There’s been a lot of discussion over the past year about Consumer Duty, what it means, how it should be applied, and what “good” really looks like in practice.
In home improvement lending, it’s not an abstract concept. It’s something that needs to be lived every day.
Because in this market, lenders don’t operate in isolation. We rely on a network of retailers and introducers to bring products to customers, often in sectors like solar and heating, where the decisions being made are complex, technical and, in many cases, high value.
That makes oversight absolutely critical.
Consumer Duty Doesn’t Stop at the Point of Sale
One of the key principles behind Consumer Duty is that firms are responsible for delivering good outcomes, not just at the point of lending, but across the entire customer journey.
In practice, that means looking beyond the credit decision itself.
It means asking:
• Is the product being explained clearly?
• Are savings or performance claims realistic and evidence-based?
• Does the customer fully understand what they’re signing up to?
These questions often sit with the retailer interaction, not the lender directly. But the responsibility still sits with us.
That’s why monitoring and oversight of retailer behaviour is such an important part of getting this right.
The Importance of Independent Validation
At Tandem, we’ve always taken the view that strong governance in this space isn’t optional, it’s essential.
That’s why we work with partners like HIES and EPVS, who provide independent validation of retailer processes, documentation and customer interactions.
This isn’t about adding friction. It’s about adding confidence.
It ensures that:
• Customer documentation is complete and accurate
• Processes are followed consistently
• Outcomes stand up to scrutiny
In a market that has seen its share of inconsistency over the years, that level of independent oversight helps protect everyone involved, customers, retailers and lenders alike.
Raising Standards Across the Market
The regulatory focus we’re seeing now is, in many ways, a positive step.
It’s pushing the industry toward higher standards, greater transparency and more consistent customer outcomes.
But it also highlights an important point: good practice in this space has always required strong partnerships and clear accountability.
Retailers play a vital role in helping customers access energy-efficient home improvements. But that role needs to be supported by robust frameworks that ensure those interactions are fair, transparent and well governed.
From Compliance to Confidence
Consumer Duty shouldn’t be viewed purely as a compliance exercise.
Done properly, it builds trust.
For customers, it means greater confidence in the decisions they’re making.
For retailers, it provides a clear framework to operate within.
And for lenders, it supports sustainable, long-term growth.
Getting the Balance Right
As demand for green home improvements continues to grow, the importance of getting this balance right will only increase.
Access to finance is important. Growth in the sector is important.
But neither should come at the expense of customer outcomes.
Strong oversight, the right partners and a shared commitment to doing things properly are what make that possible.
That’s what Consumer Duty looks like in practice.
This article reflects industry perspectives on Consumer Duty and is intended for professional discussion and intermediary use only.
