In a distinctly low-key announcement Direct Line pulled its entire range of mortgage products last week. Its website shows no sign that the products have been pulled and merely states: ‘Apologies, our mortgage section is currently unavailable due to essential work. We apologise for any inconvenience caused.’
Lesley Ferguson, PR manager for Direct Line, said: “Our existing system couldn’t cope with the new FSA’s requirements for lenders to provide Key Facts Illustrations (KFIs) so instead of frustrating customers we have closed the door for new business but will be FSA-compliant on our new systems in November.”
Although Direct Line does not deal with intermediaries there is concern that its parent company Royal Bank of Scotland and subsidiary lenders NatWest, The One Account and First Active, could also be experiencing difficulties in producing accurate KFIs.
But Anna Wharton, press officer for The One Account and First Active, said: “We are ready for FSA regulation and will be KFI-compliant by 31 October.”
A spokesperson at RBS said it has a separate IT system to Direct Line and would not be suffering the same difficulties as its subsidiary.
