TCF key factor to averting equity release market scandal

Amanda Jarvis

March 3, 2006

Discussing ‘Treating Customers Fairly’ (TCF) at the Mortgage Business Expo in Glasgow, he
argued that the pensions, and possibly, the endowments scandals could have been
avoided if TCF measures were in place at the time. He said: “Equity release is a scandal in waiting if it is sold to the wrong people. If it is sold as a quick buck it won’t work.”

He added that equity release was a very good product for the right borrower, and urged brokers to highlight any caveats in products to potential borrowers. He said: “Some deals are suitable for some borrowers, but completely unsuitable for others. Lenders should
make it clear who the products are designed for.” He added that TCF should now
be a culture and be implemented across the board, from the junior staff that
may be at the front of the business dealing with customers, to the chief executive. He added that in a number of cases the best advice may be to reject a clients request if the broker feels it does not represent sound advice or fulfil firms TCF.

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