The Association of Finance Brokers has published a customer information fact sheet on secured loans in response to requests from its members.
The fact sheet contains an outline text that members can adapt for their own purpose and place within their own documentation, and branding, to explain relevant issues to customers.
It is provided free of charge to AFB members, the document includes information on what a secured loan is, differences between secured and unsecured loans, ability to compare products, cancellation and early termination, remuneration, data protection and complaints procedures.
Robert Sinclair, director of AFB, says: “Many of our members have requested that we produce a secured loans customer information fact sheet, similar to those issued by other bodies. While there can be no compulsory requirement for a firm to issue a Customer Information Booklet, there are certain regulatory obligations to provide key information in relation to loans, which the customer information fact sheet addresses.
“As the industry moves forward, particularly with the adoption of the Consumer Credit Directive in Europe and the final changes to the Consumer Credit Act, an alternative, free of charge approach for AFB member firms has been adopted.”