Responsible Lender

Responsible Lending

Total Home Loans Direct Limited, trading as THL Direct, provides high cost short-term credit to customers who may wish to borrow between £150 and £200. All loans will be set up for a maximum of 3 months.

We understand that, as a company providing this type of service, we have specific obligations towards our customers. This includes treating our customers fairly, providing them with adequate information and to provide a safe and secure online environment for application processing.

We make it clear to customers that this type of loan should be used for short-term financial needs and is not appropriate for long-term borrowing or if the customer is in financial difficulties. Careful checks will be conducted to find out whether the loan is suitable for the customer, taking account of their circumstances.

All loan applications will be checked thoroughly and go through a sound, proper and appropriate affordability assessment. We utilise credit vetting which includes the customer’s ability to repay the loan in sustainable manner. This includes using information supplied by the customer on the application form.

We will explain to our customers in general terms what types of information are considered in making a decision, if the customer asks for this.

We will not provide a short-term loan if the customer has told us they are in financial difficulties or the credit assessment indicates that the loan would not be repaid in suitable manner.

We will provide our customers with the following information and will carry out the checks listed below. This is by no means exhaustive checklist of information.

  • Loan amount and lending criteria designed to meet customer’s needs and affordability.
  • Loans which we always promote in a way that underlines both the risks as well as the benefits.
  • Clear information on the cost of customer’s borrowing, fees and charges that apply, our terms and conditions and SECCI (Standard European Consumer Credit Information form).
  • A limit on customer’s borrowing that we believe will ensure they don't overstretch their finances and which will allow for some increase in expenditure.
  • An assessment of customer’s ability to make regular payments and repay the loan, using appropriate credit assessment techniques, before providing credit.
  • We will check customer’s previous financial activity including records of previous dealings with our company and obtain a credit check.
  • We will give our customers reasonable notice of interest rate and payment changes, if any apply.
  • We will ensure that customer’s personal information is confidential and will be treated in accordance with Data Protection legislation.
  • We will handle any queries or complaints that customers may have in accordance with our complaints procedure and ensure these are dealt with promptly and effectively.
  • We will treat customers with consideration and forbearance if they were to experience difficulties with loan repayment.