The FCA’s Thematic Review: Peter Jordan Comments27th February 2014
The FCA have published their long awaited findings of their Thematic review of Mortgage Lenders arrears management and forbearance.
There are no major surprises but there are things to do. It appears to have been well received in the industry.
Below are some of the key points .
- Embedding a customer-orientated culture in arrears management is the key to achieving good outcomes for customers.
- Engaging early with customers is likely to lead to the best results.
- The FCA accept that firms’ arrears management have improved since the last thematic review.
- They believe that there needs to be more emphasis on delivering consistently fair outcomes for customers which relate to their individual circumstances.
- Concern was expressed as to whether the delivery of the best outcomes for customers by firms was over prescriptive and too much of a tick box exercise.
- TCF is not embedded fully at all firms.
- Firms are not always proactive and forward looking in their strategies.
- In some cases good outcomes are not being delivered due to rigid systems and processes due to in part a lack of investment.
- Action should be taken to invest in systems and people due to concerns about potential interest rate rises.
If you wish to discuss this report and how it may affect you please contact Peter Jordan.