anytown

Town Hall, Gabriel Road, Anytown Tel: 000 123 4567
11

Happy Housing
Main Street
Anytown
Room
Happy Housing Hostel
Anytown
25 November 2014
Dear
You currently have rent arrears of £85.00

Rent of £85.00 is owed at 20 November 2014.
If you do not clear these arrears, Happy Housing can evict you from your room
at Happy Housing Hostel. We can take legal action and apply to Court for an
order requiring you to pay this money owed.
You have been warned about paying the rent you owe.
If you want to discuss this notice you should contact your Hostel support worker.
A Bunbury
A Bunbury
Head of Legal Services at Happy Housing
12

Friendly Personal Credit
Mrs
Street
Anytown
Ref: 1122
Customer no: 4455
Dear Mrs
Re: Outstanding Balance £1241.65

Contracted Weekly Rate £40.50
NOTIFICATION OF SERIOUS ARREARS
DESPITE OUR PREVIOUS LETTER AND RECENT VISITS, your account is now
seriously in arrears.
You have failed to make the agreed payments and you therefore in breach of
your contract.
YOU MUST re-commence weekly payments to your Agent and bring your
account up to date otherwise debt recovery action may be taken against you.
If you are unable to re-commence payments you must contact your local office
immediately.
Due to your current level of arrears, further credit is unlikely to be authorised

until your account is brought up to date.
Yours sincerely,
Mr I MacIntosh
MANAGER
OFFICE: Friendly House, Town Centre, Anytown
13

Aggregated Collections, 1 Union Street, Anytown
Street
Anytown
FORMAL NOTICE OF LEGAL ACTION
Dear Ms
I regret to note that you are not making payments as agreed despite all our
efforts to help you.
THIS SITUATION CANNOT BE ALLOWED TO CONTINUE.
I now advise you of our intention to commence legal proceedings. I will remind
you that, if a judgement is entered and the debt remains unpaid, we have the
right to take any or all of the following actions:
- Warrant of Execution against your belongings by a court appointed bailiff;

- Attachment of earnings against your current and future employers;
- Bankruptcy if the debt exceeds £750;
- A charging order against your property (if you are a homeowner).
All judgements are recorded with the relevant credit reference agencies and will
make it extremely difficult for you to obtain future credit facilities.
There remains one way to prevent the course of action I have described above.
Contact me to discuss this option.
Yours Faithfully,
A. Griffiths, Regional Manager 0111 223344
P.S. DO NOT IGNORE THIS SITUATION, IT WILL NOT GO AWAY UNLESS YOU
HELP US TO HELP YOU
14

Mobile phone company
1 New Street
Anytown
Terrace
Anytown
Bill for your mobile phone
1 August – 1 September 2015
Line rental £ 15.00

Calls £ 5.00
Texts £ 2.30
Total £ 22.30
PAY NOW OR YOUR PHONE MAY BE CUT OFF.

YOU MAY THEN BE LIABLE FOR RECONNECTION CHARGES.
15

Anytown Magistrates Court
Court Buildings
Anytown
30 November 2014
Case ref:
Mr , Street, Anytown
Your fine from Case ref: is £120.00.
This fine is due in weekly instalments of £10.00.
If you miss a payment, this will be seen as a default in payment. Further action
can then be taken.
J Omari
Signed for
Court administrator
Anytown Magistrates Court
16

I need bak asap
that 20 quid I
lent u last
month. L8a. Vx
17

AIC 20 – E
Activity: Dealing with debts – the options
Give out handout DB2, entitled ‘Dealing with debt – the options’, and divide the
participants into 3 groups. Ask each to spend 10 minutes looking at the pros and
cons of one of the following options for dealing with debt in preparation for a
group discussion:
• Money advice
• Debt consolidation
• Debt management
For one-to-one sessions, the adviser can choose whether the client would
benefit from a guided conversation through the handout, or if they would rather
read and understand it in their own time for a later discussion with the adviser.
The adviser should finish the session by giving out local publicity for money
advice in the area.
Depending on your local situation, this unit may prompt some complaints about
local access to money advice services. Acknowledge any issues, and offer
constructive options where possible, such as direct referral for Citizens Advice
for money advice appointments, National Debtline website and telephone
services.
Remember – Bailiffs are now technically called Enforcement Agents: make

sure that clients understand that this means the exact same as ‘bailiff’.
Debt – Tips for dealing with Debt
18

AIC 20 – E
Factsheet
The rules around debt collection
The differences between Debt Collectors and Bailiffs
Debt collectors don't have the same powers as bailiffs. They can't enter your
home or take your possessions. They can only write, phone, or visit your home
to talk to you about paying back the debt.
A bailiff has different powers and may visit a person’s home if they don’t pay
their debts – such as a Council Tax bill, parking fine, court fine or county court
judgment.
However, bailiffs can’t enter your home:

• by force, for example by pushing past you
• if only children under 16 or vulnerable people are in the property
• between the hours of 9pm and 6am
• through anything except the door.
It’s important to know that bailiffs are allowed to force their way into a home to
collect unpaid criminal fines, Income Tax or Stamp Duty, but only as a last
resort.
How to deal with them
If you don’t let a bailiff in or agree to pay them:

• They are allowed to take things from outside your home, like your car.
• You could end up owing even more money as they can add charges and
fees to your debt.
If you do let a bailiff in but don’t pay them they may take some of your
belongings. They could sell the items to pay debts and cover their fees.
How to check a bailiff’s identity
Before you let a bailiff in to take your things or pay them, ask to see:
• Proof of their identity, like an ID card or enforcement agent certificate.
• Which company they’re from – call this to check they’re genuine, but don’t
use a number they give you, get one online or from directory enquiries.
• A detailed breakdown of the amount owed.
What bailiffs can and can’t take
If you let a bailiff into your home, they may take some of your belongings to sell.
Bailiffs can take:

• luxury items, such as a TV or games console.
They can’t take:

• Things you need – such as your clothes, cooker, or fridge.
• Work tools and equipment which together are worth less than £1,350.
• Another persons belongings, for example your partner’s computer. The
difficult part here is that you’ll have to prove that someone else’s goods
don’t belong to you.
What laws apply to Debt Collectors?
Section 40 of the Administration of Justice Act says:
1. A person commits an offence if, with the object of coercing another person
to pay money claimed from the other as a debt due under a contract he:
a. harasses the other with demands for payment which, in respect of their
frequency, or the manner or occasion of making any such demand, or
of any threat or publicity by which any demand is accompanied, are
calculated to subject him or members of his family or household to
alarm, distress or humiliation;
b. falsely represents, in relation to the money claimed, that criminal
proceedings lie for failure to pay it;
c. falsely represents himself to be authorised in some official capacity to
claim or enforce payment; or
d. utters a document falsely represented by him to have some official
character, or purporting to have some official character which he know
it has not.
2. A person may be guilty of an offence by virtue of sub-section (1) (a) above if

he concerts with others in the taking of such actions as is described in that
paragraph, notwithstanding that his own course of conduct does not by itself
amount to harassment.
Guidance for debt collection guidance
1. “It is unfair to communicate, in whatever form, with consumers in an

unclear, inaccurate or misleading manner.”
This means that debt collectors should not mislead debtors with documents
which look as though they have been issued from the court, give false
information, or mislead the debtor into thinking that they are bailiffs. This
includes the use of confusing legal terms.
2. “Those contacting debtors must not be deceitful by misrepresenting

their authority and/or the correct legal position. “
This means that debt collectors can’t give the impression that they work for a
court, or imply that action will be taken when it will not.
3. “Putting pressure on debtors or third parties is considered to be

oppressive.”
This means that debt collectors are not allowed to pressure you into selling
goods, use multiple trading names, ignore disputes, force you to make
payments that you cannot afford, or make verbal or physical threats.
4. “Dealings with debtors are not to be deceitful or unfair.”

This means that debt collectors are not allowed to send letters that are not
addressed correctly because they are unsure of the debtors details, refuse to
deal with appointed third parties or refuse to suspend action if the debt is
being disputed.
5. “Charges should not be levied unfairly.”

This means debt collectors are not allowed to add any unreasonable charges
or claim collection costs where this is not appropriate.
6. “Those visiting debtors must not act in an unclear or threatening

manner.”
This means that debt collectors should give you full details about when they
will visit, leave the property when asked and not visit at inappropriate
locations such as the workplace.
Administration of Justice Act, 1970.

Statute Law Database,
http://www.legislation.gov.uk/ukpga/1970/31/section/40
AIC 20 – E
Activity: Debt Collection Exercise
This activity uses handout DB4 and is best undertaken after going through the
factsheet ‘Debt collection rules’ in some detail. Depending on the client’s level,
they may need a fair bit of support on this quite complex activity.
Answers
1. Charges should not be levied unfairly – an unreasonable charge of £450

for a £28 bill.
2. Misleading statement – a letter states the debt has been to court and there
is a CCJ.
3. False representation – a debt collector acting as a bailiff when they are not.
4. Unnecessary use of legal language – for example Corpus delicti, which

means body of offence.
5. Charges should not be levied unfairly – further charges ad infinitum,

which means further charges without a limit.
6. Misrepresenting authority – a debt collection agent is stating they have

more powers that they do to enter the property by any means necessary
and can file for bankruptcy.
7. Oppressive pressure – such as attending a persons place of work.
8. Oppressive pressure – discussing the debt with a third party (mother).
Debt – Priority and non-priority debts (quick reference)

Credit – Buy as You View exercise
22
©2015 Citizens Advice Basic debt trainer notes/Sep16/v2

AIC 20 – E
Factsheet: Control of Goods Act
Factsheet DB5 can be simply provided to a client, but it is recommended that

the adviser goes through it with them step by step. Each tip would benefit from
basic anecdotes and conversational context that makes the tip relevant to the
clients own circumstances.
If this was of use, why not try…
Credit – Explaining Jargon – A story
23

AIC 20 – E
Signposting tool for advisers ONLY: Types of debt
Financial capability is distinct from debt advice, and advisers who are not debt
specialists should not under any circumstances offer debt advice. However,
sometimes this can be a difficult distinction to make. The following list is a non-
exhaustive set of internal signposts for clients with the following debt issues.
Each recommended activity is for a financial capability resource that is likely to

be of use to the client and it’s always easier to get a client to engage with
financial capability when it feels relevant to their immediate problems. However,
in each case a client should also be signposted to appropriate debt advice.
The most common debt advice providers, other than Citizens Advice, are:
National Debtline provides free information to people living in England, Wales

and Scotland. It also provides an information pack on dealing with debt. The line
is available Monday to Friday 9 am to 9 pm and on Saturday 9.30 am to 1pm.
The National Debtline telephone number is 0808 808 4000 and the website is
www.nationaldebtline.co.uk.
StepChange Debt Charity offers free, confidential advice and support to

anyone who is worried about debt. Available:
• Monday to Friday 8 am – 8 pm and Saturday 8 am – 4 pm, freephone
0800 138 1111 where you can speak to a Debt Counsellor.
• Online where you can get information on how to deal with your debt
problems at www.stepchange.org.
• An online Debt Remedy tool, this asks you a series of questions about
your household, income and expenditure and then provides you with a
Debt Remedy tailored to your personal circumstances.
Go to www.stepchange.org.
PayPlan offers free debt advice and solutions to clients, such as debt
management plans (DMPs). You can contact Payplan on freephone 0800 716 239
or at www.payplan.com.
Business Debtline is a dedicated advice service for small businesses. You can
get their contact details from their website at www.bdl.org.uk or phone them on
0800 197 6026.
24

Recommended Financial Capability if a client has:
Resources from the Banking Topics

Bank account debt section will help, as both Bank
Overdraft debt Accounts and Overdrafts are
covered
Car loan debt

Resources from the Credit Topics
Credit card debt
section will help. There are several
Hire purchase debt
useful APR activities which address
Personal loan debt
these points, as well as a very
Secured loan debt
detailed HP exercise.
Store card debt
It would be best to signpost this
Child maintenance arrears
client directly for further debt advice.
County court judgment (CCJ)
Any financial capability covered
Magistrates' court debts
would depend on any other needs
Parking fines
they have.
Doorstep loan debt

The Credit topic has a lot of useful
Gambling debt
topics, but the client may benefit
Loan shark debt
from topics covered in the Clients at
Logbook loan debt
risk of High-Cost Credit Toolkit
Payday loan debt
Council tax debt Resources from the Budgeting

Phone TV & Gym debts Topics section will help with these
general debts
It would be best to signpost this

client directly for further debt advice.
Tax arrears and HMRC debt
Any financial capability covered
Tax credit overpayments
would depend on any other needs
they have.
Resources from the Energy and

Utility bills debt Water topic cover both these issues.
Water arrears advice Signposting to EBD or EBDx sessions
(if available) is recommended.
25

Evaluation Guidance
Areas that underpin client financial capability
These are the Citizens Advice Financial Capability Areas that were carefully
researched and developed by The Impact Team at Citizens Advice to help local offices measure
client financial capability robustly and consistently across services. They were developed in line
with the MAS UK Financial Capability Strategy Adult Outcomes Framework. Sample questions
and scales can be found overleaf. An Impact Tool is available in Petra for recording responses
and progress.
Keeping track of money Controlled spending
◉Keep track of money going ◉Spend or save only what I can

out, money coming in and afford after covering the basics I
calculate what's left over. need to live, like food, housing
◉Check my current balance and electricity.
and keep my papers in order.
Having enough money to live Planning ahead with money
◉Have enough money to cover ◉Know when my bills and

the basics I need to live like payments are due and keep on
food, housing and electricity. top of priority bills, like for
electricity, loans and council tax.
◉Put some money aside for big or
unexpected costs.
Looking for the best deals Staying informed about money services
◉Look at different options and ◉Read the main information

buying the best deal for things about money services I get like
like food, clothes, large items or banking, benefits and loans.
services like phone, electricity ◉Stay on top of changes to these
or insurance. or get help when I don’t
◉Get different opinions on understand.
what I am buying, like from
reviews and comparison
websites.
Mindset
◉Confidence about taking action on my money matters.
Copyright © 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the
express written permission of Citizens Advice.
Please note these areas, questions and scales are owned by Citizens Advice and subject to
copyright restrictions so reproduction must include the relevant copyright statement above and no changes to its wording, response
categories or layout must be made. For further information please contact Satdeep Grewal on satdeep.grewal@citizensadvice.org.uk or

03000 231 608.
Sample questions and scales for measuring
client financial capability
These questions can be used to ascertain how good someone’s financial capability is and so,
what their level of need is. They also allow you to track progress by being used to follow-up with
how someone is getting on after you have helped them.
Score 1 to 3 Score 4 Score 5 to 7
Low financial capability Average financial capability Advanced financial capability
High need Medium need Low need
Keeping track of money
Calculate money going out, money coming in and what's left over.
◉
Check my current balance and keep my papers in order.
◉
Rate your No No to some Some Some to Good Good to Excellent Don’t know

knowledge knowledge knowledge knowledge good knowledge excellent knowledge
about the knowledge knowledge
above
1 2 3 4 5 6 7 ▢
How often Never Never to Sometimes Sometimes Often Often to Very often Don’t know

do you do sometimes to often very often
the above?
1 2 3 4 5 6 7 ▢

Staying informed about money services
◉ Read the main information about money services I get like banking, benefits and loans.
◉ Stay on top of changes to these or get help when I don’t understand.
Rate your No No to some Some Some to Good Good to Excellent Don’t know

knowledge knowledge knowledge knowledge good knowledge excellent knowledge
about the knowledge knowledge
above:
1 2 3 4 5 6 7 ▢
How often Never Never to Sometimes Sometimes Often Often to Very often Don’t know

do you do sometimes to often very often
the above?
1 2 3 4 5 6 7 ▢

Mindset
How much confidence do you have about taking action on your money matters?
No No to some Some Some to good Good Good to high High Don’t know

confidence confidence confidence confidence confidence confidence confidence
1 2 3 4 5 6 7 ▢
Copyright © 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the
express written permission of Citizens Advice.
Please note these areas, questions and scales are owned by Citizens Advice and subject to
copyright restrictions so reproduction must include the relevant copyright statement above and no changes to its wording, response
categories or layout must be made. For further information please contact Satdeep Grewal on satdeep.grewal@citizensadvice.org.uk or

03000 231 608.
Trainers notes
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Advanced Debt

Guidance for conversations on advanced

Trainers Notes for

Citizens Advice is an operating name of the National Association of Citizens

Citizens Advice financial capability

• How to identify priority and non-priority issues from mail

• Understand steps to take control of their debts and their options

• Understand the legal powers of debt collectors and bailiffs

• Be aware of how to identify and contest the legality of debt collection

General Guidance Notes on delivering a financial capability session are

Trainers are encouraged to feedback to the Financial Skills for Life

If you have any comments, please contact:

Citizens Advice financial capability

Session Specific Guidance 5

1. Sorting the post 8

2. Options for dealing with debt 18

3. Debt collection rules - factsheet 19

4. Debt collection exercise 22

5. Types of debt – signposts only 23

Citizens Advice financial capability

• the debt section of www.adviceguide.org.uk

• the Money Advice Service at www.moneyadviceservice.org.uk

Manage expectations – Make it clear to clients that the session is a brief

Citizens Advice financial capability

Citizens Advice financial capability

2 This session is intended

Although Activity Five is

3 not one that is really

Citizens Advice financial capability

Questions for discussion:

If used in conjunction with a priority/non-priority budgeting exercise, explain

If this was useful, why not try…

Debt – Priority and non-priority debts (quick reference)

Citizens Advice financial capability

Our ref: FG/1234/98765 30 January 2015

Immediate Action Required

Credit account number: 344 4040 Amount due: £305.39

Code: 11-22-33 Cash/Cheque total

Citizens Advice financial capability

Our ref: NG/1234/05067 30 January 2015

Credit account number: 05067 Amount due: £193.64

Code: 33-22-33 Cash/Cheque total

Citizens Advice financial capability

You currently have rent arrears of:

Head of Legal Services

On behalf of the Mayor and Burgesses of the Borough of Anytown, Anytown

Citizens Advice financial capability

You currently have rent arrears of £85.00

Citizens Advice financial capability

Re: Outstanding Balance £1241.65

NOTIFICATION OF SERIOUS ARREARS

Due to your current level of arrears, further credit is unlikely to be authorised

Citizens Advice financial capability

FORMAL NOTICE OF LEGAL ACTION

THIS SITUATION CANNOT BE ALLOWED TO CONTINUE.

- Warrant of Execution against your belongings by a court appointed bailiff;

A. Griffiths, Regional Manager 0111 223344

Citizens Advice financial capability

Bill for your mobile phone

1 August – 1 September 2015

Line rental £ 15.00

PAY NOW OR YOUR PHONE MAY BE CUT OFF.

Citizens Advice financial capability