The activities in this pathway explore what the FCA's expectations are of firms in the consumer credit industry, in terms of how they deal with customers who are in arrears. Specifically, you will look at reasons why customers default on their payments, the benefits of treating customers fairly, what the FCA's requirements are for handling these customers, and the suggested conversation models that you should apply when in conversation with your customers.
This course is suitable for all audiences.
When you've completed all of the activities in this pathway, you should be able to:
- describe what the FCA expects from authorised consumer credit firms in how they manage customers who are in arrears and/or have defaulted on payments.
- explain what is meant by the term debt management.
- describe what must happen when dealing with a customer who is experiencing financial difficulties and has arrears and/or missed payments.
- explain how you would handle a conversation with a customer to build trust and uncover more detail about their financial situation.
- describe what specific information must be given to a customer who is experiencing debt problems.
- appreciate how you can support the organisations debt management process and procedures.
