Compliance Strategy for Money Advice Direct
Our Purpose...
The purpose of this compliance strategy is to ensure that as a company, we are transparent, doing things right, being accountable and that we look at problem solving from a societal perspective. We aim to work as a credit licensee with professionalism and empathy towards our clients and aim to carry out our work within the current laws and regulations.
When looking at our compliance strategy three main principles were considered
- Fundamental attitude towards compliance with the laws; and
- The regulatory environment and requirements
- Complaints Procedures
When proving debt advice services or dealing with other credit licence issues, the compliance approaches we aim to use at Money Advice Direct are outlined below:
- Informing – Money Advice Direct want individuals and organisations to understand both our and their responsibilities. We aim to provide information to clients in a variety of formats including Letters, emails, courtesy calls, help lines and one line information. We aim to inform both customers and clients about the way we, as a company, will approach debt advice and advosory work with professionalism and within the laws and regulations.
- Encouraging – Money Advice Direct will undertake a number of activities aimed at encouraging compliance. These include keeping up to date on all laws and regulations applicable to debt advice and advice activities. We aim to keep up with current legislation, obtain advice from OFT especially in high risk areas and a continued monitoring of the business to make sure we are complying with regulations.
- Assisting – Money Advice Direct aim to help and support individuals and organisations by complying with regulations and will aim to conduct ourselves in a professional manner by visiting, where necessary and offering best advice.
- Monitoring – Money Advice Direct regularly check that we are complying to laws and regulations.
Money Advice Direct Standards
- To understand what behaviour is expected by the OFT and put in place good practices to meet those requirements
- To be fit to engage in the activities for which we are licensed.
- To comply with the Consumer Credit Act 1974
- All advertising and marketing must be accurate, clear and not misleading
- To operate a no cold calling personal visits policy
- To give debtors adequate information before entering into any agreement
- To inform clients of any outcomes of negotiations with creditors, as well as any developments with creditors such as the issue of default notices of threats of legal action
- To make sure payment to creditors are made by DMCs the company refer to within five working days of cleared debtor funds
Good Business Practice
COMMUNCATION
At Money Advice Direct we understand that it is unfair to communicate in whatever form in an unclear, inaccurate or misleading manner.
Examples of good business practice that we would adhere to are as follows:
- To never use official looking documents to resemble court claims
- To not leaving out or presenting information in such a way that it creates a false or misleading impression
- Always making it clear to the debtor who we are, who are working on behalf and what the purpose of contact is
- To not using unnecessary technical or legal jargon
- To provide to the debtor information on current status of debt and providing statements when requested
- To contact debtors at reasonable times after 8am and before 10pm
- To never ignore or disregard debtor’s legitimate wishes in respect of when and where to be contacted (shift workers etc)
- To never ask or instruct debtors to make payments on premium rate telephone numbers
FALSE REPRESENTATION OF AUTHORITY AND/OR LEGAL POSITION
At Money Advice Direct we understand that when contacting debtors we must not be deceitful by misrepresenting our authority and/or legal position
Examples of good business practice that we would adhere to are as follows:
- To never falsely imply or claim authority
- To never falsely imply or state that action can be taken when it legally cannot
- To never misrepresent status or backing, such as using a logo which implies government backing, using a business name which implies public body status or falsely claiming trade body membership
- To never falsely imply or state that action has been taken when it has not
- To never falsely imply or state that failure to pay a debt is a criminal offence or that criminal proceedings will be brought
PHYSICAL / PSYCHOLOGICAL HARRASSMENT
At Money Advice Direct we understand that putting pressure on debtors or third parties is considered to be oppressive
Examples of good business practice that we would adhere to are as follows:
- To never contact debtors at unreasonable times and at unreasonable intervals
- To never pressurise debtors to sell property, to raise funds by further borrowing or to extend their borrowing
- To Inform the debtor when their case has been passed onto a different debt management company/
- To never disclose or threaten to disclose debt details to third parties unless legally entitled to do so
- To never act in a manner or way likely to publicly embarrass the debtor either deliberately or through lack of care.
DECEPTIVE AND / OR UNFAIR METHODS
At Money Advice Direct we understand that our actions should not be deceitful and / or unfair when dealing with debtors
Examples of good business practice that we would adhere to are as follows:
- To never disclose debt details to an individual when it is uncertain that they are the debtor in question
- To never refuse to deal with appointed or authorised third parties, such as Citizens Advice Bureaux or other money advisers
- To never contact the debtor direct by bypassing their appointed representatives
- To never pass on debtor details to debt management companies without the debtors informed prior consent
- To never not pass on payments received within a reasonable time, resulting in delays that adversely affect a debtors financial position
- To never fail to investigate and / or provide details as appropriate, when a debt is queried or disputed, possibly resulting in debtors being wrongly pursued
CHARGING FOR DEBT MANAGEMENT SERVICES
At Money Advice Direct we understand that our charges should not be levied unfairly
Examples of good business practice that we would adhere to are as follows:
- To always give an indication in any credit agreement of the amount of any charges payable.
- To never apply charges which are disproportionate to the main debt.
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]