Retail Financial Product: Providing Debt Management Services (effective from 1 June 2014)

1. The concept of debt management

√ To explain the concept of debt management and the benefits it can provide to consumers.

√ To explain the role of a debt advisor and the letter of engagement.

2. Legal principles

√  To explain the main elements of a valid contract, how a contract is discharged and the remedies for breach of contract.

√ To understand the covenants given by borrowers as part of the terms of a loan agreement and the potential consequences arising from the breach of a covenant.

√ To understand the responsibilities and potential liability of a professional when providing advice to a consumer.

3. Consumer debt

√  To understand the most common causes of consumer debt.

√ To assess different types of creditors and credit arrangements.

√ To understand the different types of debt, including secured and unsecured loans, loans with and without recourse, taxation, utilities and other debts such as household, educ