One of the key tools used by the FSA to monitor Firms is the use of Mystery shopping.
Regulated Firms that are complying with the Mortgage Conduct of Business Rules and whose staff provide appropriate information and ask questions in a timely manner have nothing to fear.
Key failings that were highlighted in research undertaken last year include :
- No oral disclosure of IDD
- Failure to ask about existing secured loans
- Not asking about existing arrangements and early repayment charges applicable.
- Not asking how the capital on an interest-only mortgage is to be repaid
Firms should constantly be reviewing their sales activities as part of their SYSC arrangements. Issues identified as part of the monitoring program need to be fed into the training and development plans for staff.
