The FLA Lending Code, which has been protecting borrowers for twenty years, has been relaunched today with a range of new protections for borrowers in financial difficulty, and new rights for users of store cards and short-term credit. The Code is binding on all fifty FLA members in the consumer credit markets, and is subject to independent oversight. It includes a customer complaint service.

The Code has been updated to take account of recent changes in statutory regulation, including the new Consumer Credit Directive and the latest Office of Fair Trading Guidance. It covers in detail all the key consumer credit markets and is now available in a new web-based format.

Key new elements include:

• Additional measures to help customers in financial difficulty and in particular those with mental health problems.

• A ban on commission payments for shop staff selling store cards, and a delay in discounts or other benefits for the first seven days after a store card is acquired.

• A requirement on lenders to ensure customers are aware of the total cost of a short-term loan (including fees and charges) before they apply, and that the loan is not suitable for long-term borrowing.

Read more here--: CCR Magazine - New lending code provides new rights and protections for borrowers