CHO Code of Practice

Alternative Dispute Resolution

• The Objectives of the Code• The Code itself• Correspondence with TCF• Alternative Dispute Resolution (ADR)

The CHO Code of practiceKey objectives

Demonstrate the standards expected of credit hire operators by its trade association

Give customers and suppliers alike, confidence in the consistency of service throughout the industry

Ensure all members are aware of the need to represent the industry with professionalism

and competence

Confirm adherence to the GTA principles to facilitate productive negotiations with insurers

through the Technical committee

The CodeMembers Must:

• Abide by the code• Conduct their businesses in accordance with applicable laws and regulations to which they are subject• Act with integrity and act in a way that maintains public confidence in the services credit hire companies (CHCs) provide • Run their business effectively and in accordance with proper governance and sound financial and risk management principles• Where relevant take appropriate steps to protect client money they may handle (e.g. customer insurance excesses)• Acknowledge that CHCs and their referral partners, may be the target of fraud and take appropriate steps to ensure that each claim is genuine• Treat all customers fairly• Ensure that the vehicles supplied to customers are insured, safe, roadworthy and have been adequately maintained

The Code• Submit claims to insurers only after consideration that:

- The claim is genuine - The circumstances of the accident justified the hire of a replacement vehicle - The customer NEEDED a replacement vehicle - The type of vehicle provided, or claimed for, is reasonable given the circumstances and the law - The length of hire is reasonable given the circumstances and the law - The amount claimed is reasonable given the circumstances and the law

• Ensure their employees are adequately trained and that a person, or a group of people is responsible for keeping policies, procedures and documentation compliant with good practice, the law, or any other regulation to which their business is subject• Keep customers informed as to the settlement of claims and provide appropriate support to customers (including, where relevant, facilitating access to legal advice) if claims are disputed

The CHO Executive Committee• Determines compliance to The code

• May suspend or terminate any member’s membership if it determines any member has breached the code or brought the integrity of the CHO into disrepute

• Demand members accept this process of determination

• Confirm that members accept that on suspension or termination - no subscriptions will be refunded - no longer may use the CHO logo - nor any documentation that purports that they are CHO members

Treating Customers Fairly (TCF)

• FCA Regulation

• Outcome based

• Code of Practice is more task oriented

• Strong correspondence between

• TCF Outcomes

• Code of Practice

The TCF outcomes• Consumers can be confident that they are dealing with firms where the fair

treatment of customers is central to the corporate culture

• Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly

• Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale

• Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture

• Consumers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and as they have been led to expect

• Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint

TCF Outcomes

• Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture

•Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale

Code of Practice

• Act with integrity and act in a way that maintains public confidence in the services credit hire companies (CHCs) provide

• Submit claims to insurers only after consideration that (etc)• Keep customers informed as to the settlement of claims and

provide appropriate support to customers (including, where relevant, facilitating access to legal advice) if claims are disputed

Treating Customers Fairly

• TCF is established throughout the firm: systems, controls, culture, strategy, training, remuneration and staff behaviours

• The company recognises that TCF is ongoing – not a short term project

• TCF must be monitored by adequate measurement and management information

• TCF should provide an improvement in the ‘quality of outcomes’ for a company’s customers

Alternative Dispute Resolution

• Government initiative to reduce litigation

• Trade bodies (and others) invited to become providers

• Not clear whether, if regulated, the ADR provider is a given. i.e. FCA and FOS.

• If The CHO could become an ADR provider it would add credibility and assist members

Alternative Dispute Resolution ABTAAssociation of Chartered Certified Accountants (ACCA) British Vehicle Rental and Leasing Association (BVRLA)Centre for Effective Dispute Resolution (CEDR), incorporating IDRS Dispute Resolution Ombudsman (DRO)  Federation of Master Builders Furniture Ombudsman 

Home Improvement Ombudsman (HIO) Motor CodesNational Conciliation ServicesNetNeutrals EUOffice of the Independent Adjudicator for Higher Education Ombudsman ServicesPro Mediate Property Redress SchemeRenewable Energy Consumer CodeSmall Claims Mediation

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Final thought

Regulation, if properly implemented and thought through is a source of profit, not a cost.