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.
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