Responsible lending, or responsible lending, is an idea focused on ensuring that lending activity is conducted in accordance with the law (including mainly the Consumer Credit Act and the Act on competition and consumer protection) and ethical standards in force on the financial market with respect for rights and interests of customers. What does this involve?
Conditions for obtaining a certificate
First of all, the loan company must carefully assess the creditworthiness of the client and choose the amount of the liability and the repayment period to his actual capabilities to reduce the risk of excessive debt. The situation of each applicant should be analyzed individually. It is important that the borrower receives precise and comprehensive information about the offer, in particular about the costs resulting from the fact of taking out a loan. This directly involves not misleading the customer through vague advertising, even by not taking into account the information required by law, for example the amount of APRC. The loan company must also inform the borrower why a negative decision on financing was issued. The customer has 14 days to withdraw from the contract without explaining the reasons for this decision and bearing any consequences of this step.
Access to various communication channels
Another responsibility of the responsible lender is to provide the consumer with various communication channels, thanks to which he will be able to clarify any doubts related to the service both before the conclusion of the contract and after signing the document. The canon of good responsible lending also includes consideration of all complaints and claims submitted by consumers and providing feedback after their consideration. If you are carrying out debt collection activities, remember to respect consumer rights and provide the customer with clear information about the costs associated with conducting collection.
It should be emphasized that the idea of responsible lending does not only apply to non-bank companies.
The borrower must also realize that from the decision to incur an obligation, through the allocation of funds, to the repayment of receivables, he takes responsibility for individual actions and is aware of all rights and obligations associated with this step.
Implementing the idea of Responsible lending
How can a person using the services of the non-bank loan sector implement the idea of responsibe lending? First of all, it is important that the decision to obtain external financing is not made without reflection, i.e. without prior analysis of your financial situation. It is important to estimate what amount and for what period will be a safe solution and will allow us to avoid excessive debt. In case of questions or doubts regarding the offer or contract, the lender should strive to explain the ambiguities to us in a comprehensible and comprehensive manner. It is important not to sign a contract if we have any objections to its content. Responsible lending is also taking care of timely repayment of the loan, and in case of problems with its return – striving to reach an agreement with the lender and find a solution satisfying both sides.