Responsible Lender of the Year

Sponsored by Cabot Financial Group

Company applications must be made on behalf of consumer creditors – and should be demonstrated across the majority of product lines belonging to the company applying. Applications should describe the manner in which the organisation has conducted itself that fits commonly held views of responsible lending including: • Ensuring a borrower's ability to make timely loan payments as required, both short-term and long-term. Projected ability to repay is based on factors such as income, existing debt, and the length of the loan period. The lender should demonstrate that all loans (including pre-approved loans) go through a sound and proper credit assessment • The credit institution is taking more active steps to pool information in order to give a better picture of a particular consumer's overall position through measures such as a) credit scoring as a prerequisite to the extension of credit and b) data sharing with other members of the credit industry • The availability of free debt advice • The encouragement of more transparent credit literature, better information and early advice to consumers • The observance of codes of practice issued by, for example, the banking industry and the Finance & Leasing Association • The provision, in good time, before the consumer becomes bound by credit agreements • Explanations to enable individuals to assess whether the proposed credit agreement is adapted to his or her needs and financial situation. This may involve explaining the advantages and disadvantages of the products proposed

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