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Conduct of Business Policy

1. Policy Statement

The company abides by all legal and regulatory rules and requirements as applicable to our business type and activities and this policy sets out our intent, obligations and objectives for how we conduct our business and monitor our regulated activities.

This policy covers our general obligations for conduct of business as well as including the FCA’s expectations for our specific business type. It is our aim and objective to ensure that each obligation and expectation set out in this policy is at the core of all our business functions and activities and that staff and associated third parties are aware of, and understand fully, the purpose and implications that these objectives carry.

2. Purpose

The purpose of this policy is to provide clear guidance to our staff and any associated third party (e.g. suppliers, lead generators etc), on the conduct of business regulations as set out by the FCA for general and specific business activities. This policy sets out our intent and objectives for meeting the regulators expectations and for monitoring our adherence to their rules.

As the conduct of business obligations are numerous, this policy helps to provide support and acts as a reference document for employees and third parties to use when developing, monitoring or undertaking any business activity or function within the company. We are committed to providing our staff with clear rules and guidelines on all regulatory compliance expectations and understand that the conduct of business expectations is fundamental to the operation and compliance of the company and our processes.

3. Scope

The policy relates to all staff (meaning permanent, fixed term, and temporary staff, any third-party representatives or sub-contractors, agency workers, volunteers, interns and agents engaged with the company in the UK or overseas) within the organisation and has been created to ensure that staff deal with the area that this policy relates to in accordance with legal, regulatory, contractual and business expectations and requirements.

4. What Is Conduct of Business?

The conduct of business modules contained in the Consumer Credit Sourcebook (CONC) and COBS sections of the FCA Handbook provide duties, guidelines and obligations for all regulated firms on how to conduct their business in a fair, honest and clear manner, putting the interest of the consumer at the foundation of their processes whilst creating and maintaining robust and structured systems, procedures and measures for comping with the regulatory requirements.

In addition to a general set of business conduct expectations, there are also regulated activity specific business conduct requirements, applicable to firms within certain credit sectors. These are: –

  • Credit brokers
  • Lenders
  • Credit card cheque servicers
  • Hire purchase providers
  • Debt counsellors
  • Debt adjusters
  • Providers of credit information services

5. Objectives

The company are committed to ensuring that we understand, implement and abide by the FCA’s general conduct of business requirements and as such, have set out the below objectives that form the basis of our activity and function procedures throughout the organisation.

5.1 General Conduct of Business Objectives

Throughout all activities and processes, the company ensure that: –

  • Pay due regard to the interests of our customers and treat them fairly. This includes ensuring that we do not at any time or for any reason: –
    • target customers with regulated credit agreements which are unsuitable for them, by virtue of their indebtedness, poor credit history, age, health, disability or any other reason
    • subject customers to high-pressure selling, aggressive or oppressive behaviour, or unfair coercion
    • allow customers, who are unable to make payments a reasonable time and opportunity, to meet repayments
    • take steps to repossess a customer’s home, other than as a last resort
  • Not carry on a credit-related regulated activity under a name which is likely to mislead customers about the status or nature of the company or our business, or in any other way.

This includes not misleading any customer by way of: –

  • the identity or nature of our firm
  • our commercial or profit-seeking status
  • our role, including any relationship with any other person
  • the extent of our authority
  • stating or implying that we are a public body or that we are related or connected in some way to a charitable, not-for-profit or governmental or local governmental organisation or to the courts
  • the nature of the products or services that we supply
  • the cost of those products or services supplied
  • the scale of our business, including our geographical scope
  • [*delete if not applicable] As the company operates under a variety of trading names, we will take particular care to ensure that our customers are not misled as to the identity, nature or scale of our business
  • Act honestly, fairly and professionally in accordance with the best interests of our clients and customers
  • Disclose the appropriate and obligatory information to all customers as set out in the below policies and procedures: –
    • Distance Marketing Policy
    • Pre-Contract Policy
    • E-Commerce Policy
    • Post-Contract Policy
    • Responsible Lending Policy
    • Cancellation & Refund Policy
    • Financial Promotions Policy
  • Ensure that where applicable, we will always assess the creditworthiness and suitability of a customer, prior to approving any credit, hire purchase, lending or re-financing

5.2 Lenders & Hirers Conduct of Business Objectives

[*delete all if not applicable]

Throughout all activities and processes, the company ensure that: –

  • 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 (adequate explanations)
  • Monitor a customer’s repayment record and take appropriate action where there are signs of actual or possible repayment difficulties
  • Take reasonable steps to satisfy ourselves that any credit brokers with whom we work with, are authorised persons or appointed representatives (refer to our Due Diligence Audit & 3rd Party Introducer Agreement documents)
  • Always ensure that where a credit reference check is being carried out, the customer is advised prior to the check being actioned and is given the option to decline proceeding further with the application
  • Ensure that we always disclosure the full name, address and contact details of any credit reference agency being used
  • Ensure that where a credit reference check has been carried out on a customer, we will not leave any evidence of such a search on the customer credit file if they are not yet ready to proceed with the credit application
  • Never pressurise the customer into buying any product or service, offer undue incentives or discourage a customer from obtaining such products or services from a different source
  • Never unfairly encourage a customer to increase, consolidate or refinance (which expression has the same meaning as in CONC 6.7.17 R) an existing debt to the extent that repayments under an agreement would be unsustainable for the customer

5.3 Provision of Credit Card Cheques Conduct of Business Objectives

[*delete all if not applicable]

Throughout all activities and processes, the company ensure that: –

  • We only provide credit card cheques only to a customer who has asked for them
  • We provide credit card cheques only on a single occasion in respect of each request that is made
  • The number of credit card cheques provided in respect of a request will never exceed three (or, if less, the number requested)
  • Where a single request is made for the provision of credit card cheques in connection with more than one credit-token agreement, (2) and (3) apply as if a separate request had been made for each agreement
  • Where more than one request for the provision of credit card cheques is made in the same document or at the same time:
    • they may be provided in respect of only one of the requests, but
  • if the requests relate to more than one credit-token agreement, in relation to each agreement they may be provided only in respect of one of the requests made in relation to that agreement

5.4 Credit Broking Conduct of Business Objectives

[*delete all if not applicable]

Throughout all activities and processes, the company ensure that: –

  • Where we have a 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
  • We take reasonable steps to satisfy ourselves that a product we wish to recommend to a customer is suitable for their needs and circumstances
  • We 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 company by being a member of the same group as us
  • We bring to the attention of a customer how we use their personal data that we collect, in a manner appropriate to the means of communication used
  • We provide customers with a clear and simple method to cancel their consent for the processing of their personal data (refer to our Data Protection Policy & Procedure for more information)
  • At the request of a customer, disclose from where the customer’s personal data was obtained
  • We take reasonable steps not to pass a customer’s personal data to a business which carries on a credit-related regulated activity for which the business has no permission
  • Always ensure that where a credit reference check is being carried out, the customer is advised prior to the check being actioned and is given the option to decline proceeding further with the application
  • Ensure that we always disclosure the full name, address and contact details of any credit reference agency being used
  • Ensure that where a credit reference check has been carried out on a customer, we will not leave any evidence of such a search on the customer credit file if they are not yet ready to proceed with the credit application

The company will ensure that we will not: –

  • make or cause to be made unsolicited calls to numbers entered on the register kept under regulation 25 or 26 of the Privacy and Electronic Communications (EC Directive) Regulations 2003 or to a customer who has notified the firm not to call the number being used to call
    • Exceptions to the above objective are: –
      • Where we have obtained the contact details of a customer in the course of the sale or negotiations for the sale of a product or service to customer
      • Where the direct marketing is in respect of our similar products and services only
      • Where the customer has been given a simple means of refusing (free of charge, except for the cost of the transmission of the refusal) the use of the contact details for the purposes of such direct marketing, at the time that the details were initially collected and, where the customer did not initially refuse the use of the details, at the time of each subsequent communication
      • Where we have previously explained that the following calls or electronic communications would be sent or made or caused to be sent or made by us and following that explanation, the customer consented for the time being to such calls or communications
  • Send or cause to be sent an electronic communication, for the purposes of marketing, to a customer, or make or cause to be made by means of an automated calling system, a call to a customer, for the purposes of marketing
  • Send, cause to be sent or use an electronic communication or automated calling system where the customer has requested that we stop doing so
  • Visit a customer at a time known to be unreasonable or inconvenient and we will not refuse to leave the customer home when asked to do so
  • We will not refuse to end the visit, refuse to leave the customer’s home or ignore the customer’s request not to return there
  • Conduct a telephone call with a customer who has called on a premium rate number for an unreasonable period
  • Effect an introduction to a lender or an owner or to another credit broker, where we have first assessed the customers’ needs and criteria but the relevant lending or hiring firm does not meet those criteria
  • Suggest to a customer that an application for credit will be met in full when a lower amount may be offered
  • Give preference to the credit products of a particular lender where the object of doing so is for, or can reasonably be concluded as having been for, the personal gain of the company or of a person acting on our behalf, rather than in the best interests of the customer
  • Pressurise the customer into buying any product or service, offer undue incentives or discourage a customer from obtaining such products or services from a different source
  • Unfairly encourage a customer to increase, consolidate or refinance (which expression has the same meaning as in CONC 6.7.17 R) an existing debt to the extent that repayments under an agreement would be unsustainable for the customer
  • Unless the customer, after we have explained the reason for the fee, consents to such an introduction, we will not charge a fee to them for effecting an introduction (directly or indirectly) to a lender or owner that provides a type of credit or hire of a different type to that: –
  • promised to the customer
  • promoted by the firm to the customer
  • which the firm is aware the customer is seeking
  • Unfairly pass a customer’s personal data to a third party without obtaining the customer’s consent to do so after having explained the reason for disclosing the data or unfairly pass a customer’s personal data to a third party for a purpose other than that for which consent was sought and given

5.5 Debt Counselling, Debt Adjustment & Provision of Credit Information Services Conduct of Business Objectives

[*delete all if not applicable]

Throughout all activities and processes, the company ensure that: –

  • Bring to the attention of a customer how we use their personal data collected by us, in a manner appropriate to the means of communication used

The company will ensure that we will not: –

  • By any means, including during a visit to a customer, coerce or use pressure to sell our services
  • Take advantage of a customer’s lack of knowledge or understanding of the law relating to consumer credit or to insolvency or to otherwise dealing with debts in order to sell our services
  • In relation to a visit to a customer:
    • We will not make an appointment to visit or visit at a time which is unreasonable or inconvenient from the customer’s point of view, unless the consumer expressly consents
    • We will not refuse to end the visit, refuse to leave the customer’s home or ignore the customer’s request not to return there
    • We will not make a visit which is unreasonably or unnecessarily long
  • Conduct a telephone call with a customer who has called on a premium rate number for an unreasonable period

6. Responsibilities

The company will ensure that all staff are provided with the time, training and support to learn, understand and implement the Conduct of Business expectations and obligations as well as the company objectives and guidelines under these regulations.

Where any new Conduct of Business regulations are published by the FCA, we will always ensure that this policy and any associated documents are fully updated and that all staff are made aware of the changes and provided with an opportunity for feedback to ensure full understanding and compliance.