Remediation | Consumer Credit
A prominent, international consumer credit company engaged our services to undertake a comprehensive review of its past business practices. The initiative was driven by being placed under voluntary restrictions due to previous operational oversights.
Who is the client?
The company is a leading provider of financial services that enable consumers to manage their purchases through flexible payment options. They offer transparent, pay-later plans without hidden fees, allowing customers to spread the cost of their purchases over time. The business partners with numerous retailers across various industries, and operates in multiple countries, making its services accessible to a wide range of consumers.
The problem
The main challenge was to conduct a thorough review of past business practices within the context of the voluntary restrictions ("VREQ"). The company needed to not only assess the adequacy of these practices but also ensure the integrity and fairness of their consumer credit operations were maintained. The task involved a detailed examination of the existing buying book, identifying any areas of non-compliance or operational weakness and devising a plan to rectify them.
The backstory
The company was placed under a VREQ by the FCA, prompting the need for an external review of its business practices. In response, the business engaged Edmund based on our reputation for expertise in regulatory compliance and our ability to provide comprehensive and cost-effective solutions. This partnership was established to conduct an objective and thorough assessment of the company's past business practices, aimed at addressing and rectifying compliance issues within the framework of the FCA’s requirements.
The Edmund Group Solution
Following our thorough review, we developed a detailed remediation plan that addressed all identified issues. Key components of our solution included:
Enhancement of compliance protocols to align with best practices in the industry;
Training sessions for staff on regulatory compliance and ethical consumer engagement; and
Revisions to internal control mechanisms to prevent future non-compliance.
Our solution was designed not only to rectify past issues but also to fortify the company's practices against future challenges. This proactive approach ensured that the business could continue to provide its services with enhanced confidence in its compliance and operational integrity.
The outcome
Increased understanding and implementation of compliance requirements;
Strengthened internal controls, which improved overall operational efficiency; and
Enhanced risk management capabilities, allowing for more informed and secure decision-making.
