Not many people like change and, as a result, they try to delay it – or, at least, delay accepting it – for as long as possible. This can certainly be said of the secured loans market at the moment.
Unfortunately, there are a number of firms which think that just because the Financial Conduct Authority has yet to publish its official rules and guidance for the secured loan sector – and isn’t expected to do so for some time – there is no need to make any changes to their businesses.
What these firms fail to realise is that the FCA will apply the OFT guidance and CCA rules and expect firms to demonstrate compliance in a similar manner to that seen in the mortgage sector.
You therefore need to make sure compliance is top of your list of priorities now. And the best way of doing this is to partner with a firm which can offer you the systems, controls, and products to help you.
The FCA will want to see proof you are treating your customers fairly. If you fail to make the right preparations to improve your compliance now you could find yourself in trouble later on.