Bad credit loans ’still covered by Banking Code’
Article Category: Debt Consolidation Help and Advice
Customers obtaining bad credit loans are assessed for their ability to repay the borrowing under the terms of the Banking Code, according to the regulation’s operating body.
Spokesperson Adrian Lloyd advises that sub-prime loans are subject to the same protection as any other form of borrowing when obtained from institutions signed up to the code.
“The pricing for sub-prime loans might be different but the repaying still needs to be assessed,” he explains.
“Our code also says quite a lot about how to handle cases of financial difficulties under the general heading that people must be treated sympathetically.”
Mr Lloyd notes that the Banking Code places a duty of care on the loan provider to assess the customer and ensure they are likely to be able to meet their repayments.
The guidance also emphasises the need to tackle “priority debts” such as those secured against property ahead of clearing unsecured loans.
For more information about debt consolidation call our advisors on 08000 122 118 for FREE, no obligation help and advice.
Leave a Reply