Dimension 4: Treat clients responsibly
Treating vulnerable clients in a responsible manner should be the bare minimum requirement for providers. This means protecting clients from over-indebtedness, treating clients fairly and respectfully, ensuring their privacy, resolving their complaints, and using transparent prices. Dimension 4 has five standards:
Standard 4a
Prevention of overindebtedness
Avoiding over-indebtedness means aligning all steps in the credit process - from design, appraisal, monitoring and reporting - to ensure that client debt does not exceed their capacity to repay.
Standard 4b
Transparency
Transparency means giving your clients the right information at the time and in the right way, so they can clearly understand and take informed decisions. This includes providing transparent information on product pricing, terms and conditions.
Standard 4c
Fair and respectful treatment of clients
Providers should define clear values around fair and respectful treatment of clients, and enshrine these in policy and practice. Respect for vulnerable clients in especially important in the sales and collection processes.
Standard 4d
Privacy of client data
Ensuring the privacy of clients' data means having the right technological systems in place, and informing clients about their rights and responsibilities.
Standard 4e
Mechanisms for complaint resolution
Financial service providers (FSPs) should value, encourage, and resolve client complaints in a swift, fair and transparent manner. Not only will this improve client trust, but provide a useful source of feedback about your products, services and staff.