TCF matters in the repossession chain

29 March 2010

When considering the Treating Customers Fairly initiative many will think of how it affects the sales process.

There’s also been an increasing focus on the customer experience during the life of the loan. The Financial Services Authority has been looking carefully at the issue of fees, particularly with regard to borrowers in arrears.

But there has been less consideration of how TCF principles should be applied when lenders have to repossess homes.

Lenders and suppliers such as asset management companies have an obligation to ensure that a borrower’s shortfall - the debt that remains after the sale proceeds have been applied to the mortgage balance - is minimised.

Getting the best possible price in the shortest time is usually key to achieving that goal.

With interest continuing to accrue to the loan any delay in the disposal of a property is usually detrimental.

With TCF, all actions must be taken in the best interests of customers so asset managers should have procedures in place to ensure TCF guidelines are foremost in the minds of their staff.

Those handling repossession sales must be trained and driven to achieve results, meaning they sell properties for the best price and in the shortest time.

At Spicerhaart we have a management information system in place to show that the correct behaviour is adopted when properties are repossessed and that this contributes to a positive outcome from a TCF perspective.

If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat