If the credit contract provides for this, the lender may, for objectively justified reasons, terminate the consumer`s right to direct debit. The creditor informs the consumer of the termination and the reasons for termination on paper or any other lasting medium, as far as possible before termination, no later than after termination, unless the provision of such information is legally prohibited or contrary to public policy or public safety objectives (suspicion of money laundering) etc.). Anyone offering loans must be authorized by the Financial Conduct Authority (FCA) so that you have significant rights in the event of a problem. Before the contract is concluded, the lender must verify the creditworthiness of the consumer. Consumers are required to provide the lender with all necessary information, such as current financial commitments. B (loans) and regular income (wages, pensions, etc.). Note that the Consumer Credit Directive has changed the rules for calculating the Total Appropriations Commission (TCC) on which the RPA is based. If overruns continue for more than 3 months, the lender immediately offers the consumer another type of credit contract. Providing a simple and appropriate application process for your customers is of the utmost importance to maximise the performance of retail financing and promote the transition to the euro. For your part, make sure that all application forms are as thin and optimized as possible. These are all important considerations, but if you think retail finance fits your business model well, then chances are that the offer of this service will not only transform hot customers, but will also help sell them. To emphasize, an earlier Forrester study showed that POS funding increased the average value of the contract by 75 percent. As retailers, your first idea might be that the offer of these credit facilities will be taken into account in your margins.
However, as a wide range of research shows, the increase in customer loyalty, conversion and retention has simply eclipsed these pre-costs, so it is not surprising that POS funding in 2017 accounted for more than 1.5% of total retail sales in the UK, a 9% increase over the previous year (source In: Apex Insight).