Restricted Licence Finance Companies and Agents must, where applicable, comply with the requirements related to transparency and disclosures as articulated in the Central Bank’s Consumer Protection Regulation and Standards.
29.2
Restricted Licence Finance Companies and Agents must structure their activities in a clear, transparent format using plain language.
29.3
Advertising by Restricted Licence Finance Companies and Agents, and all information provided, must in all cases, indicate to Borrowers in a clear and conspicuous manner, that products being offered are Short-Term Credit.
29.4
To ensure that Borrowers are able to make an informed assessment of the suitability of the Short-Term Credit to their needs and financial circumstances, Restricted Licence Finance Companies and Agents must provide comprehensive and transparent information on key product features including, but not limited to, the total amount and expiry date of the credit, the process for accessing and repayment of the credit, related Fees, actions in the event of default, and Borrower rights.
29.5
Restricted Licence Finance Companies and Agents must disclose the terms and conditions of their business to Borrowers and articulate these within an enforceable contract; and disclose any subsequent updates to these terms and conditions.
29.6
Restricted Licence Finance Companies and Agents must disclose to Borrowers, the total Fees payable by the Borrower for the Short-Term Credit. The total amount/value of Fees must be disclosed as a total amount/value and as a percentage of the credit value. Restricted Licence Finance Companies and Agents must also provide clear examples of how the Fees will be calculated and applied, particularly as they relate to any late payment Fees.
29.7
Restricted Licence Finance Companies and Agents must advise Borrowers of the consequences of late payment and encourage them to make prompt settlement. Any applicable late payment Fees must be explicitly outlined to Borrowers, and must be reasonable.
29.8
The Borrower must sign the credit documentation and be provided with a copy signed by both the Restricted Licence Finance Company and/or the Agent, and the Borrower.
29.9
Restricted Licence Finance Companies and Agents must clearly disclose the available provisions for hardship assistance to Borrowers who experience financial difficulties, including suitable debt management solutions and the related policy on forbearance.
29.10
Restricted Licence Finance Companies and Agents must develop adequate collection policies and procedures, setting out actions to be taken against Borrowers who fail to make timely payments. The relevant details of these policies and procedures should be clearly communicated to Borrowers. The collections policies and procedures and related controls must meet the requirements of the Central Bank’s Consumer Protection Regulation and Standards.