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
