Phil Wilding Archive

Mental health and borrowers

Getting the balance right when identifying and dealing with customers who have mental capacity limitations is vital. This isn’t anything new and is already stipulated by our Regulators but recent media coverage indicates as an industry we still haven’t quite got it right. When looking at your own operation can you honestly say you fully demonstrate compliance and act in the spirit of how the regulations were written?

OFT issues new guidance on continuous payment authorities

The OFT has issued a set of principles for businesses using Continuous Payment Authorities (CPA’s) to clarify core standards. Guidance is provided for pre-contracts, the life of the contract and cancellation of contracts to ensure customers know what they are signing up to and their right to cancel. Businesses failing to act within the principles may face enforcement action from the OFT. It is not sufficient simply to include brief details in the Terms and Conditions of a contract; details must “be set out clearly and in plain, intelligible language, and brought prominently to the consumer's attention”.

Compliance - who are your approved persons?

The forthcoming move to the FCA Regime should have us all wondering what the operational impacts of the changes to our regulatory environment will be. The enhancement of appointing an approved person for ensuring compliance with regulatory requirements and reporting metrics is the first hurdle. By now you should be well underway with the appointment of the approved person. If not, you still have time, but you must not delay because finding the right person can take time and is key.

New lending code

On 1 May 2012, the Lending Standards Board (LSB) published a revised version of the Lending Code (the current version of which is dated March 2011). As announced in December 2011 the LSB has revised the Lending Code to extend the provisions relating to the sale of debt and outsourcing of collections activity to debt collection agencies. The revised provisions are set out in paragraphs 228 to 238 (Debt collection agencies and debt sales) of the Lending Code.

Debt collection agencies need to get compliance right

With an increased regulatory focus on debt collection it is now critical to be able to evidence a compliant culture that is consistent through call content, letters and processes. Lip service won’t cut it, it’s all in the evidence. The OFT and Lending Code are dovetailing their requirements with a heavy focus on consumer experience, ensuring consistency of the customer journey. The onus is on the creditor to monitor compliance and collection practices of the agency they have outsourced to.

The Mortgage Repossession Act 2010

The Mortgage Repossession (Protection of Tenants etc) Act 2010 came into force at the beginning of October 2010. The Act and its supporting regulations provide some limited protection for unauthorised tenants (tenants occupying without the consent of the landlord’s lender) in residential property to bring them broadly in line with the safeguards afforded to authorised tenants under the Protection From Eviction Act 1977.
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