TRAINING FOR PAYDAY LOAN COMPANIES
In response to demand, CAMIAD has developed a new course dedicated specifically for consumer credit and payday loan companies.
Whilst retaining all the core elements of the general one-day course, it specifically addresses the regulatory demands placed on this sector of the market by the Financial Conduct Authority.
Since the FCA took over responsibility for regulating consumer credit in April 2014, companies are required to demonstrate:
- They have procedures and policies in place to deal with
vulnerable and at-riskclients
- They are aware of the mental capacity of clients who are contemplating taking out loans.
- That affordability checks are carried out with clients before loans are given and the repayment arrangements are explained clearly.
- That clients are properly advised about debt collection and, where necessary, directed to free debt advice firms and/or given repayment options.
- That borrowers are limited to a maximum of two roll-over loans.
- That all company advertising is clear, accurate and unambiguous.
Importantly, too, the tough FCA regulations demand that staff working for payday loan companies are trained the deal with struggling customers.
Tracey McDermott, director of supervision and authorisation at the FCA says:
Our rules are designed to ensure loans are affordable; that customers who get in to difficulty are treated fairly and they are not pressurised into unaffordable and unsustainable repayment plans.
CAMIAD's dedicated training courses for payday loan companies specifically addresses all the key compliance issues demanded by the FCA.
As such, for companies undertaking this training, it contributes greatly to their ability to show evidence of good practice and that they are proactive
in complying with the regulations but also that being aware of mental health issues among clients can actually be good business sense. said CAMIAD Chief Trainer Nigel Crompton