How does the migration of consumer credit regulation to the Financial Conduct Authority affect funeral directors?August 11, 2014 // No Comments
SAIF Business Centre thanks Thomas McIntyre, customer resolutions manager at Golden Charter, for this summary of changes.
You may know that the Financial Conduct Authority (FCA) took over consumer credit regulation from the Office of Fair Trading on 1st April this year, with a transition period until 30th September. This summary is to make you aware of the implications to avoid a future FCA fine and to ensure that any agreements you are making are exempt from the Regulated Activities Order (2001).
The main issue affecting funeral directors seems to be agreements with families who are unable to pay in full for funerals at the time of need. Whilst funeral directors want to provide as much assistance as possible in these cases, it is important that you are ensuring there is no risk to your business whilst doing so. As such, your standing rule should be to accept no more than four payments in a 12 month period for any services (this does not include any deposit payment which is not classed as part of the ‘credit’ agreement).
It is of no importance where these payments come from, whether the next of kin or the Department of Work and Pensions, as long as you are clearly stating and committing to the four payment rule. SAIF members may read a guide to help you stay on the right side of the regulation here (you will be asked to logon first).