Code of Practice

The Consumer Credit Trade Association has recently introduced a strict code of practice.  This is a voluntary scheme for log book loans companies which aims to improve lending practices.  The purpose of this code of practice is to promote responsible lending throughout the industry.

At the time of writing most of the top lenders are members of the association and signed up to the code of practice.  Those lenders who are signed up will have logos and information on their own websites displaying their membership.  You can find out more about the association and its work using the link above.

The code deals primarily with what are known as “bills of sale” for lending.  These are regulated under the Consumer Credit Act.  The current code of practice covers several issues related to logbook loans lending and bills of sale.  The main topics are:

1. Compliance and monitoring
2. General and specific obligations
3. Advertising and marketing
4. Responsible lending
5. Explanations of the credit product
6. Assessment of affordability
7. The regulated Consumer Credit Agreement
8. Guarantees
9. Bills of Sale
10. Dealing with customers with financial difficulties
11. Debt collection and enforcement
12. Third party purchasers
13. Debt collection agencies
14. Data protection and confidentiality
15. Complaints procedure
16. Prevention of fraud and money laundering
17. Formal procedures

You can read the full document here: CCTA Code of Practice.

 

 

Disclaimer: A logbook loan is secured on your vehicle. Your vehicle is at risk if you do not keep up with repayments. CompareLogbookLoans.co.uk is not a lender and does not give financial advice. All loans are issued by third parties.

Tags: code of practice, consumer credit trade association