Responsible Lending

This Agreement was last modified on 10th August 2017

At HomeSmile we believe in responsible lending to all customers. We will:

  • Assess the creditworthiness of the customers to ensure that they have the ability to sustain payments over the term of the Hire Purchase Agreement. This will mean us consulting with a credit reference agency to assess their credit history, and for existing customers this mean will reviewing their payment history with HomeSmile.
  • Assess the affordability of the customer by completing a robust income and expenditure assessment to ensure that the customer has an adequate disposable income to make the loan repayments.
  • Ensure that we only ever use 30% of the customer’s disposable income as a weekly credit limit.
  • Ensure that all loans are underwritten by member of our experienced senior management team.
  • Keep existing agreements on the original terms when the customers take out further agreements. We do not modify agreements.
  • Ensure that we make available multiple payment methods including cash payment from your home, continuous payment authority (CPA), standing order, and direct debit card payments.
  • Ensure that we never charge late payment fees, or administration charges to the customer.

At HomeSmile we believe in supporting our customers. We will:

  • Ensure that our product pricing is competitive against other companies in our sector.
  • Treat all customers who get into financial difficulty fairly and compassionately, and work with them to provide solutions to their circumstances.
  • Exercise forbearance for customers experiencing financial difficulties.
  • Provide a published complaints process that is accessible through our website.
  • Ensure that the customer is aware of their right to complain to the Financial Ombudsman Service (FOS) if they have a complaint that has not been resolved to their satisfaction.

At HomeSmile we believe in being open, honest and transparent with all customers. We will:

  • Ensure that our prices are fully transparent, providing clear information on the full cost of ownership.
  • Where available, provide an optional Retracare plan to cover products longer than the manufactures warranty.
  • Provide customers with an Annual Statement for each credit agreement, detailing all of the payments made and outstanding balances.
  • Provide all customers with a Payment Card that will be marked on a weekly basis by their local collections agent. Or, if the customer is a debit card payer the card will be marked monthly by the collections agent.
  • Ensure that the customer receives a comprehensive adequate explanation process at the pre-contractual stage of the Hire Purchase application.
  • Ensure that the customers are informed of the consequences of missing or making reduced payments.
  • Ensure that the customer can settle in full or partially their Hire Purchase Agreement at any time during the loan term.
  • Ensure that the customer is aware that they have the right to withdraw from Hire Purchase Contract within 14 days of execution.

At HomeSmile we keep you in control of how you pay

  • Our agent can collect the payment from your door on a weekly basis.
  • You can pay your product via CPA (Continual Payment Authority) on a day time and time that best suits you.
  • You can call our head office and make a direct debit card payment on a weekly basis.
  • Note: In all circumstances an agent of HomeSmile will ensure they visit your property fortnightly to update your payment, so you always know where you stand.