Foundation Course

Learning objectives

The Foundation Course is primarily targeted at people with three to six months experience in the industry. By the end of the course, including reading the pre-course manual, those who attend should:

Be able to describe the position of the secured loan market in the financial services industry as a whole
Understand the key terminology used in the market
Be able to describe the key stages in the life cycle of a secured loan
Understand the regulatory framework within which the industry operates
Understand the practical implication of the regulatory framework both for company practices and for their personal behaviour
Appreciate the impact of their actions on the customer

Structure and content

The day’s training begins at 9 o’clock in the morning and finishes around 5 o’clock. The training is broken down into the following headings:

Introduction

The Basics

Definition of the industry
Lending
Why lenders have different interest rates
Fees
APRs
Product types
Secured and unsecured loans
Payment Protection Insurance

The Regulatory Environment

Consumer Credit Act including the Non-Status Guidelines
Financial Services Authority (in relation to PPI)
FOS
Data Protection
FISA

Advertising

Different media
Key requirements under the CCA

Application and Assessment

Data collection (including Fair Processing Warnings)
Use of credit reference agencies
Lender selection
PPI – advised and non-advised sales
Fees

Application Processing

Consideration periods
Documentary requirements
Loan agreements

Loan administration

Data Protection Act and use of credit reference information
Anti-money laundering
Further advances
Portability
Arrears and default notices
Early settlement of loan and PPI

Complaints

What is a complaint?
Process and timeframes – within firms and in FOS
An opportunity to learn

The exam

The training day finishes with a 30 minute, multiple-choice, exam. To pass candidates must achieve a score of 76% or over 94% to obtain a distinction.