Enhanced Declines Procedure (EDP)
In today’s lending market, with the focus on treating customers fairly, intermediaries need to consider all of the options which may be appropriate for their client when asked to source financial solutions for debt consolidation.
Although Loanoptions.co.uk boasts one of the most comprehensive secured loan panels available, there may be occasions where an appropriate product cannot be sourced. This is why, after taking into account feedback from the intermediary market, Loanoptions.co.uk has launched its exclusive Enhanced Declines Procedure.
What is the EDP?
The Enhanced Declines Procedure offers Introducers to Loanoptions.co.uk the opportunity to ensure they are treating their customer fairly in line with FSA requirements, by providing their client with every solution available to resolve any financial difficulties they may be experiencing.
The typical reason for a secured loan decline is poor credit, combined with a lack of equity in the applicants’ property. This indicates that the majority of applications declined by the whole-of-market secured loan products available through Loanoptions.co.uk are looking for a solution to enable them to consolidate existing outstanding finance.
MCOB (Mortgage Code of Business) 4.7.6 states that:
Where a firm makes a personal recommendation for a mortgage, the main purpose of which is to consolidate existing debts, the following matters must be considered:
- the cost associated with increasing the period of repayment
- Whether it is appropriate to secure a previous unsecured Loan
- If the customer is known to have payment difficulties, whether it would be more appropriate for the client to negotiate an arrangement with his creditors than to take out a mortgage
Loanoptions.co.uk has forged a unique partnership with one of the UK’s leading business-facing debt solutions providers to give introducers the option of sourcing an alternative financial opportunity for their clients. With your permission, any client referred to Loanoptions.co.uk and subsequently declined for a secured loan will be offered advice on debt solutions as an alternative means of consolidating their finances.
As the introducer, you will of course be kept fully informed of any advice given to your client, and will benefit from an enhanced referral fee should your client wish to proceed with an alternative means of finance.
Contact your Introducer Manager today to find out more about this exclusive process, and see how Loanoptions.co.uk strives to treat your customer fairly.