Criteria Student Current Accounts

Criteria for the FairLife Student Current Account Mark

1. An interest free overdraft.

  • The first pre-agreed overdraft on a FairLife Student Current Account must be interest free.

2. No penalty fees.

  • Students may be charged an interest rate for borrowing more than the pre-agreed overdraft limit, but this should be a charged daily, on the excess borrowing, and should not trigger an admin or penalty payment.  The interest rate charged above any pre-agreed overdraft limit, and the hard-level above which no more credit will be allowed, are matters for individual providers to decide.

3. Limiting negative footprints in the student’s credit history.

  • Both the account holder extending their overdraft beyond the pre-agreed limit and the account provider shutting-off the supply of credit must be considered part of the normal operation of the account.  Students using these features must not have their credit histories marked in a manner which indicates negative behaviour.  This criterion does not prevent the licensee from flagging other areas of concern to a CRA such as deliberate falsification of information.

4. Notification of account balances.

  • The licensee must offer to provide the account holder with an immediate email and/or text message notification should the account balance exceed a pre-agreed overdraft limit. 

5. Extension of the terms beyond student status.

  • The terms of the account should be honoured for a minimum period of one year after the student’s course has finished.

 

To download a summary of the mark click here

To download a licence for the mark click here