This domain is about issues relating to borrowing, including: the main sources of credit and lending; illegal and informal money lending; secured and unsecured borrowing; the costs of borrowing; credit scores and credit history; buying a home; scams. The domain comprises Tiers 1 and 2 only.
It is important that you are aware of where the regulated boundaries are and do not go beyond them (please refer to ‘The boundaries of the service and of your role’ and the description of advice and guidance). Guidance should provide information and/or options on customers' choice of borrowing method (e.g. credit card, loan etc.) without making an explicit recommendation.
3.1.1 | Awareness of main sources of credit and lending (e.g. banks, credit unions) and the differences between them |
3.1.2 | Awareness of sources of illegal or informal money lending, such as loan sharks, family and friends |
3.1.3 | Awareness of the sources of affordable credit available for those with poor credit history |
3.1.4 | Awareness of how to work out the costs involved in borrowing |
3.1.5 | Awareness of the difference between secured and unsecured borrowing |
3.1.6 | Awareness of the process of buying a home (e.g. securing a mortgage; valuation and surveys; removals etc) |
3.1.7 | Signpost of refer customers to appropriate sources of information on loans and other products, including price comparison sites |
3.1.8 | Awareness of scams and what to do if a customer has been the subject of a scam |
3.1.1 | Awareness of the common types of debt on which customers typically seek advice and guidance (e.g. credit cards, loans, council tax/rates etc.) |
2.1.2 | Awareness of the difference between priority and non-priority debts |
2.1.3 | Awareness of the likely triggers for debt |
2.1.4 | Awareness of reasons why individuals might seek out loans from illegal or dubious source such as loan sharks, family and friends and typical issues this can cause |
2.1.5 | Determine if customers are managing to keep up with payments, if they cannot cope, or if there is an urgent situation (e.g. enforcement agents) |
2.1.6 | Signpost or refer customers to appropriate local and national organisations that provide advice and guidance on debt issues and sources of support |
2.1.7 | Support customers in accessing online portals and using toolkits, which might include completing information on their behalf |
2.1.8 | Provide factual information in response to specific, targeted questions (e.g. describing a debt management plan; individual voluntary arrangement etc.) |
2.1.9 | Awareness of scams and what to do if a customer has been the subject of a scam |
3.2.1 | Knowledge of how guarantor loans operate |
3.2.2 | Knowledge of credit scores, how they can be affected (including how they can be improved) and how they are used |
3.2.3 | Knowledge of how to correct incorrect information on a credit file |
3.2.4 | Knowledge of the main sources of credit and borrowing (e.g. banks, Credit Unions) |
3.2.5 | Knowledge of the types of products that are available to individuals with poor credit history |
3.2.6 | Knowledge of sources of guidance for calculating interest and repayments, such as online calculators |
3.2.7 | Knowledge of credit reference agencies and organisations |
3.2.8 | Knowledge of how to use price comparison sites, calculators and other tools, and advise customers on their use |
3.2.9 | Knowledge of the typical costs involved in moving home (e.g. removal, storage; furnishings and decoration etc.) |
3.2.10 | Knowledge of the up-front and ongoing costs involved in home-ownership (legal fees; stamp duty/land transaction tax; maintenance etc.) |
3.2.11 | Knowledge of the factors that are taken into account by lenders when making a mortgage offer |
3.2.12 | Knowledge of government and other low-cost buying and ‘assist-to-buy’/assisted home ownership schemes (including shared ownership) |
3.2.13 | Knowledge of the different types of mortgages (e.g. interest-only; variable rate; tracker etc.) |
3.1.1 | Awareness of the common types of debt on which customers typically seek advice and guidance (e.g. credit cards, loans, council tax/rates etc.) |
2.1.2 | Awareness of the difference between priority and non-priority debts |
2.1.3 | Awareness of the likely triggers for debt |
2.1.4 | Awareness of reasons why individuals might seek out loans from illegal or dubious source such as loan sharks, family and friends and typical issues this can cause |
2.1.5 | Determine if customers are managing to keep up with payments, if they cannot cope, or if there is an urgent situation (e.g. enforcement agents) |
2.1.6 | Signpost or refer customers to appropriate local and national organisations that provide advice and guidance on debt issues and sources of support |
2.1.7 | Support customers in accessing online portals and using toolkits, which might include completing information on their behalf |
2.1.8 | Provide factual information in response to specific, targeted questions (e.g. describing a debt management plan; individual voluntary arrangement etc.) |
2.1.9 | Awareness of scams and what to do if a customer has been the subject of a scam |
Find out about external training for the borrowing domain.