FACE unveiles a new code of conduct to bolster customer protection
The code is slated to become obligatory for all 44 lending members associated with FACE, collectively representing nearly 50 percent of the retail market share in unsecured digital lending via digital lending applications.
The Fintech Association for Consumer Empowerment (FACE) has recently unveiled a new code of conduct aimed at digital lenders within the fintech industry. This initiative seeks to promote consumer interests and establish safeguards against potential harm.
The code is slated to become obligatory for all 44 lending members associated with FACE, collectively representing nearly 50 percent of the retail market share in unsecured digital lending via digital lending applications. These fintech entities are expected to implement the prescribed changes within a three-month timeframe, aligning themselves with the new regulations.
CEO of FACE, Sugandh Saxena, said, “This code really looks at a lot of learning, which has happened over the three years as, as you said, recovery practices, data protection, cybersecurity issues. If you look at the code, our earlier code had just two norms when it comes to recovery practices. Today, we have 10 norms saying what exactly has to be done when it comes to recovery practices. So this code is much more granular, a much more clear set of rules for a member so that it's very easy for them to implement. And we really hope that this will help all the members to really push the benchmark in terms of customer protection.”
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For a full interview, watch the accompanying video
(Edited by : Sangam Singh)
First Published: Sept 15, 2023 8:48 PM IST
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