New FLA Code to reflect CCD and OFT changes

The Code comes in the wake of the publication of the Financial Services Bill by the government, which is still to decide on the model for retail credit law under new watchdog the Financial Conduct Authority (FCA).

The Finance & Leasing Association (FLA)
has updated its Lending Code to include the latest guidance and
provide further cover to borrowers.

The Code comes in
the wake of the publication of the Financial Services Bill by
the government, which is
still to decide on the model for retail credit law under new
watchdog the Financial Conduct Authority (FCA).

Russell Hamblin-Boone, head of communications
at the FLA said: “We have developed the Code in a web-based format,
which means we can continue to adapt as the government’s plans for
consumer credit regulation take shape.”

The FLA,
which advised against an immediate imposition of the Financial
Services and Markets Act on the car finance industry by the
FCA, is aware protecting self-regulation in the motor finance
industry requires evident best practice and good customer
service.

“The independently-monitored Code is twenty
years old and is backed by a robust complaints procedure, so anyone
using credit provided by an FLA member can borrow with confidence,”
said Hamblin-Boone.

All of the FLA’s 50 members in the consumer
credit market are bound by the updated Code which is intended for
all customers who have taken out a credit loan with them.

The Code includes detail of new rights for
short-term credit and store cards as well as statutory rules from
the Consumer Credit Directive and the Office of Fair Trading
(OFT).

A collection of industry-wide predictions
for car finance regulation in 2012 will be published in
February’s issue of
Motor Finance
magazine.

richard.brown@vrlfinancialnews.com