Benson

ASTL toughens up code of conduct




The Association of Short Term Lenders (ASTL) has voted to toughen up its code of conduct to ensure the customers of its members are not treated unfairly.

Members voted to avoid the back-dating of higher rates of interest to the inception of a loan, should a client go into default. 

The practice is known to happen within the bridging industry, but the amendment will ensure all ASTL members abide by high standards to ensure fairness for customers regardless of whether the member is regulated or unregulated.

ASTL’s new clause states: 

C10.1 For the avoidance of doubt, where the member has a provision that a higher or non-discounted rate be applied in the event of default, then such rate should only be applied from the date of the default or the date of notification to the client, if later and not back-dated to the initial date of advance of the loan.

Benson Hersch, CEO of the ASTL, said it sets very high standards and this was to provide brokers with the assurances that their clients would benefit from those standards when dealing with an ASTL member.

“This includes not issuing terms nor charging fees where the lender does not reasonably expect to provide finance; bringing to the customer’s attention all costs and fees to be charged and treating both customers and all other third parties at all times fairly and courteously.

“The new clause in our code of conduct just helps to eliminate any thought of bad practice and raise our standards still higher. 

“Any lender found not abiding by these will risk being expelled from the Association.”  

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