Charging fee policy
What is it?
Where you intend to charge a fee for your services to a client
Policy:
Loan Market typically inhibits charging customers a fee and will only allow upfront fees to be charged to clients in certain circumstances.
In order to charge a fee, these requests always have to be considered and approved by compliance, regardless of their nature.
These circumstances will typically relate to situations where:
- You're providing assistance to a consumer for a short term loan (for example bridging finance)
- Complex scenarios such as those involving multiple entities / company structures / trusts, non natural-person
The following will not be considered:
- Clawback reimbursement (prohibited by law)
- Cost recovery - Disbursement fee (prohibited by LMG)
How / Process:
- You must provide a quote document to the client(s) that stipulates the proposed fee.
- This quote needs to be provided prior to credit assistance being provided - as such this should be given to your client at the same time as the Hello Pack and no later than the Game Plan
- The client(s) must sign a copy of the quote and a copy must be saved within My CRM
- All fee invoices are requested through LMG Corporate - you cannot request or demand payment directly or before credit assistance has been provided.
- All fees must be reviewed and approved by Compliance by emailing compliance@loanmarket.com.au
Debt Management Services (DMS):
You are prohibited, under law, to charge a fee for debt management services unless you hold an Australian Credit Licence for debt management services or are appointed as a credit representative under a licensee who holds such a licence.
The Loan Market Group Australian Credit Licences will not be varied to include DMS and therefore no credit representative of those licences will be able to charge a fee for DMS. For more information on Debt Management Services, see the policy here.
For more information please contact compliance@loanmarket.com.au
