Shropshire Firm identifies lenders giving unsuitable advise

The store card and in store credit programme identified that over 75% of customers were not asked pre-qualification questions such as age and employment status and in over 40% of cases details were not provided to the customer about fees, interest rates and consequences of non-payment. Although all customers did receive pre-contract credit information sheets, 35% received these after being asked to sign the contract and almost 60% were not given any explanation about the sheet at all.

Although failure to comply with regulation can leave credit companies facing fines or possibly legal action, with advance identification of maverick practices, businesses can protect themselves from catastrophic consequences for both themselves and their customers.

“Our research identified a number of worrying facts. However, as a result of our work, our partners were able to rectify the situations quickly without further consequences for themselves and their customers.” says Gary Edwards, Director of Tern. “We understand senior management can’t go ‘back to the floor’ every day so we see ourselves as their eyes and ears. Like a Guardian Angel, we are able to protect and guide our clients through the provision of information, insight in to the results and advising on follow up action”

Businesses relying on the actions of their customer facing staff or sometimes the staff of their partners, are leaving themselves open to inappropriate practices. In many circumstances these practices can go un-noticed and lead to many consequences.

Tern Consultancy believes that any company using a well-engineered mystery shopping or compliance audit programme is taking a large step towards reducing this risk.

The research project was undertaken across a number of retailers and covered store cards and in store credit.