The CML said the FCA’s proposal of “writing for the consumer first, and then ensuring communications were compliant”, was a “great challenge” although a number of lenders are already rising to meet this.
In an article written by Sue Anderson, CML head of member and external relations (pictured), Anderson looked at the requirements set out by the regulator in its recent discussion paper, Smarter Consumer Communications, which encourages firms to explore the barriers to good communications and look at how this can be improved.
However, with mortgage lenders already struggling to deliver an “enormous list of essential changes” such as the upcoming Mortgage Credit Directive rules, Anderson added that such an initiative could easily fall to the bottom of lenders’ “already crowded work lists”.
Anderson said while she praised the FCA’s creative approach, the regulator needed to be aware that firms would be concerned that the information they were giving consumers now would still satisfy the FCA in the future, as well the Financial Ombudsman Service and the courts.
She added: “There’s also the possibility that as a large organisation with multiple strands, the FCA’s own culture may not yet be entirely aligned to the message – we still sometimes hear some lenders telling us that their supervisors have a tendency to adopt a “tick the box first, think creatively second” approach.
“More subtly, let’s also recognise that the regulator is extending an iron hand in a velvet glove. The subtext is very much that engaging with this issue isn’t optional.”
