StepEx

Regulatory and compliance

This page explains who provides StepEx finance, who regulates it, what education providers may and may not do, and the protections that apply to every borrower.

Regulatory status

Regulated credit is provided by StepEx Lender Ltd, a wholly owned subsidiary of Step Exchange Ltd. StepEx Lender Ltd is authorised and regulated by the Financial Conduct Authority to carry on consumer credit activities, under Firm Reference Number 824928. You can verify this on the FCA Register As an authorised firm, StepEx Lender Ltd is subject to FCA supervision and must comply with the FCA's rules on consumer credit, financial promotions, affordability, the fair treatment of customers and the Consumer Duty, and with the Consumer Credit Act 1974. Step Exchange Ltd is the group holding company. It operates this website and the StepEx platform and provides services to education providers. It does not provide credit.

Relationship with education providers

Education providers signpost students to StepEx using financial promotions created and approved by StepEx. The model is designed to be used by providers without their own FCA permission: StepEx holds the permissions for the lending, and provider staff do no more than display approved promotions and direct students to StepEx. StepEx's analysis of how the model stays within the FCA's perimeter is published In all cases:

  • Regulatory accountability for credit remains with StepEx.
  • Education providers do not provide credit advice.
  • Education providers do not collect repayments, and may not apply academic sanctions for amounts owed to StepEx.
  • Education providers must not describe or endorse finance terms unless using StepEx-approved copy.

Financial promotions

All financial promotions relating to StepEx finance are subject to FCA requirements.

  • StepEx creates and approves every financial promotion relating to its products.
  • This includes StepEx-owned pages, each provider's finance page on stepex.co, and content placed by education providers.
  • Communications issued by education providers are made through StepEx-approved promotions.
  • Where a promotion states a rate of interest or an amount relating to the cost of credit, it carries a representative example, including the representative APR, as the rules require.

Affordability and lending decisions

Before approving any agreement StepEx checks the applicant's identity, assesses affordability and creditworthiness, and applies any eligibility rules the education provider has set. StepEx uses Experian, a credit reference agency, in that assessment. Approval is not guaranteed, and StepEx does not change a lending decision for commercial reasons.

Information before and after signing

Every applicant receives, before signing, the pre-contract credit information (SECCI), an adequate explanation of the agreement, and the agreement itself, showing the amount of credit, every charge, the total amount payable and the APR. After signing, borrowers receive annual statements and the statutory notices the Consumer Credit Act requires.

Withdrawal

Every borrower may withdraw from the finance agreement within 14 days of signing, under section 66A of the Consumer Credit Act 1974. Withdrawing from the finance does not withdraw the student from the course. Course withdrawal, deferral and refunds are matters for the education provider under its own terms.

Repayment history and credit reporting

StepEx reports repayment history to Experian. Repaying on time can help a borrower's credit file; missed repayments and defaults can harm it and make credit harder or more expensive to obtain.

Financial difficulty

Borrowers who are worried about repayments can ask StepEx for help at any time. StepEx also signposts free, independent debt advice from MoneyHelper, StepChange, National Debtline and Citizens Advice.

Complaints

StepEx has a complaints procedure. StepEx aims to resolve complaints promptly and sends a final response within eight weeks at most; if it cannot, it writes to explain why. A complainant who is unhappy with the final response, or who has not received one within eight weeks, may refer the complaint to the Financial Ombudsman Service, free of charge, within six months of the final response.

Data protection

StepEx Lender Ltd and Step Exchange Ltd each process personal data for their own purposes, as the privacy policy explains. Both are registered with the Information Commissioner's Office: StepEx Lender Ltd under number ZC278407 and Step Exchange Ltd under number ZA348090.

Card payments

Where StepEx takes card payments, it does so through a PCI DSS Level 1 certified payment provider and maintains the PCI DSS compliance appropriate to its role. StepEx does not store card details.