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December 17, 2009updated 12 Apr 2017 4:28pm

FLA gives new directions on correct selling

The UK's Finance & Leasing Association (FLA) is about to issue additional guidance to its members on how to follow its business finance code, including guidance on providing technology equipment customers with full information on services offered by members

By Fred Crawley

The UK’s Finance & Leasing Association (FLA) is about to issue additional guidance to its members on how to follow its business finance code, including guidance on providing technology equipment customers with full information on services offered by members.   Julian Rose, head of asset finance at the FLA, commented: “The addendum talks about different types of customers, and the different levels of information about services that members should provide. It concentrates on the risk factor of clients not understanding the product offered.”   Rose confirmed that the guidance would apply to business conducted through vendors and brokers, as well as directly from lessors. He also clarified that the addendum had been issued in response to “market issues”, rather than to any specific cases.   In December, Leasing Life reported on the FLA’s release of guidance to members dealing with the structuring of contracts with vendors and brokers, which Rose said had been aimed “not just at protecting finance houses, but also at ensuring that deals with customers are fair”.   Those guidelines are understood to have recommended more and firmer warranties to be put in place in brokered deals, allowing for a better position for lessors in the case of mis-sold deals being passed through.

Fred Crawley

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