A total of 1,552 intermediaires answered the question: "Do you feel secured loans and debt solutions play an important part when considering TCF and your clients requirements to consolidate debt or capital raise?"
The results were:
- Yes: 64.66%
- Sometimes: 19.83%
- No: 15.52%
Steve Walker, Managing Director, Promise Solutions, says:
"It’s clear that brokers, in the main, recognize the importance of considering secured loans and debt solutions. However the evidence suggests that many are still unsure how to operate in the sector but doing nothing can put intermediaries at risk of criticism.
"There are a few simple guidelines I would suggest. Firstly treat loans in a similar way to a remortgage. Do your research, explain the options to your client (advised or non advised) document the basis of the service you have offered and always keep records of the research you have done.
"The best master brokers will provide you with details of the other products available and declines so you have a clear audit trail. If clients cannot borrow but are struggling with excessive debt, document that fact that you cannot arrange consolidation finance and pass them to a debt solution expert.
"Make sure that company offers a full gambit of solutions, including loans to service reduced settlements, and will take responsibility for the ultimate product offered. Just offering debt management or trying to do it yourself can be a dangerous route to take unless you are fully compliant with the latest OFT guidelines.
"Offering loan or debt solution products is easier than arranging a remortgage but the same professional principles of transparency and TCF should apply. Find a partner which will look after your interests and make it easy for you to transact in a professional manner so your client is looked after and you generate valuable incremental income.
"But make sure you document what you have done and why."
