Credit agreements - non-status lending

Guidelines have been produced for lending to non-status borrowers. These are borrowers with impaired or low credit ratings who often find it difficult to obtain finance on normal terms and conditions.

The guidelines highlight improper practices. The most important general principles for lenders and brokers are:

• all your dealings should be transparent and fully explain all contract terms and conditions, fees and charges 
• there should be no high-pressure selling 
• advertising and promotional material must give a true picture 
• brokers must explain their full position at the outset 
• lenders must take all reasonable steps to make sure that brokers and intermediaries serve the best interests of borrowers 
• contract terms and conditions should be fair and written in plain English 
• lending should be responsible and take full account of the borrower's circumstances 
• you should let the borrower know about any ancillary charges before they sign the agreement.

For full details, download Non-status lending: guidelines for lenders and brokers (pdf file 45 kb). 

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