Dunfermline Housing Finance warns of FCA swap deadline

A Financial Conduct Authority-led initiative requires many RSLs to submit a request for a review of arrangements by 31 March if automatic redress is to be an option. After this date, any successful review of terms would be subject to negotiation. Most lenders active in the RSL sector have signed up to the review process but substantial numbers of RSLs have yet to respond.

Gordon Campbell, a director with DHF, said: “We are currently working with around 20 Scottish RSLs where this date could be potentially very important indeed.

While we can still seek a review and ultimately potential redress of overcharging or mis-selling after 31 March, for certain types of clients, it will make life a lot harder and lower the chances of success if the date is missed.

“We are looking at fixed rate products to check for both hidden over-charges but also to ensure more complex products sold were ‘fit for purpose’ and proper documentation was provided. Many RSLs could qualify for automatic redress in relation to the latter – but only if a review is instructed by the end of this month. Otherwise, even where an issue can be proven, it is down to case by case negotiation. To date a number of RSLs have received substantial compensation and some have had arrangements set aside and replaced with more favourable terms.”

RSLs who have yet to subscribe have until Tuesday to maximise their chances of success. But Mr Campbell was also keen to point out the review process continues after this date.

He added: “The date is important for certain types of clients with certain products. We will still be pursuing claims beyond the date but suffice to say the most risk free way of dealing with the issue is to get the review request in by Tuesday.”

DHF is a joint venture between leading RSL Finance consultancies, HRC Consultants and Campbell Thompson Associates. Their key aim is to maximise the effectiveness of Private Finance for RSLs.