Responsible lending explained

Responsible lending is something that is very important in the credit industry. It is important for both lenders and borrowers - so what does it mean?

What is responsible lending?

Responsible lending is a lenders decision to put the customer first. This applies to many aspects of the lending process. It means finding out about customers, to be sure that they are being offered the right products. It means making sure that products are affordable and that the customers who use the service are able to manage their repayments. Importantly, it also means making sure that the terms and conditions as well as all other information that applies to the loan are clearly displayed and understandable. The credit and affordability checks that lenders carry out are also an aspect of responsible lending. They help the lender to assess whether the customer has the means to repay the loan whilst keeping on top of their other financial responsibilities. They also allow the lender to see the credit history of the applicant, so they can assess how likely they are to be able to manage the loan.

Why is it important?

Responsible lending is important because it means that the customer is able to make an informed decision. By having all the information upfront, customers are able to compare products until they find a loan that is right for them. All of this is intended to make sure that the customer is able to manage their loan well and will not find themselves in unnecessary financial difficulty. All lenders are regulated by the Financial Conduct Authority (FCA). One of the main aims of the FCA is to ensure that customers are treated fairly, and all lenders are obliged to meet the requirements set out by them.

Morses Club and responsible lending

At Morses Club, we take responsible lending seriously. Our APR is clearly displayed on the homepage of our website and on all our leaflets and other materials, and information on our products is readily available. Importantly, we take a personal and individual response to all of our customers. Our agents not only make sure that customers are given a great service, but that they are only borrowing what they can afford to repay.

For more information about responsible lending take a look at the FCA website.

Money Advice

If you’re experiencing financial difficulties its important you get in touch with us. We understand that at times everything can get on top of you and when this happens its best to deal with it as soon as possible.

You can also seek independent advice to try and help, the following sites are not-for-profit organisations recommended by the FCA and provide free and confidential advice.

Company	About
MoneyHelper www.moneyhelper.org.uk	Set up by the government to provide advice and guidance, along with tools and calculators, to help people with a wide range of financial solutions.
Citizens Advice www.citizensadvice.org.uk	People can speak to them in person in branch or on the phone.
Christians Against Poverty (CAP) www.capuk.org	For free debt advice in your home, check post code coverage.
AdviceUK www.adviceuk.org.uk	Member centres offer debt advice including specialist advice for minority communities and people with disabilities.
StepChange Debt Charity www.stepchange.org	The UK’s leading debt charity. They offer a free online and phone-based service to help people overcome their debt problems.
National Debtline www.nationaldebtline.org	Offers free guidance and budget planners.