Industry must not lose sight of issues that matter

13 October 2008

While the financial markets continue to suffer, it would be easy to lose sight of the changes that will be taking place in the secured loans industry and if we are not careful they will happen while we have been preoccupied with wider global issues.

Thanks to the Association of Finance Brokers, any intermediary whether a member of the AFB or not can get access to its White Paper setting out the likely options the UK might adopt in the light of the latest European Consumer Credit Directive, which will have a direct effect on the way we operate.

Because the Directive affects all unsecured lending, the UK is required to make significant revisions to the existing CCA.

The issue at stake is that while the CCD does not directly affect secured loans, the devil is in the detail and to make it work the CCA will have to be altered which will bring changes to the way that secured loans are transacted.

If people are really committed to the future of secured loans, I would urge everyone with an interest in lending and the future direction of the industry, particularly from a compliance point of view, to get a copy of the White Paper.

While the deadline has passed to send back responses, the paper stands as a benchmark of how complex issues can be broken down to a simple summary. The options which the government might consider are all clearly explained and the possible ramifications of each one.

The AFB is to be congratulated on producing a well researched and understandable briefing.

It is good to see that our trade body is really working hard behind the scenes and if this white paper is an example of the quality of future output then we are in good hands.

However, it is at times like this when there are larger issues at stake, it would be easy to miss something happening that is right under our noses that could significantly change the landscape. Given the current circumstances, well done to the AFB for not taking its eye off the ball!