With much industry discussion around the sales processes for advisors to offer remortgages, further advances and secured loans, Promise Solutions has launched, what it claims to be, the only truly complaint process available for secured loans which can also increase sales conversions.
Steve Walker, Managing Director at Promise said:
“Many advisors have historically believed that the exclusion of secured loans from FSA regulation permits a much more relaxed approach to the sales process. However the real issue is about having an appropriate sales process in place irrespective of the product offered.
"Each advisor has a duty of care to their clients to make it clear what products they offer, carry out appropriate research on each product which leads to a documented recommendation or non advised sale.
"It also aids the sales process by clearly comparing preferred options against less favourable alternatives.
"Some networks also take responsibility for broker’s advice on secured loans and this system is a must for them. It has been tested with one of our network partners and become part of the standard process.
"With broker’s advice under the eye of both claims companies and the regulator, we need to learn from the PPI sector and ensure the sales process across FSA regulated and “unregulated” products is well documented.
"As case law evolves and precedents are set, the interpretation of best practice will also change and those found lacking may lay themselves open to attack in the future.”
Using Promise’s free sourcing platform, introducers are automatically provided with a detailed audit of the products available to meet their client’s circumstances at the time.
This includes full details of costs, underwriting considerations, declined lenders and a record of the application details.
Each time the loan details change, the introducer is provided with a PDF document which forms the basis of compliance records and is a valuable sales tool to show to clients.
Walker added:
“Even if a secured loan is not the most suitable product, brokers are able to demonstrate why that is the case. The reports we provide will give brokers added credibility and help them to close the sale, whether it be a loan or a remortgage.
"Without these reports, brokers have little chance of proving they did a thorough job when faced with a FOS complaint. Given the sourcing system and the reports are free to registered introducers, we see no reason why a mortgage broker wouldn’t use them every time when looking at capital raising options for their clients.
"Promise provides this as a free value added service to it’s introducers, whether or not a loan is ultimately offered."
