TCF & Vulnerable Customers Policy

Treating Customers Fairly (TCF) Policy

1. Introduction

UK Planet Tools Limited offers customers the ability to spread the cost of their purchases by introducing them to finance options provided by our third-party lender(s) and finance partners. When those partners are unable to offer finance, customers may be offered the opportunity to apply with alternative lenders or finance providers.

When we carry out these introductions, we are undertaking regulated credit broking activities, for which the Financial Conduct Authority (FCA) is the supervisory authority.

UK Planet Tools Limited has been appointed as an Introducer Appointed Representative (IAR) by a regulated finance provider and uses their credit broking permissions to introduce customers for finance. As an IAR of a regulated business, we must meet high standards of conduct, comply with FCA rules, and meet all requirements stipulated by our principal and finance partners.

The fair treatment of our customers is central to our business model. This policy sets out our commitment and high-level approach to meeting our customers’ needs and expectations, and our regulatory obligations.

2. What is Treating Customers Fairly (TCF)?

The FCA regulates our industry through a combination of principles-based and rules-based regulation, with the aim of achieving fair outcomes for customers. The FCA’s Principles for Businesses underpin this approach. In particular, Principle 6 requires firms to pay due regard to the interests of their customers and treat them fairly.

As guidance to help firms interpret and implement Principle 6, the FCA expects the following six core outcomes (the “TCF Outcomes”):

• Outcome 1: Customers can be confident they are dealing with firms where the fair treatment of customers is central to the corporate culture.
• Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
• Outcome 3: Customers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
• Outcome 4: Where customers receive advice, the advice is suitable and takes account of their circumstances.
• Outcome 5: Customers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
• Outcome 6: Customers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

3. Our Commitment – Consumer Duty

The FCA’s Consumer Duty further strengthens expectations on firms to achieve good outcomes for customers. Under the Consumer Duty:

• Consumer Principle (Principle 12): Firms must act to deliver good outcomes for retail customers.
• Cross-cutting rules: Firms must:
  • Act in good faith towards customers;
  • Avoid causing foreseeable harm to customers; and
  • Enable and support customers to pursue their financial objectives.
• Four outcomes: The Duty focuses on outcomes relating to:
  • Products and services,
  • Price and value,
  • Customer understanding, and
  • Customer support.

UK Planet Tools Limited is committed to the fair treatment of our customers whether we are introducing them to finance options or they are simply buying our goods or services. We consider the needs of our customers across our business, from product development and purchasing, through marketing and sales practices, to our partnerships with third parties and post-sale support.

4. Implementing TCF and Delivering Good Outcomes

We embed TCF and good customer outcomes into all aspects of UK Planet Tools Limited’s operations. The following sections outline how we do this in key areas of our business.

4.1 Marketing

When marketing our products and services, we ensure that we are clear and transparent about everything customers need to know. We will never deliberately attempt to mislead customers or omit key information about our products and services.

When designing our website and other customer-facing materials, we consider the decisions customers will need to make and ensure we present them with all relevant information in a way that helps them make informed decisions.

Where we promote finance or credit broking services, we only use marketing materials and content that meet the requirements agreed with our finance providers and comply with regulatory standards.

4.2 Sales

UK Planet Tools Limited does not and will not adopt high-pressure sales techniques or seek to mislead customers when selling our products and services.

Whether selling in-store, over the phone, by email, online or in the customer’s home, we always provide customers with clear information and, where necessary, direct them to further information such as our cancellation, returns and complaints policies.

Where we introduce customers to finance, we allow customers sufficient time to read and understand the documents presented to them throughout the application process and we do not apply pressure or rush customers through the process.

Where customers have questions about their finance application or the finance products available, we provide relevant contact information so they can speak with the lender or finance provider directly to ensure they receive accurate, product-specific information.

4.3 Post-Sale Customer Support

We want to ensure our customers enjoy our products and services and that they meet the standards that customers were led to expect. If customers need support after their purchase, we make the following key policies easily available:

• Cancellation policy
• Faulty goods policy
• Returns and refund policy
• Complaints policy

Where customers raise issues with us about their products or services, we do all we reasonably can to help resolve the issue.

In cases where the customer has taken out finance to spread the cost of their purchase, we are open and transparent with the relevant lender or finance provider about issues which may affect their relationship with the customer, to help ensure that the customer continues to be treated fairly.

4.4 Training

Our staff undergo training both at the commencement of their employment and on an ongoing basis to give them the knowledge and understanding necessary to deliver a high standard of service to customers and to meet the requirements of this policy.

4.5 Complaints Handling

Whilst we aim for all of our customers to be satisfied with our service, we recognise that there may be instances where a customer feels cause to complain. We make it easy for customers to complain, either verbally or in writing, and we take all complaints seriously.

All complaints are investigated and responded to promptly. Where a complaint is raised with a lender or finance provider and they require information from us to support their investigation, we promptly provide the necessary information that is relevant to the complaint.

4.6 Remuneration

UK Planet Tools Limited acknowledges that cash and non-cash incentives have the potential to give rise to irresponsible and unfair sales practices, which could cause harm to customers and pose risks to our finance partners.

When developing and reviewing our remuneration frameworks, we ensure that no member of staff is directly or indirectly incentivised to increase sales of finance.

4.7 Customer Feedback

As with complaint handling, we take customer feedback seriously and consider all feedback provided by our customers, both positive and constructive.

We rely on customer feedback and reviews to help build our reputation, and it is in our best interests to ensure our customers have reasons to leave us excellent reviews and to tell their family, friends and colleagues about their positive experience with us.

5. Responsibilities and Governance

All staff are responsible for treating customers fairly and are expected to attend and complete all training required by UK Planet Tools Limited.

The Directors of UK Planet Tools Limited are responsible for ensuring that this policy is implemented and adhered to by all staff and will keep this policy under review from time to time.

Line managers are responsible for monitoring the conduct of their team members and are expected to follow the company’s disciplinary procedures in any event where a team member is found to have failed to comply with this policy.

Vulnerable Customers Policy

1. Introduction

Everybody has the potential to become vulnerable at some point in their lifetime. It is therefore certain that, in the course of our business, UK Planet Tools Limited will have dealings with customers who are experiencing vulnerable circumstances.

As a business engaged in credit broking activities, it is important that we have a suitable policy in place and that our staff understand how to identify vulnerability and how to adapt their dealings with vulnerable customers to meet their needs and achieve fair outcomes.

Vulnerable customers are likely to need additional assistance at some stage in order to avoid detriment (financial or psychological) when applying for or using finance.

A vulnerable customer is defined by the FCA as “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with the appropriate levels of care.”

UK Planet Tools Limited is committed to ensuring that all staff involved in the sale of products or services where finance is available are capable of identifying vulnerable customers and that they can handle a situation involving a vulnerable customer with the required levels of care, attention, and respect.

2. Vulnerability Risk Factors

A customer may find it difficult to make an informed decision about their available options for a variety of reasons. Risk factors that contribute to vulnerability in financial services include:

• Low literacy, numeracy and financial capability skills;
• Physical disability;
• Severe or long-term illness;
• Mental health problems including common mental disorders;
• Low income and/or debt;
• Caring responsibilities (including operating a power of attorney);
• Being elderly, although this is not absolute (which may be associated with cognitive or dexterity impairment, sensory impairments such as hearing or sight, onset of ill-health, or not being comfortable with new technology);
• Being young (associated with less experience);
• Change in circumstances (for example job loss, bereavement, divorce);
• Lack of English language skills;
• Non-standard requirements or credit history (for example armed forces personnel returning from abroad, ex-offenders, care-home leavers, or recent immigrants).

Living with a disability, illness or diagnosis does not in itself make someone vulnerable. In the context of financial services, it is the person’s situation and barriers to accessing such services that may make them vulnerable. Equally, a person may be vulnerable without any disability, illness or diagnosis, for example if they are recently bereaved or frail.

Vulnerability is not necessarily a permanent state. Vulnerability can come and go, be short-term and temporary, long-term or, in some cases, permanent. Each customer’s vulnerability will be unique to them and so it is important that our staff adapt their communication and actions appropriately, based on each individual customer’s needs.

3. Identifying Vulnerable Customers

For our staff to correctly address the needs of a vulnerable customer, it is important to be able to identify them. The customer may have indicated one or more of the risk factors referred to above, or one or more of the following indicators may become apparent during a telephone or webchat conversation, email exchange or face-to-face in store:

• Can the customer hear everything you are saying and do they understand what you are saying? Do they ask you to slow down or to speak louder? Are you sure they have heard and understood all the relevant details? Do they ask you to clarify any details or advise they do not understand terminology being used?
• Does the customer stay on topic and hold a conversation that is coherent, or do they appear distracted or confused? Do the customer’s responses remain relevant and are their questions typical for the discussion being had?
• Does the customer take an unusually long amount of time to answer a question that suggests they are struggling to process the information provided to them?
• Does the customer indicate they may have a disability or impairment based on their voice, pronunciation, breathing, hearing or ability to understand the conversation? Are they coherent and fluent in the language being used?

4. Dealing with Vulnerable Customers

Just because somebody is vulnerable does not automatically mean that they are unsuitable for our products and services, or that they will not be able to obtain finance. As soon as we think we may be engaging with a vulnerable customer, we take care to adhere to the requirements set out in this policy.

When dealing with vulnerable customers, staff must be aware of the following guidelines:

• Remain patient and empathetic; do not rush the customer, interrupt or appear impatient. Allow the customer to arrive at their own decisions and process the information sufficiently.
• Ensure the customer is able to hear and understand what you are saying; ask the customer to explain their understanding of what you are telling them, or include questions as frequently as possible to ensure they are aware of and understand what is being discussed.
• Allow the customer to explain thoroughly; do not assume you already know what their requirements or needs are, and do not finish off their sentences which often implies you are rushing them to progress the conversation. Listen carefully to the customer and remain conscious of any absence of understanding, hints at unawareness, or forgetfulness of topics already discussed.
• Clarify that the customer is comfortable with the standard and method of communication and offer to provide details in an alternate format such as via post or email for clarity.

When a vulnerable customer has been identified, a relevant note may be added to their record to ensure awareness extends to all staff within UK Planet Tools Limited who may deal with the customer. It is important that we maintain a consistent level of service, and that a vulnerable customer receives adequate care irrespective of which staff they liaise with. Any such notes should describe the reasons for the assessment of the customer as vulnerable and be factual, concise, not excessive, and confirm that consent has been taken to record the information.

5. TEXAS Drill

If a customer discloses information about their vulnerability it may include “special category” data, which requires us to implement additional controls under the UK GDPR. The TEXAS drill is a simple, yet effective way to treat a customer fairly, record relevant information and comply with our obligations under the GDPR:

• Thank the customer for sharing the information with you.
• Explain to the customer how you will use that information and who it will be shared with (for example our finance platform provider and the lender(s)).
• Obtain eXplicit consent from the customer to record the information and use it as explained to them. Without this, you must not record details about the customer’s vulnerability.
• Ask up to three questions to help understand more about the customer’s vulnerability, for example:
  • How does your situation make it difficult to manage your finances?
  • Do you have any specific communication needs or preferences that we can share with your lender to help them meet your needs?
  • Do you have anyone who could help you with deciding about whether to apply for finance?
• Signpost the customer to sources of free and independent help and support if appropriate, such as their local Citizens Advice Bureau, the Money Advice Service, Mind or the Samaritans.

6. Mental Capacity

Mental capacity relates to the ability of the individual to understand and to retain and evaluate relevant information in order to make a decision based on that information.

If a member of staff believes that a vulnerable customer is unable to make a decision for themselves regarding finance, they should, where appropriate and lawful, attempt to identify a carer, attorney or next of kin who is authorised to act on their behalf with respect to their financial affairs. In many cases, a parent or spouse will represent the interests of the vulnerable customer.

7. Product Information and Financial Promotions

We acknowledge that there are limits to what we can reasonably do to form a view as to whether a customer is in a vulnerable situation, especially when they follow an online journey on our website.

However, it is good practice in product information and any financial promotions, whether online, in-store or over the telephone, to be clear, concise and transparent with customers about the key features of the financial services. As a responsible credit broker, we are committed to meeting high standards of customer communication and will always adhere to the content and conduct requirements agreed with our finance providers.

Where our staff may engage with customers about finance, those staff will only be permitted to do so once they have successfully completed the relevant training and acknowledged that they have read and understood this policy.

8. Our Commitments to Treating Vulnerable Customers Fairly

To ensure we treat vulnerable customers fairly, UK Planet Tools Limited will:

• Provide all relevant employees with initial training in identifying and dealing with vulnerable customers.
• Provide ongoing training and regular updates to ensure employees continue to implement our policies.
• Use systems that, where possible, facilitate the identification of vulnerable customers.
• Use systems that enable us to deal with vulnerable customers in the most appropriate manner, so their needs are met.
• Factor the needs of vulnerable customers into the service provision and design of the products we offer.
• Ensure our policies are clear to customers and to the third-party organisations we deal with, including our finance providers.
• Use management information and other data regularly to review and improve our policies and procedures.
• Ensure the proper recording and reporting of information with the customer’s explicit consent and, where appropriate, bring this to the attention of our finance providers.
• Ensure that the customer has understood the advice and information made available to them, prior to deciding whether to apply for finance.