The CRD is integral to British Money’s affiliate mortgage and loan protection proposition and uses a series of robust controls and measures with Key Performance Indicators to ensure lenders meet their Treating Customers Fairly obligations.
Tailored to each affiliate, the CRD’s monitoring benchmarks range from; staff training/completion of a TCF assessment, compliance reviews and product suitability to quality of customer information, the discussion of disclosure documents, Key Facts controls and management reviews.
In a move unseen within the industry, lenders are absolved of the usual regulatory, financial or reputational risks associated with the sale of Payment Protection Insurance as the responsibility for the entire sales, administration and claims process is taken by A-rated insurer, Cigna, supporters of British Money.
CRD activities are undertaken by Cigna and measured on a monthly, quarterly and annual basis.
British Money director Alexander Burgess said: “No other protection provider can match our proposition – a five star Defaqto-rated benefit-rich policy with three months free cover, the provision of a conduct risk reporting protocol and whole process control.”
The protection specialist believes its proposition is far superior to anything else available in this sector as it enables affiliates to not only evidence to the Financial Conduct Authority they’re treating customers fairly, but demonstrate they exceed the FCA’s Mortgage Market Review ‘checking affordability’ guidelines by showing they’re stress testing against changes to customers’ financial circumstances as well as interest rate rises.
Burgess added: “The FCA has hinted it will review its MMR guidelines so this puts affiliates ahead of the game. Our proposition potentially lowers the level of delinquent loans lenders hold within their portfolio, reducing the likelihood of future FCA scrutiny and possible fines for ‘irresponsible’ lending.”