Trade body FIBA is currently busy campaigning for more transparency in the Short Term Lending market.
19 Sep 2019
It is collecting information around default fees from all its lender partners and aims to publish that information within its lender directory so their brokers members can see it when advising a customer.
Adam Tyler, Executive Chairman at the Financial Intermediary and Brokers Association (FIBA), says so far, he hasn’t found any lender members not treating their customers well.
“Most of the lenders we have are all doing the right thing,” he says. “The right thing would be to work with a customer and make sure they know from the outset what the fees would be if they don’t repay during the time period.
“It was instigated by brokers and lenders coming to us as a Trade Body, saying something needs to be done and asking us to get involved and of course we have.”
Tyler argues that FIBA wants transparency over fees, including lenders being more transparent over the whole raft of other fees, particularly fees borrowers pay when they go over the term.
“Other than the published rates it is the rates that aren’t so visible and we want transparency with that,” he adds. “We’re campaigning to make sure these are more transparent on the outset from the lender so the broker and solicitor can see the fees in an easy to see format.
“We accept lenders have to charge additional fees appropriately to ensure a timely return of funds, but want to make sure they’re more visible.
“It’s making sure it’s open and transparent. I think this is another step in the right direction for our Industry.”