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21.3 General Principles for Credit-Regulated Activities
The company has implemented robust policies and procedures on Treating Customers Fairly, in which we comply with Principle 6 and pay due regard to the interests of our customers.
In addition to this, we confirm that we avoid using any misleading or ambiguous trading names or representations of the services we offer and always aim to communicate with customers in a clear, honest and accurate manner.
21.3.1 Credit Broking
[If you do not undertake any regulated credit broking activities, delete this section].
Under section CONC 2.5 of the FCA Handbook, the regulator has provided the responsibilities that a credit broker must comply with in their course of their business: –
- where it has responsibility for doing so, explain the key features of a regulated credit agreement to enable the customer to make an informed choice as required by CONC 4.2.5 R
- take reasonable steps to satisfy itself that a product it wishes to recommend to a customer is not unsuitable for the customer’s needs and circumstances
- advise a customer to read, and allow the customer sufficient opportunity to consider, the terms and conditions of a credit agreement or consumer hire agreement before entering into it
- before referring the customer to a third party which carries on regulated activities or to a claims management service (within the meaning of section 4 of the Compensation Act 2006) or other services, obtain the customer’s consent, after having explained why the customer’s details are to be disclosed to that third party
- before effecting an introduction of a customer to a lender or owner in relation to a credit agreement or consumer hire agreement, or before entering into such an agreement on behalf of the lender or owner, disclose (where applicable) the fact that the lender or owner is linked to the firm by being a member of the same group as the firm
- bring to the attention of a customer how the firm uses the customer’s personal data it collects, in a manner appropriate to the means of communication used
- provide customers with a clear and simple method to cancel their consent for the processing of their personal data
- at the request of a customer, disclose from where the customer’s personal data was obtained
- take reasonable steps not to pass a customer’s personal data to a business which carries on a credit-related regulated activity 1for which the business has no permission
The company confirms that it has operational procedures and staff reference materials in place to ensure that the above requirements are complied with on all credit broking activities. Where a customer’s consent needs to be obtained, we keep clear and accurate records or recordings of any such consent and provide the key features of our regulated credit agreements to the customer in a written format to further ensure that they have understood the content.
21.3.2 Credit References
Where the course of our business activities warrants a financial standing check on a customer through the use of a credit reference agency (CRA), we always ensure that the customer has been made aware that any such search will be carried out prior to us doing so and where consent to carry out the search has been given, we provide the customers with the name and address of the CRA used.
The company confirms that where any such search has been conducted and the customer is not yet ready to purchase the product, we will leave no evidence of the search on the credit file and where able will use the “quotation search facility”.
21.3.3 Credit Broker Refunds
Under section 6.8 of the FCA handbook (CONC) and section 155 of the Consumer Credit Act, a customer is entitled to a refund (minus £5), of any fee charged by a broker, where a credit agreement is not entered into within 6 months of an introduction by the broker.
Where any brokerage fees are charged, the company complies with this regulation and advises all customers prior to agreeing any contract that this refund option is in place.
21.3.4 Transparency of Status
To comply with section 3.3 and 3.7 of the CONC module in the FCA Handbook, the company has detailed transparency of status objectives listed in our Financial Promotion and Customer Communication Policy which can be found in an earlier section of this manual.