Interest Rate

A regulated entity shall, in a durable medium, inform a borrower of any change in the interest rate and the notice shall inform the borrower— information concerning the new reference rate is kept available on the premises of the regulated entity or on its website.

A regulated entity shall comply with the following: an advertisement for credit with a variable interest rate shall contain the following warning statement: “Warning: The cost of your repayments may increase.”;

Where an advertisement includes an interest rate, a regulated entity shall ensure that the advertisement states whether the interest rate is fixed or variable.  Currently all our interest rates are variable for Business Lending

Where an advertisement refers to an interest rate and a term, a regulated entity shall ensure that the advertisement displays the total cost of credit to the borrower.

 

Applications for credit

A regulated entity shall publish on its website, and otherwise make available to borrowers in any office of the regulated entity dealing with lending subject to these Regulations, the following information:

(a)     that the borrower is entitled to request a meeting with the regulated entity to discuss any proposed application for credit;

(b)     the timelines which apply to the assessment of an application for credit as set out in the regulated entity’s policies and procedures;

(c)     the information that may be required from a borrower in support of a borrower’s application for credit;

(d)     that the regulated entity may require submission of a business plan in support of an application for credit;

(e)     a description of the information that may be required in a business plan, including information on the structure and content of the business plan;

(f)      information about Government support schemes available from or through the regulated entity;

(g)     a statement confirming whether a refused application for credit will result in a negative impact on the borrower’s credit rating;

(h)     a description of the regulated entity’s policies on security.

  • Provide guidance to the borrower which may assist the borrower in making a successful credit application.

 

Standard information for borrowers in financial difficulties

Where a regulated entity has or operates a website, a regulated entity shall have a dedicated webpage on its website for borrowers in, or concerned about, financial difficulties which shall contain or directly link to the information booklet

The dedicated webpage referred to shall—

(a)     contain a statement highlighting the importance of the borrower engaging with the regulated entity to address the financial difficulties, and

(b)     be prominently and directly linked on the regulated entity’s home page.

With regard to financial difficulties commentary above ‘a regulated entity shall have a dedicated webpage on its website for borrowers in, or concerned about, financial difficulties which shall contain or directly link to the information booklet’ can I ask whether this dedicated webpage on BizFin will satisfy this requirement, or will the Credit Union be required to have this?

 

General Compliance

  • A regulated entity shall ensure that it has clear points of contact for any enquiries relating to the provision of credit or any other matters arising under these Regulations relating to lending to micro and small enterprises.
  • A regulated entity shall, on an annual basis, offer a borrower the option of a meeting which shall, at a minimum, include a credit review
  • A regulated entity shall ensure that information provided to a borrower is clear and comprehensible and that information of material importance is specifically brought to the attention of the borrower.