TCF Info News

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TCF Info News - Issue 2

In this issue:

TCF Info Online Survey results
Online Survey Prize Draw winners
TCF Info 'Top Ten' downloads
TCF Info - new content plans
FSA to review sub-prime and lifetime mortgages
Consumers to benefit from PPI refund agreements

TCF online survey results

Thank you to everyone who completed our online survey. This provided valuable information on intermediary progress and understanding of TCF, as well as your views of the TCF Info website. The key message that came out of the survey is that that www.tcfinfo.co.uk is helping intermediaries understand and fulfil their TCF obligations. As promised, here’s a round up of the key findings.

TCF progress and understanding – key results

Do you fully understand what your business needs to do to implement TCF?

89%	Yes
8.5%	Not Sure
2.5%	No

Do you think you will have reached the implementation stage for a substantial part of your business by 31 March 2007?

88%	Yes
12%	Not Sure

How are you approaching TCF in your business?

Across all relevant areas at the same time - 80%

One area at a time – 20%

Anticipated progress towards implementation in key areas by March 31 2007

Financial promotion, Sales & advice, Complaint handling
In the above areas over 90% of respondents expected to meet the deadline in 75-100% of their business; the rest expected to have achieved 50-75% implementation in these areas by that time.

TCF performance incentives
67% expected to meet the deadline in 75-100% of their business; 22% expected to have achieved 50-75% implementation within the deadline and 11% anticipated reaching 0-25% implementation.

TCF management information
73% expected to meet the deadline in 75-100% of their business; 21% expected to have achieved 50-75% within the deadline and 6% expected to reach 0-25% implementation.

Respondents ranked management information (MI) and performance incentives as being the more difficult areas in which to implement TCF.

TCF Info Tips:

If you’re having difficulty implementing TCF in the areas of management information or performance incentives, read the TCF Info website sections MI Tips and tools and (for incentives) Remuneration/Incentives Case Example and MPPI Case Example.

If you’re still unsure of what you need to do to implement TCF in your business read the sections: What is TCF? and TCF Principles Checklist. These offer an overview and will link you to further information.

TCF Info website feedback – key results

89% of respondents found the website easy (49%) or quite easy (40%) to navigate
88% found the site content very useful (61%) or quite useful (27%), with popular areas including Tips and tools, Principles checklist, TCF planning and objectives, Sales and advice, Management information and Complaints
55% of respondents had downloaded or used pages from the site for own-branding or training purposes
78% of respondents have recommended or would recommend the TCF Info website to a colleague
77% of respondents summed up their experience of using www.tcfinfo.co.uk as ‘a very useful resource for helping me understand what I need to do for TCF and get on with it.’
65% of respondents had visited the site three or more times, out of which almost one half were regular visitors
60% of respondents said they thought it would be useful to ask their staff to read the TCF Info website as part of their TCF training – a further 16% said they did this already

We were delighted to receive such highly positive feedback on the website, nevertheless we shall still do all that we can to improve on these scores as we continue to develop www.tcfinfo.co.uk.

TCF survey - prize draw winners

Congratulations to Russell Searle, of Fineants and Sam Hubbard of Mortgage Choice who were our two lucky winners. Your chosen prizes are on their way!

TCF Info - Top Ten downloads – March 2007

Our recently launched MPPI Tips and tools pages are also proving extremely popular.

TCF Info – new content plans

TCF Info will shortly be adding new content on lending into retirement – we’ll send you an email content alert as soon as this item goes live.

FSA to review sub-prime and lifetime mortgages

Following its review of disclosure, advice and selling practices in the prime mortgage market last year, the FSA has announced that in coming months it will focus on areas where the risk of consumer detriment may be higher, such as sub-prime and lifetime mortgages. It will also look at whether consumers are taking out suitable and good value home loans and whether customers are treated fairly over the life of their mortgage, including if they go into arrears.

TCF Info already provides guides, checklists and case studies on disclosure and sales and advice (including MPPI). In due course we will add further content to complement the latest areas of review by the FSA.

FSA 2007 mortgage regime review – read more on the FSA website

Consumers to benefit from PPI refund agreements

An agreement secured by the FSA in collaboration with a number of trade associations and the PPI industry will offer consumers who have bought payment protection insurance (PPI) with a single premium a fairer deal on premium refunds. The FSA has been concerned with the overall fairness and transparency of refund terms – in particular the operation of nil refund terms.

The agreement says that firms should:

not include nil refund terms in contracts with new customers
not apply nil refund terms in contracts with existing customers
contact existing customers if their contracts contain nil refund terms to inform them of how refunds will be dealt with in practice;
treat their customers fairly if they need to reissue the associated loan in order to cancel the PPI
calculate the refund fairly, taking into account their reasonably incurred costs, which may or may not result in a pro-rata refund
include in new policies examples or a table to illustrate how refunds will be calculated to improve transparency.

PPI refund agreements – more detail on the FSA website

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TCF Info News - Issue 1