The Lending Code

The FLA has two Codes of Practice, the Business Finance Code for asset finance and the Lending Code for consumer and motor finance. The Codes require members to deal fairly and responsibly with their customers.

The FLA Lending Code is for customers who have taken out a consumer credit loan with an FLA member, no matter how much it is worth. The Code gives customers more rights than those provided by law. 

It sets out standards of good practice in consumer lending. It is intended to provide assurance to customers that they may buy with confidence from full members of the FLA. To be a full member, companies are bound by the Code at all times.

In tandem with the Code, we operate a conciliation procedure for consumer complaints and we have an independent arbitration scheme operated by the Chartered Institute of Arbitrators. These schemes are free to consumers.

Raising Standards for Consumers

The Code is monitored by an independent group, chaired by Professor Geoffrey Woodroffe and consists of representatives of independent consumers and the finance houses. Each FLA member has a code compliance officer and internal auditing procedures that ensure they comply with the Code.

The FLA also employs a full time Compliance Manager, with responsibility for the Code and complaints schemes.