Friday, January 07, 2011
Free financial compliance tool
ITC Compliance has launched a new, free tool to help dealers ensure they do not mis-sell finance products.
Matt Dyer, ITC’s chief executive, says the real threat to dealers in the future comes mainly from the Financial Ombudsman Service, not the Office of Fair Trading.
“The work done by finance companies means it is unlikely that a dealer would breach OFT rules.
"But the new Consumer Credit Directive coming into effect on January 31 makes it imperative that dealers have, and can demonstrate, an audit trail to prove that they are not mis-selling finance.
"Our free software provides exactly that in a format that can be easily integrated into the sales process.”
ITC research shows that two groups are most at risk: franchised dealers selling other brands of finance in addition to that provided by their manufacturer and independent, non-franchised used car retailers.
“The lack of an audit trail leaves the door wide open for unscrupulous buyers, claims management companies and even disgruntled ex-employees to cause mischief by alleging mis-selling.
"Complaints management companies are looking for ‘the next big thing’ after PPI reclaims and if dealers aren’t seen to be fully compliant with the new directive then they could find themselves having to pay £500 per claim in ombudsman fees, even if no grounds for complaint are found.”
Simon Barrass, group F & I director at JCT600, said: "The system ticks all the boxes for us and is a vital added safety net; especially because the financial ombudsman deals with consumer credit complaints.
"As a group we deal with 14 different finance houses all of which have provided us with great CCD systems but obviously none of them can provide us with an audit trail showing how we arrived at the decision to propose the customer to them. In my opinion ITC's initiative to provide this free software can only be good for dealers."
To register for your free copy of the ITC compliance CCD software go to www.itccompliance.co.uk/?page=ccd
DATED: 07.01.11
FEED: AM
