Press
Mortgage Solutions 25th Sept 2006
AFB pledges to raise lending standards
The official launch of the Association of Finance Brokers (AFB) last week came with a warning from its chairman that it was not a good day for those who thought 'cowboy' practices were acceptable.
The new trade body will lobby politicians, regulators and policy makers in the UK and Europe on behalf of secured loan brokers.
John Gummer MP, chairman of the AFB, argued there was a real problem with responsible lending, with most of the public just wanting the money or the deal. He said: "It is not true people are ready to read 500 pages. We have got to find the mechanism to enable the customer to make a sensible decision."
Gummer said the sister trade body to the Association of Mortgage Intermediaries had a major policy plan underway, and with its payment protection insurance factsheet, was helping the Financial Ombudsman Service and the Financial Services Authority (FSA) to make proper judgments and decisions to benefit everyone.
Gummer revealed it had argued with the FSA over the need to prove treating customers fairly, which he said suggested advisers were treating customers unfairly if they did not.
James Carter, IFA at Virtue Financial, described the new trade body as a good idea. He said: "In the past, there have been quite a few brokers who have taken advantage of clients in this sector. Anything that adds credibility to this sector is important."