Press Release

FLA AMENDS LENDING CODE IN ADVANCE OF FOS SCHEME

9 March 2007

The Finance & Leasing Association has changed its Lending Code in advance of the new complaints handling requirements brought in by the Consumer Credit Act (2006). Under the Act, all consumers will have the right to refer unresolved disputes to the Financial Ombudsman Service (FOS).

FLA has changed its Lending Code to reflect these new rules – if a complaint made to FLA about a member has not been resolved to the customer’s satisfaction within eight weeks, the customer will have the right to take that complaint to the FOS; but this does not mean there is no place for the conciliation role offered by the FLA.

Using the FLA complaints scheme has benefits for both lenders and consumers. The process is personal, quick and easy and ultimately provides an additional route by which to get a matter resolved. By enabling FLA to investigate matters it also has the benefit of feeding into FLA’s monitoring of Code compliance which is important to both FLA members and their customers.

FLA is running a seminar for members detailing the proposed changes at the end of March. Delegates will be addressed by speakers from both FLA and FOS.

FLA’s Policy Adviser on the Code, Liz Denyer, welcomed the Ombudsman scheme:

“FLA has consistently been regarded as a solid advocate for raising standards for consumers; FLA has one of the strongest Codes in the financial sector, as acknowledged by the Financial Ombudsman Service. Consumers should feel confident that both FLA and FOS will provide the best possible service to give both protection and clarity to consumers who have complaints.

“We are looking forward to a long and constructive relationship with the Financial Ombudsman Service to resolve all complaints against FLA members quickly and easily.”