The concept of responsible lending or irresponsible lending (as some might say) is elusive to a large extent, since there has been no clear direction from the government or legislative regulatory bodies. Unclear scope of this legislative piece has put consumer action groups and credit lenders face to face in a stiff battle, each interpreting laws in their own way to eke out benefits.
The OFT along with the BERR has launched a consultation to define the scope of the Consumer Credit Act 1974 (as amended by Consumer Credit Act 2019) with regards to responsible lending.
A Creditor should
Consider the relevance of the product to prospective customers.
Assess the ability of a customer to repay the loan amount over the entire repayment duration.
Proactively provide a borrower with a sufficiently clear, and detailed explanation to enable the borrower to assess whether a proposed credit agreement is suited to his needs and financial circumstances.
This is not an exhaustive list of creditor’s obligations, but gives a generic idea of the Consumer Credit Act regime. At Lending Stream Limited, we make sure our lending practices meet the strictest criteria laid down by any regulatory body. We comply with these regulations not just to avoid regulatory wrath but also to ethically conduct our business for the benefit of our customers.
– We don’t lend you more than you need. Our credit assessment makes sure you are never in a cycle of debt.
– We offer flexible 4,5,6-months easy repayment plans.
– We disclose all the key information and charges upfront to avoid any ambiguity later on.
– If you are in doubt about whether short term loan is suited to your needs, don’t hesitate to give us a call to discuss any questions you may have.
If you have a cash requirement, we can help you out with a payday loan.
Do you like this post? Tell us what you think of it. We value your comments.…