Code of Practice
CODE OF PRACTICE
Business Funding to Suit Your Needs
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1.1 Conduct their business lawfully; comply with all relevant legislation, regulatory guidance, judicial decisions and general rulings of regulatory authorities.
1.2 Trade honestly, responsibly, ethically and treat customers fairly.
1.3 Behave at all times with integrity and endeavour to ensure, where applicable, that credit-
1.4 Act responsibly and with care in the day-
1.5 Not misrepresent facts to a customer concerning any aspect of a credit transaction. Excel-
1.6 Respect confidential information supplied to them in the course of their business.
1.7 Ensure that credit documentation embodies, in plain and intelligible language, all the express terms and conditions of the agreement which affect the customer's rights and obligations and are fair.
1.8 Provide adequate training for their staff and any other person who performs any duties on their behalf, bringing this Code and the principles contained in it to their attention and requiring them to carry out their duties in accordance with it.
1.9 Comply with obligations and any conditions which may be imposed by the Financial Conduct Authority (the FCA) with regard to their licence under the Consumer Credit Act 1974 (the Act) and the Consumer Credit Directive 2010 General Principles of fair business and practice.
1.10 To ensure that the customer is provided with a full explanation of the terms of the agreement and highlight the key risks such as the potential consequences of missing payments.
1.11 Ensure that the customer has all relevant information to make a reasonable assessment as to whether he can afford the credit and to understand the key associated risks.
1.12 Follow, where applicable, any requests conveyed by the Consumer Credit Trade Association (CCTA) and emanating from the Bank of England, the Financial Conduct Authority (or other relevant authority), and the enforcement authorities.
1.13 Follow, where applicable, any guidance notes issued by the CCTA, which refer to this Code.
1.14 Ensure fairness in all dealings with customers including, but not limited to, their dealings with customers both before and after the making of the agreement or any related agreement and the manner in which those agreements are enforced.
1.15 To act with forbearance and consideration toward customers experiencing difficulties.
1.16 Ensure that their interest in the assigned vehicle is registered, within 24 hours of the making of the agreement, with a recognised Asset Finance Register such as HPI Ltd.
2.1 Advertising and Marketing
2.1.5 All advertising carried out by Excel-
2.1.6 In this code and in particular clause 2.1 above, "advertising" includes every form of advertising including Internet Websites. The Consumer Credit Act 1974, s 189(1) makes it clear that any form of publicity is an advertisement for the purposes of the Act. "Advertisement" includes every form of advertising, whether in a publication, by television or radio, by display of notices, signs, labels, show-
2.2.2 Where Excel-
(a) to offer both balloon and capital repayment options to the customer and to provide adequate explanations of the key features and risks of each of the agreement options in order to place the customer in a position enabling him to assess which agreement (if any) is adapted to his needs and his financial situation. Freedom shall be given to the customer to select the payment option that is best suited to his needs and financial situation;
(b) To carry out reasonable specific assessments of affordability in order to establish from the customer that sufficient funds will be available by him to repay the loan in a sustainable manner and in full at the end of the contractual term;
(c) that where credit is granted to a customer on the basis of a balloon payment option, the term of the agreement shall not exceed 12 months. In addition, any subsequent agreement entered into with such customers, as a result of their inability to pay the final balloon payment on the earlier agreement, will be repayable by periodical capital and interest repayments of an amount not greater than the amount of the periodical interest only payments in the earlier agreement.
2.3 Explanations of the credit product
2.3.1 Before the customer is bound by any credit agreement or offer, Excel-
(a) Where applicable, the Pre-
(b) The risk, on default of the agreement, that additional interest and default fees may be charged;
(c) The risk of losing the asset (usually a vehicle) on which the credit is secured, how it would be repossessed, and the loss this could entail;
(d) That repossession can result in significantly higher additional costs and may not clear all of the debt owed;
(e) The customer's right of withdrawal
2.3.3 Where Excel-
2.3.4 In all circumstances Excel-
2.4.2 The assessment of affordability should be based on information and evidence obtained from:
(a) The customer, having provided evidence of his ability to repay the credit; and
(b) A credit reference agency, where necessary.
2.4.5 To the extent that they use credit-
(a) By giving the guarantee or security he or she might become liable for payment of the loan amount instead of or in addition to customer;
(b) He or she should seek independent legal advice before entering into the guarantee or security.
3. Dealing With Customers Experiencing Financial Difficulties
(a) encourage customers in financial difficulties to inform them of their difficulties at the earliest possible moment (and Excel-
(b) Provide in all relevant correspondence the name or title of a specially trained member of staff who may be contacted if difficulties arise; and
(c) Take into consideration, before determining whether to enforce an agreement, all information supplied by the customer or otherwise in relation to the cause of any default and the customer's future ability to repay. If the customer has disclosed multiple debt problems, Excel-
(d) Consider and wherever possible agree a reduction or variation of the amounts of payments or payment holiday to assist the customer
1) The amount of the customer's arrears shortfall is no less than the equivalent of:
a) The sum of the last two payments required to have been made, under a monthly paid agreement, before that time; or
b) The sum of the last four payments required to have been made, under a weekly paid agreement, before that time; and
2) The requirements of section 87B (Notice of Sums in Arrears) of the Act have been complied with prior to serving a Default Notice under section 87 (1) of the Act.
(a) If the outstanding debt is more than £500 and,
(b) The customer has agreed a schedule of repayment and has failed to adhere to the same.
3.2.11 Where Excel-
3.2.12 Where applicable, Excel-
a) a default notice has been served under s87 of the Act, the default notice remains unsatisfied and instructions have already been issued to an authorised person to recover the goods; or
b) It is established that the goods have sustained malicious damage of whatever nature.
(a) Where they are legally compelled to do so;
(b) Where there is a duty to the public to disclose;
(c) Where Excel-
(d) Where disclosure is made at the request, or with the consent, of the customer.
7.2 Customer Complaints -
7.2.1 If a customer makes a complaint in relation to an account or an agreement with Excel-
7.2.2 Where a complaint cannot be resolved to the Customer's satisfaction, the customer shall be entitled to seek resolution by the Financial Ombudsman Service.
7.2.3 Nothing in this Code restricts or is intended to restrict the rights of a customer or Excel-
Tel:0161 724 2424 / NI: 028 9446 5720 Email: enquiries@excel-
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