Criteria for debt recovery


As a minimum, the criteria need only apply to FairLife Debt.  That is debt that arrives marked with a FairLife logo or the words FairLife Debt.  This has the added advantage that the original creditor has also agreed to the key criteria of the debt recovery mark.


Core criteria of the fair trading Mark

1. The product or service must be fairly traded and honestly priced.
a. The provider must follow the spirit of the FCA’s rules and principles with an emphasis on treating customers fairly.
b. Material profit must be made only from positive aspects of the customer journey.  Any extra fees or charges must be designed only to cover additional costs and not to generate material profits.

Additional criteria for debt recovery

2. Customers must be informed that they can get free debt advice.
The information must include key benefits that the customer may gain by seeking the advice.  Customers must be told that seeking help may:
• Enable them to regain control of their finances by finding an appropriate solution
• Help them to receive breathing space while free advice is being sought
• Reduce the likelihood of legal action being taken against them
3. The provider must not profit from customers in debt recovery.
The provider must add nothing by way of interest, fees or costs to customers in debt recovery, with the exception of court fees and costs
4. Non-FCA regulated debt must be treated in the same manner as FCA regulated debt.
5. Customers must be protected when debt is sold or passed on.
When passing on or selling debt within in the UK the recipient must be informed that it is FairLife Debt.  If the recipient is not part of the FairLife initiative, adherence to these four criteria must be included as part of the transaction.

Criteria 5 can be achieved easily by passing the debt to a FairLife debt recovery firm.

The FairLife Mark is a mark of integrity that can, at the charity's discretion, be awarded based on the provider’s own declarations.  The licensee may use the mark on selected products and cancel at any time 

To download a summary of the Debt Recovery Mark click here

To download a licence for the Debt Recovery Mark click here