Information guidance and advice

Question 1

Function of Citizens Advice

Answer 1

Offers free and impartial advice to individuals on legal financial, consumer and other problems

Question 2

What is the Citizens Advice’s role/responsiblities

Answer 2

Provides advice to members of the public
Improve policies and practices that affect lives
Promote equality/challenge discrimination

Question 3

Advantages of Citizens advice

Answer 3

Free and impartial
Widely available
Extensive coverage(benefits, debt, work, housing)

Question 4

Disadvantages of Citizens Advice

Answer 4

Run by volunteers who may not be experts

Funded by donations so service may be limited

Question 5

Function of the Independent Financial Advisor(IFA)

Answer 5

Offers advice on a wide range of financial services e.g mortgages, pensions and savings

Question 6

Role and responsibilities of IFA

Answer 6

Offer professional unbiased advice to clients on how best to manage finances
Keep up to date with changes in the sector and services provided by third parties e.g banks/pension companies

Question 7

Advantages of the IFA

Answer 7

Advise on a wide range of providers

Having a personal IFA can lead to high levels of trust

Question 8

Disadvantages of IFA

Answer 8

Charge for their services

Risk of being offered the wrong advice to benefit from commission

Question 9

Function of price comparison websites

Answer 9

Provide information on the internet in the form of price comparisons

Question 10

Roles and responsibilities of price comparison websites

Answer 10

Collect and share up to date data

Provide search options for customers allowing them to compare prices from similar providers of a service easily

Question 11

Advantages of price comparison websites

Answer 11

Free, impartial and easy to use

Convenient(available 24/7)

Question 12

Disadvantages of price comparison websites

Answer 12

Do not always include all providers

May not be accurate

Question 13

Function of debt counsellors

Answer 13

IFA or organisation who advise people on how to avoid/manage debt

Question 14

Roles and responsibilities of debt counsellors

Answer 14

Offer advice on how to reduce payments or overcome debt

Can also offer help with IVA’s and bankruptcy

Question 15

Advantages of Debt counsellors

Answer 15

Advice is from a specialist

FCA and FOS regulate counsellors

Question 16

Disadvantages of debt counsellors

Answer 16

Range of advice may be limited

Charge for their services

Question 17

Function of Individual Voluntary Arrangements(IVA’s)

Answer 17

Government organisation that allows individuals to work with an insolvency partner to manage their debt

Question 18

Roles and responsibilities of IVA’s

Answer 18

Helps individuals to manage debt by providing a solution

Agreed amount is paid on a regular basis with the insolvency partner allocating this between creditors

Question 19

Advantages of IVA’s

Answer 19

Support individuals with debt problems

Offers a manageable solution

Question 20

Disadvantages of IVA’s

Answer 20

Affect ability to gain credit in the future

Charges are incurred

Question 21

Function/role of bankruptcy

Answer 21

Individual formally declares being unable to repay debt

Question 22

Advantages of bankruptcy

Answer 22

Reduce stress

Question 23

Disadvantages of bankruptcy

Answer 23

Last resort as consequences are severe(bad credit rating)