Credit Check Changes
We've made some changes to our credit checking process,
please see below.
Following the FCA's creditworthiness and affordability changes in respect of consumer credit, we will shortly be introducing new steps to ensure that we remain compliant and are providing out customers with a fair and transparent solution to credit. As a result, our Underwriters will be required to carry out credit checks on individuals who wish to pay for their premium via Direct Debit and will also be checking that affordability questions have been discussed with customers.
Credit Check
We will be required to carry out credit checks on individual customers who wish to pay for their premium via Direct Debit at a new business stage and at renewal, where the method of payment is changing to Direct Debit. Existing policies paid via Direct Debit will not be affected.
As with any credit check, this will leave a footprint on the customer's credit file. As with any application for credit, multiple credit checks within a short period of time could have an effect on their credit score.
Affordability
We will also be following up with checks on affordability questions to ensure that the customer has not been refused credit by any other financial institution and that they are confident they can afford the proposed monthly payments.
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