Company Code of Practice

Q/HR/Company Code of Practice 1

EXCEL-A-RATE BUSINESS SERVICES LTD
BUSINESS CODE OF PRACTICE

1 GENERAL OBLIGATIONS

Excel-A-Rate Business Services Ltd shall:
1.1 Conduct their business lawfully; comply with all relevant legislation, regulatory guidance, judicial decisions and general rulings of regulatory authorities.
1.2 Trade honestly, responsibly, ethically and treat customers fairly.
1.3 Behave at all times with integrity and endeavour to ensure, where applicable, that credit-brokers and all other persons with whom they have commercial relationships do likewise.
1.4 Act responsibly and with care in the day-to-day conduct of their business.
1.5 Not misrepresent facts to a customer concerning any aspect of a credit transaction. Excel-A-Rate Business Services Ltd shall also take all reasonable steps to ensure, where applicable, that brokers and any other intermediaries do not misrepresent facts regarding such transactions to a customer but act with transparency in all dealings.
1.6 Respect confidential information supplied to them in the course of their business.
1.7 Ensure that credit documentation embodies, in plain and intelligible language, all the express terms and conditions of the agreement which affect the customer’s rights and obligations and are fair.
1.8 Provide adequate training for their staff and any other person who performs any duties on their behalf, bringing this Code and the principles contained in it to their attention and requiring them to carry out their duties in accordance with it.
1.9 Comply with obligations and any conditions which may be imposed by the Office of Fair Trading (the OFT) with regard to their licence under the Consumer Credit Act 1974 (the Act) and the Consumer Credit Directive 2010 General Principles of fair business and practice.
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1.10 To ensure that the customer is provided with a full explanation of the terms of the agreement and highlight the key risks such as the potential consequences of missing payments.
1.11 Ensure that the customer has all relevant information to make a reasonable assessment as to whether he can afford the credit and to understand the key associated risks.
1.12 Follow, where applicable, any requests conveyed by the Consumer Credit Trade Association (CCTA) and emanating from the Bank of England, the OFT, the Financial Services Authority (the FSA) (or other relevant authority), and the enforcement authorities.
1.13 Follow, where applicable, any guidance notes issued by the CCTA, which refer to this Code. 1.14 Ensure fairness in all dealings with customers including, but not limited to, their dealings with customers both before and after the making of the agreement or any related agreement and the manner in which those agreements are enforced.
1.15 To act with forbearance and consideration toward customers experiencing difficulties.
1.16 Ensure that their interest in the assigned vehicle is registered, within 24 hours of the making of the
agreement, with a recognised Asset Finance Register such as HPI Ltd.
1.17 Excel-A-Rate Business Services Ltd shall not use Bills of Sale as a security instrument to finance the
purchase of any goods sold to the customer by Excel-A-Rate Business Services Ltd or by any third
party suppliers.

2 SPECIFIC OBLIGATIONS

2.1 Advertising and Marketing
2.1.1 Excel-A-Rate Business Services Ltd shall not use direct mail indiscriminately, shall act responsibly and prudently in their advertising and marketing and ensure that all their advertising is truthful and not misleading.
2.1.2 Excel-A-Rate Business Services Ltd shall ensure that all advertising and promotional literature is fair and reasonable, does not contain misleading information and complies with all relevant legislation, in particular the provisions of the Consumer Credit Act 1974 (the Act) and the Regulations made under it. This includes the inclusion and disclosure of the “APR‟ in the statutory form, where required by domestic and community law.
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2.1.3 Excel-A-Rate Business Services Ltd shall ensure that all advertising complies with the British Code of Advertising, Sales Promotion and Direct Marketing, the Radio Advertising Standards Code, the Television Advertising Standards Code, OFCOM and other relevant codes of practice of similar standing.
2.1.4 Excel-A-Rate Business Services Ltd shall not engage in high-pressure selling or other aggressive sales practices such as pressurising a customer to sign up to a credit agreement without affording him the opportunity to consider the Pre-contract information, ask questions about the agreement and ask for and obtain further information and explanation.
2.1.5 All advertising carried out by Excel-A-Rate Business Services Ltd shall carry and prominently display the CCTA logo or reference to being members of the Consumer Credit Trade Association (CCTA). This will help customers identify that loans provided by the individual member are transacted to a high standard. Excel-A-Rate Business Services Ltd will also prominently display this Code of Practice on their websites and will make available hard copies to send on request to interested customers.
2.1.6 In this code and in particular clause 2.1 above, “advertising” includes every form of advertising including Internet Websites. The Consumer Credit Act 1974, s 189(1) makes it clear that any form of publicity is an advertisement for the purposes of the Act. “Advertisement” includes every form of advertising, whether in a publication, by television or radio, by display of notices, signs, labels, showcards or goods, by distribution of samples, circulars, catalogues, price lists or other material, by exhibition of pictures, models or films, or in any other way, and references to the publishing of advertisements shall be construed accordingly.
2.2 Responsible Lending
2.2.1 Excel-A-Rate Business Services Ltd shall not engage in any behaviour that the OFT considers may constitute “irresponsible lending‟. Excel-A-Rate Business Services Ltd must have regard to: “Irresponsible Lending-OFT guidance for creditors‟-August 2010 and as amended from time to time.

2.2.2 Where Excel-A-Rate Business Services Ltd make available agreements comprising a balloon payment option, representing the full loan amount (also known as the principal), Excel-A-Rate Business Services Ltd agree to make that option available only where their customer is proposing to enter into the agreement which is wholly or predominantly for their business purposes (a business carried on or intended to carry on). Where that is the case, Excel-A-Rate Business Services Ltd agree:
(a) to offer both balloon and capital repayment options to the customer and to provide adequate explanations of the key features and risks of each of the agreement options in order to place the

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customer in a position enabling him to assess which agreement (if any) is adapted to his needs and his financial situation. Freedom shall be given to the customer to select the payment option that is best suited to his needs and financial situation;
(b) to carry out reasonable specific assessments of affordability in order to establish from the customer that sufficient funds will be available by him to repay the loan in a sustainable manner and in full at the end of the contractual term;
(c) that where credit is granted to a customer on the basis of a balloon payment option, the term of the agreement shall not exceed 12 months. In addition, any subsequent agreement entered into with such customers, as a result of their inability to pay the final balloon payment on the earlier agreement, will be repayable by periodical capital and interest repayments of an amount not greater than the amount of the periodical interest only payments in the earlier agreement.
2.3 Explanations of the credit product
2.3.1 Before the customer is bound by any credit agreement or offer, Excel-A-Rate Business Services Ltd shall provide the customer with Pre-contractual information (PCI) by means of the form required by law at that time. Excel-A-Rate Business Services Ltd shall explain to the customer that they may take away the PCI to consider the terms of the offer of credit before the making of the agreement and the customer should be afforded such an opportunity.
2.3.2 Excel-A-Rate Business Services Ltd shall provide adequate explanations to the customer, in order to place the customer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and to his financial situation by explaining, but not limited to:

(a) the Pre-contractual information to be provided;
(b) the risk, on default of the agreement, that additional interest and default fees may be charged;
(c) the risk of losing the asset (usually a vehicle) on which the credit is secured, how it would be repossessed, and the loss this could entail;
(d) that repossession can result in significantly higher additional costs and may not clear all of the debt owed;
(e) the customer’s right of withdrawal
2.3.3 Where Excel-A-Rate Business Services Ltd has clear grounds to suspect that the explanation provided has not placed the customer in a position whereby he is enabled to assess whether the
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agreement is suited to his needs and his financial situation, Excel-A-Rate Business Services Ltd shall
provide further explanation to the customer.
2.3.4 In all circumstances Excel-A-Rate Business Services Ltd should provide the customer with an
opportunity to ask questions about the credit agreement. Excel-A-Rate Business Services Ltd should
also advise the customer how to ask for further information and explanation about the credit
agreement from him.
2.4 Assessment of affordability
2.4.1 Excel-A-Rate Business Services Ltd shall, before granting credit or increasing the amount of credit to
be provided to the customer, undertake an assessment of the creditworthiness of the customer to
assess the borrower's ability to undertake any proposed credit commitment, or specific additional
credit commitment, in a sustainable manner, without the customer incurring (further) financial
difficulties and/or experiencing adverse consequences.
2.4.2 The assessment of affordability should be based on information and evidence obtained from:
(a) the customer, having provided evidence of his ability to repay the credit; and
(b) a credit reference agency, where necessary.
2.4.3 Excel-A-Rate Business Services Ltd shall take particular care in relation to applications for credit from
young people in the age range 18-21 years.
2.4.4 Excel-A-Rate Business Services Ltd shall continuously monitor their credit granting practices and their
assessment techniques to ensure that they are prudent and realistic in the prevailing economic
circumstances. They shall not be less rigorous in assessing the customer’s ability to repay by reason
of the sole fact that security is offered.
2.4.5 To the extent that they use credit-scoring techniques, Excel-A-Rate Business Services Ltd shall abide
by the principles set out in the publication “Guide to Credit Scoring 2000”, as subsequently amended
or updated. Where Excel-A-Rate Business Services Ltd do not use credit-scoring techniques they
should be prepared to make clear to a declined applicant whether or not a refusal relates to a credit
reference agency report.
2.4.6 Excel-A-Rate Business Services Ltd shall ensure that where a customer is refused credit and believes
the refusal to be unreasonable the customer is given the name or title of a senior official who will
review the application.
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2.4.7 Excel-A-Rate Business Services Ltd shall provide appropriate assistance, in the form of information
and guidance, to young (as defined in 2.4.3) and/or vulnerable customers.
2.5 The Regulated Consumer Credit Agreement
2.5.1 Excel-A-Rate Business Services Ltd shall use plain and intelligible language in all agreements, Precontract
information documents and communications with customers. Excel-A-Rate Business Services
Ltd shall use prescribed wording where that is required by law.
2.5.2 Excel-A-Rate Business Services Ltd shall ensure that their agreements (and any related agreements)
with consumers do not contain unfair contract terms.
2.5.3 Excel-A-Rate Business Services Ltd shall advise customers of the contractual interest rate(s)
applicable to their agreements for credit, the basis on which default interest and charges,
repossession charges and any other charges are calculated and, when they will be charged.
2.5.4 Excel-A-Rate Business Services Ltd shall advise customers how any agreed variation of the terms and
conditions of their agreement will be notified and shall give customers at least 14 clear days written
notice before any variation takes effect.
2.5.5 Excel-A-Rate Business Services Ltd shall comply with all statutory and other reasonable requests by
customers for information about their agreements and accounts within 14 days of receiving a written
request or otherwise within the period specified by law.
2.5.6 Excel-A-Rate Business Services Ltd shall supply copies of documentation and statements of account
as required by law and within the prescribed timescale.
2.5.7 Excel-A-Rate Business Services Ltd, where applicable, shall comply with their legal obligations in
relation to the provision of Pre-contractual information and the 14 day right of cancellation in respect
of distance contracts under the Financial Services (Distance Marketing) Regulations 2004.
2.5.8 Excel-A-Rate Business Services Ltd shall assist customers seeking advice and guidance.

2.6 GUARANTEES

2.6.1 Guarantees
2.6.1.1 Excel-A-Rate Business Services Ltd shall advise individuals proposing to give a guarantee or other
security for a customer’s liability that:
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(a) by giving the guarantee or security he or she might become liable for payment of the loan
amount instead of or in addition to customer;
(b) he or she should seek independent legal advice before entering into the guarantee or
security.
2.6.1.2 Excel-A-Rate Business Services Ltd complies with the requirements of the Act where guarantees and
other securities contain a clear and prominent notice to the above effect.

3.7 DEALING WITH CUSTOMERS EXPERIENCING FINANCIAL DIFFICULTIES

3.7.1 Excel-A-Rate Business Services Ltd shall establish and implement policies and procedures for dealing
with customers whose accounts fall into arrears that are fair, clear, not misleading and Excel-A-Rate
Business Services Ltd agree to fully comply with both the word and spirit of the section entitled
“Handling of default and arrears‟ of the OFT Irresponsible Lending Guidance.
3.7.2 Excel-A-Rate Business Services Ltd’s policies and procedures for dealing with customers whose
account falls in arrears makes specific provision for, amongst other matters, the fair and appropriate
treatment of vulnerable customers such as those known to or reasonably believed to lack the mental
capacity to make relevant financial decisions at a particular time.
3.7.3 Excel-A-Rate Business Services Ltd shall consider cases of financial difficulty sympathetically and
positively, treat customers in default or arrears difficulties with understanding, forbearance and due
consideration and encourage their customers to contact them should they experience financial
difficulty.
3.7.4 Excel-A-Rate Business Services Ltd shall, where appropriate, refer customers to debt counselling
organisations and notify customers where they can get free advice, such as Citizens Advice Bureaux,
Money Advice Centres, National Debtline, the Consumer Credit Counselling Service or Consumer
Direct. Excel-A-Rate Business Services Ltd will work with debt counselling organisations to assist
their customers.
3.7.5 Excel-A-Rate Business Services Ltd shall suspend, for a period of not less than 30 days, the active
pursuit of recovery of a debt from a customer in default or payment difficulties under circumstances
in which a bona fide debt advisor is assisting the customer in a agreeing a repayment plan.
3.7.6 Excel-A-Rate Business Services Ltd deal with most actions to recover outstanding accounts in-house
but if we pass a customer’s account to another person to collect overdue payments, such as a debt
collector or solicitor, we will inform the customer. Excel-A-Rate Business Services Ltd will always
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choose debt collection firms that agree to abide by this Code or the Credit Services Association Code
and the OFT Debt Collection Guidelines.
3.8 Enforcement and Debt Collection
3.8.1 Excel-A-Rate Business Services Ltd shall have due regard to the Debt Collection Guidance issued by
the Office of Fair Trading (the OFT) and in particular shall not engage in any unfair business
practices identified in that Guidance.
3.8.2 Excel-A-Rate Business Services Ltd shall have due regard to: “Irresponsible Lending - OFT guidance
for Creditors‟ and in particular shall not engage in any irresponsible lending practices identified in
that Guidance under the heading “HANDLING OF DEFAULT AND ARREARS‟.
3.8.3 Excel-A-Rate Business Services Ltd shall ensure, by reviewing annually their debt collection
procedures and those of any third parties they employ, that they conform to high ethical standards
and allow for proper consideration of the customer’s circumstances and in particular:
(a) encourage customers in financial difficulties to inform them of their difficulties at the earliest
possible moment (and Excel-A-Rate Business Services Ltd will endeavour to respond sympathetically,
without prejudice to Excel-A-Rate Business Services Ltd’s rights);
(b) provide in all relevant correspondence the name or title of a specially trained member of staff
who may be contacted if difficulties arise; and
(c) take into consideration, before determining whether to enforce an agreement, all information
supplied by the customer or otherwise in relation to the cause of any default and the customer’s
future ability to repay. If the customer has disclosed multiple debt problems, Excel-A-Rate Business
Services Ltd shall inform the customer of the availability of advisory services.
(d) consider and wherever possible agree a reduction or variation of the amounts of payments or
payment holiday to assist the customer
3.8.4 Excel-A-Rate Business Services Ltd should suspend the pursuit of recovery of a debt from a
borrower, under circumstances in which notification has been given and/or it is reasonably believed
that the borrower lacks the mental capacity to make relevant financial decisions regarding the
management of his debt at that time, unless or until a reasonable period of time has been allowed
for relevant evidence to be provided as to the likely impact of the capacity problem on the
borrower's ability to manage his debt and deal with a debt recovery business. The appropriate
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means of collecting evidence, in appropriate circumstances, could be to use the standard Debt and
Mental Health Evidence Form (DMHEF), developed between Money Advice Liaison Group (MALG) and
the Royal College of Psychiatrists.
3.8.5 Excel-A-Rate Business Services Ltd shall not impose charges, of whatever nature, on customers who
are in arrears unless the nature of those charges are disclosed at the Pre-contract stage and are
limited to doing no more than covering the their costs.
3.8.6 Excel-A-Rate Business Services Ltd shall allow for alternative, affordable, payment amounts when the
borrower or his appointed debt advisor or representative makes a reasonable proposal.
3.8.7 Excel-A-Rate Business Services Ltd shall regard the lawful seizure of a secured asset as a serious
enforcement option, to be taken only when attempts of have failed with the customer, to mutually
agree a realistic and sustainable arrangement to clear arrears.
3.8.8 Excel-A-Rate Business Services Ltd should not, except in exceptional circumstances such as proven
identity fraud, consider seizure of the vehicle unless-
1) the amount of the customers arrears shortfall is no less than the equivalent of:
a) the sum of the last two payments required to have been made, under a monthly
paid agreement, before that time; or
b) the sum of the last four payments required to have been made, under a weekly paid
agreement, before that time; and
2) the requirements of section 87B (Notice of Sums in Arrears) of the Act have been complied
with prior to serving a Default Notice under section 87 (1) of the Act.
3.8.9 Excel-A-Rate Business Services Ltd shall, upon the lawful seizure of the vehicle, hold the vehicle in
safe keeping for a period of not less than 7 days to allow the customer to make representations to
resolve the matter. Excel-A-Rate Business Services Ltd shall take all reasonable steps to ensure that
seized vehicles are sold for the highest obtainable market price.
3.8.10 Excel-A-Rate Business Services Ltd shall not apply for a charging order on the customers home (the
property) to secure an outstanding debt, except:
(a) if the outstanding debt is more than £500 and,
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(b) the customer has agreed a schedule of repayment and has failed to adhere to the same.
3.8.11 Where Excel-A-Rate Business Services Ltd have obtained a charging order under 3.8.10 (a) and (b),
Excel-A-Rate Business Services Ltd shall not seek an order of the court for the sale of the judgments
debtors home where the amount outstanding is less than £25,000 and only then as a last resort.
3.8.12 Where applicable, Excel-A-Rate Business Services Ltd shall allow customers who are in arrears under
the agreement, the option to voluntary surrender the assigned goods as full and final settlement of
all claims against the customer except where:
a) a default notice has been served under s87 of the Act, the default notice remains unsatisfied
and instructions have already been issued to an authorised person to recover the goods; or
b) it is established that the goods have sustained malicious damage of whatever nature.
Excel-A-Rate Business Services Ltd shall provide the customer with information on the voluntary
surrender option at the Pre-contract information stage and at the time a default notice is served.
Excel-A-Rate Business Services Ltd shall not place undue pressure on the customer to adopt this
option.

4. THIRD PARTY PURCHASERS

4.1 Excel-A-Rate Business Services Ltd shall afford innocent purchasers of vehicles, that are subject to a
Bill of Sale, the same protection as afforded under the Hire-Purchase Act 1964 Part III – “Title to
Motor Vehicles on Hire-Purchase or Conditional Sale‟, but only insofar as title shall transfer to the
innocent purchaser in the event that the Member failed to register his interest in that vehicle with a
relevant Asset Finance Register Company within 24 hours of execution of the agreement.

5. DEBT COLLECTION AGENCIES

5.1 Excel-A-Rate Business Services Ltd shall ensure that any Debt Collection Agencies they employ shall
be licensed under the Consumer Credit Act 1974.
5.2 Excel-A-Rate Business Services Ltd shall monitor those Debt collection agencies compliance with the
Consumer Credit Act 1974, regulations under that Act, relevant codes of practice, debt collection
guidance issued by the Office of Fair Trading and this Code insofar as it is compatible with the
foregoing.
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6. DATA PROTECTION AND CONFIDENTIALITY OF INFORMATION

6.1 Excel-A-Rate Business Services Ltd shall respect personal information supplied to them by customers
and shall inform customers of the purposes for which this information is intended to be used and
disclosed, before it is given by the customer.
6.2 Excel-A-Rate Business Services Ltd shall observe a strict duty of confidentiality about their customers
(and former customers) personal financial affairs and shall not disclose details of customers accounts
or their names and addresses to any third party, except for the purposes of filing with credit
reference agencies and in the following cases:
(a) where they are legally compelled to do so;
(b) where there is a duty to the public to disclose;
(c) where Excel-A-Rate Business Services Ltd’s interests requires disclosure;
(d) where disclosure is made at the request, or with the consent, of the customer.
Excel-A-Rate Business Services Ltd shall not use exception (c) above to justify the disclosure for
marketing purposes of details of customers‟ accounts or their names and addresses to any third
party, including other companies within the same group.
6.3 Excel-A-Rate Business Services Ltd who use the services of credit reference agencies and/or fraud
prevention agencies shall ensure that any information they supply about customers and the conduct
of their accounts to credit reference agencies and/or fraud prevention agencies is complete and
accurate.
6.4 Excel-A-Rate Business Services Ltd shall at all times comply with the Data Protection Act 1998 when
obtaining and processing customers‟ personal data and shall explain to their customers that they
have the right of access, under that Act, to their personal records held on computer files.
6.5 Excel-A-Rate Business Services Ltd shall advise customers of their right not to receive marketing
information from the member or a third party with whom the member is connected. Excel-A-Rate
Business Services Ltd shall comply in that regard with the requirements of the Data Protection Act
1998 and the Privacy and Electronic Communications (EC Directive) Regulations 2003.

7 COMPLAINTS PROCEDURE

7.1 General
7.1.1 Excel-A-Rate Business Services Ltd shall deal promptly and at an appropriate management level with
complaints. Excel-A-Rate Business Services Ltd shall establish a complaints procedure and furnish
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information on request about their complaints procedure. Customers shall be told what further steps
are available if they believe that the complaint has not been dealt with satisfactorily. These steps
include the complaint being referred to one of Excel-A-Rate Business Services Ltd’s senior managers,
to the CCTA and the ultimate resort of the unresolved complaint being referred to the Financial
Ombudsman Service (FOS).
7.2 Customer Complaints
The following shall apply to complaints made by a customer of Excel-A-Rate Business Services Ltd in relation
to customer transactions.
7.2.1 If a customer makes a complaint in relation to an account or an agreement with Excel-A-Rate
Business Services Ltd, Excel-A-Rate Business Services Ltd shall, in the first instance, refer the
complaint to a senior member of staff, for consideration. A copy of the Company’s Complaint’s
Procedure should also be supplied to the customer.
7.2.2 Where a complaint cannot be resolved to the Customer’s satisfaction, the customer shall be entitled
to seek resolution by the Financial Ombudsman Service.
7.2.3 Nothing in this Code restricts or is intended to restrict the rights of a customer or Excel-A-Rate
Business Services Ltd to pursue remedies through the Courts or the Financial Ombudsman Service.
7.2.4 Excel-A-Rate Business Services Ltd shall notify customers of their complaints procedure, including
the customer’s right to seek resolution of the complaint under the Conciliation Scheme and the
Financial Ombudsman Service.

8 PREVENTION OF FRAUD AND MONEY LAUNDERING

8.1 Excel-A-Rate Business Services Ltd shall satisfy themselves about the identity of a person seeking to
enter into an agreement or to open an account, to assist in protecting their customers, Excel-A-Rate
Business Services Ltd of the public and themselves against fraud and money laundering.
8.2 Excel-A-Rate Business Services Ltd shall establish, maintain and implement fraud prevention and
anti-money laundering procedures and client identification procedures and train their staff in
operating such procedures.
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8.3 Excel-A-Rate Business Services Ltd shall comply with all relevant legislation and guidance relating to
the prevention of fraud, money laundering and client identification including relevant Money
Laundering Regulations and guidance issued by The Joint Money Laundering Steering Group.

9 INTERPRETATION

In this Code reference to Acts or Regulations shall be construed as such Acts or Regulations respectively, as
amended or re-enacted from time to time.