the consumer duty &
treating customer's fairly

All firms regulated by the Financial Conduct Authority (FCA) must pay due regard to the interests of its customers.

 

The Consumer Duty

 

The Duty itself introduced a new ‘Consumer Principle’:

 

Consumer Principle 12 - Requires us to ‘act to deliver good outcomes for retail customers’.

 

This essentially means Evacrest Capital must be proactive in delivering good outcomes in a way that reflects how our customers actually behave. We must ensure we have sufficient understanding of our clientele in order to demonstrate good outcomes and identify and address areas where good outcomes are not being achieved.

 

Cross-Cutting Rules

 

Closely linked to this Consumer Principle are the three cross-cutting rules which outline how we can deliver good outcomes.

 

They require us to:​

• Act in good faith towards all our customers;

• Avoid causing foreseeable harm to our customers; and

• Enable and support our customers to pursue their financial objectives

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The ‘Four Outcomes’

 

The ‘Four Outcomes’ also comprise a large part of the Consumer Duty. These provide further guidance and expectations in four areas which the FCA has identified as key parts of the firm-consumer relationship as outlined below:

 

Product and Services Outcome

This focuses on requiring Evacrest Capital to produce, distribute and continually review our products and services to ensure that they meet the needs and objectives of our clientele.

 

Price and Value Outcome

This outcome aims to ensure that the price our customer pays for the product or service is reasonable compared to the overall benefit you receive.

 

Consumer Understanding Outcome

Customers should be able to understand communications received by Evacrest Capital so that our customers are equipped to make effective and informed decisions. In order to facilitate this outcome, Evacrest Capital will tailor our communications to the specific needs of the customer we are communicating with.

 

Consumer Support Outcome

Customers need to be supported with the products or services provided by Evacrest Capital in order to make effective use of them. This outcome is linked to the consumer understanding outcome. All our customers should be able to both understand communications and act on them without facing unreasonable barriers. This is particularly applicable to vulnerable customers.

 

Treating Customer’s Fairly (TCF) and the Consumer Duty is an integral part of our culture and is embedded in all areas of our business from systems and controls to training, remuneration and staff behaviour; to the information and financial products supplied to our customers, as well as resolving any subsequent issues a customer may have.

 

The principles of TCF are not new and are part of existing regulatory requirements. They aim to raise standards by introducing a series of changes that will benefit consumers and increase their confidence in the financial services industry.

 

As both the Consumer Duty and TCF is not a ‘one-size-fits-all’ concept, Evacrest Capital has put together some information on what TCF and the Consumer Duty means to us including what you can expect from us, how we deliver this, what is expected of you and what to do if you feel you have been treated unfairly.

 

Customers who deal with us should have confidence at each stage of our relationship that:

• The fair treatment of customers is central to our corporate culture;

• Our products and services are designed to meet the needs of specific customer groups and will only be marketed in a way which is consistent with that design;

• Our customers will receive appropriate and “clear, fair and not misleading” information from us both during and after the sales process and, where you enter a finance agreement, including through the life of that agreement;

• Where we make a product recommendation to you, this will be suitable and take due account of your circumstances;

• Where finance is arranged through us, the agreement will operate as we have led you to expect - Our service will be of a continual high standard and also meet your expectations; and

• We won’t put unreasonable barriers in your way should you wish to complain, change your finance arrangements or end our relationship.

 

These commitments go above and beyond our compliance with applicable legislative requirements (including the rules of the Financial Conduct Authority) because we recognise that, even where we have complied with the detailed rules, we may still not have delivered the outcome which we led you to believe you would get, or which you had the right to expect.

 

We also seek to apply the same standards of integrity and even-handedness in our dealings with all our business partners.

 

TCF Outcomes

 

The FCA has outlined six outcomes as part of TCF. These include:

 

Outcome 1

Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.

 

Outcome 2

Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.

 

Outcome 3

Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.

 

Outcome 4

Where consumers receive advice, the advice is suitable and takes account of their circumstances.

 

Outcome 5

Consumers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and as they have been led to expect.

 

Outcome 6

Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

 

Evacrest Capital takes the core message of honesty, integrity and fairness and applies this to any customer situation.

 

Evacrest Capital ensures there are appropriate processes in place to make sure the Consumer Duty is adhered to and TCF is delivered.

 

Monitoring Outcomes

 

Evacrest Capital have a system in place to review TCF on a regular basis, identifying any shortcomings. These are important forms of Management Information (MI) and MI is a key part of the monitoring process that the FCA expects to be followed.

 

Under the Consumer Duty Evacrest Capital will also be expected to assess, test and monitor the outcomes their customers are receiving and identify problem areas. These outcomes will then need to be assessed to ensure that they are consistent with the new Consumer Duty. This process is data driven and therefore will require Evacrest Capital to collect customer information regularly.

 

You can be assured that:

• Within the broad range of finance products to which we have access to we will either find one which meets your needs, or we will not be able to provide finance options for you;

• Our products are fairly priced; accurately and clearly described; and marketed to highlight the costs of borrowing whilst also giving equal prominence to both the risks and benefits;

• We won’t put you under pressure to take out finance and are always happy to provide you with further information and guidance, including from independent sources;

• Our finance provider’s systems and procedures for assessing creditworthiness are tried and tested, robust and thorough and will focus as much on the risk to you that you may not be able to afford or sustain payments as on the risk to us that you might not be able to make them;

• Our finance providers won’t lend you more than is necessary to finance your transaction; over an unnecessarily long term; or at a higher rate of interest than is appropriate;

• We will always treat you with respect and consideration should you experience any payment difficulties and any formal action by a finance provider will only be taken where all other avenues to come to an acceptable arrangement with you have been exhausted;

• Your personal information will be treated confidentially and in accordance with data protection legislation;

• Under strict controls we may share credit data with credit reference agencies to improve the quality of our decisions and to reduce the risk of you becoming over-committed.

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What You Can Expect From Us

 

TCF and the Consumer Duty is an integral part of Evacrest Capitals’ business culture and we are continuously working to ensure customers are treated fairly.

 

As a result, you can expect the following services when dealing with us:

• Clear, fair and transparent pricing

• Continual monitoring of competitive market to ensure consumers achieve value for money

• Fair and quality advice from our experienced sales team based on customer needs, priorities and circumstances

• Clear and transparent information regarding our fees in our Commission Disclosure Document

• Continual advice and support throughout all stages of the product life-cycle

• Clear and jargon free information on the product with adequate opportunity for customers to ask questions

• After-sales information and services including reminders, product updates, help and confidential advice

• Full complaints handling procedure

 

How We Work To Deliver This

 

TCF and the Consumer Duty is a continuous process and we’re implementing multiple processes throughout the business to ensure we comply.

These include:

• Continual investment in internal systems to improve communication and processes

• Robust training and competence programmes to support sales staff and ensure they understand the market

• Giving customers access to clear and jargon free information on the products and services provided

• Regular internal audits by senior management to measure and monitoring TCF and Consumer Duty performance

• Undertaking gap analysis to highlight areas where improvements can be made

• Regular audit of telephone and electronic correspondence to ensure quality of advice

• Collecting qualitative input from customers and staff to develop a range of metrics to measure progress and monitor performance

• Regularly reviewing FCA material and attending workshops and conferences

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What Is Expected Of You?

 

In order to deliver the best possible service, we rely on you (our Customer) to also play your part.

 

In return, we ask that you:

• Engage with us properly and provide us with accurate and complete information when you apply for finance and let us know of any changes in your circumstances which might affect your application

• Raise questions if you are uncertain about any aspect of the product or service

• Ensure you understand the commitment you are making and the terms and conditions on which the finance product is being offered to you and, in particular, satisfy yourself that you can afford the payments;

• Read advertisements and other material carefully

• Read any suitability letter and ensure that it properly reflects the discussion

• Use cooling off periods to consider whether to go ahead

• Inform us of any changes we need to know about in order to administer your agreement properly;

• Review your borrowing and other financial commitments on a regular basis and consider taking further advice when circumstances change - If you are having difficulty managing your contractual payments or expect to face difficulty in the future, contact us so that we can discuss your situation and provide help where we can.

• Acknowledge that some financial products or services being provided may involve market risk for the buyer, such as stock market movements and interest rate rises

• Complain to us if you perceive unfair treatment and give us the opportunity to resolve your complaint in a timely manner

 

Our Process

 

Treating customers fairly is central to the company culture within Evacrest Capital and to this end, the process of buying a vehicle on finance has been refined to ensure that each and every customer gets the deal that is best suited to them in terms of:

 

• The financial product offered

• The repayment is within their desired budget

 

To ensure that our client’s credit file is not adversely affected by numerous credit searches, an initial ‘soft’ credit search is completed to ascertain the most appropriate finance provider that best suits the applicant’s current financial circumstances.

 

Once it has been established that our client meets a finance provider‘s lending criteria the application is sent to the finance provider our system feels is most likely to accept the application; and also to the finance provider who can offer our client the most appropriate facility in terms of meeting their monthly repayment expectation and maximum loan duration.

 

Income and Expenditure Evaluation

 

• We will validate income information to ensure our lenders have the information to calculate a sensible maximum lend the customer can afford.

• All proofs will be checked by our client advisor team to validate the income proof is a valid form.

• We will question the customer on our pre/validation calls to ensure the customer feels they can comfortably afford the monthly repayment.

 

Communication

 

• All communication templates and scripts will be reviewed for compliance purposes

• All calls will be recorded for compliance and training purposes

• Compliance will be involved in subsequent disclosures involving our products and services.

• We continually invite feedback from our clients to ensure that our services meet their needs and expectations

 

Training

 

• A new individual conduct rule under the Consumer Duty was introduced – Individual Conduct Rule 6, to reflect the new, higher standard of the Consumer Duty. It requires all Evacrest Capital staff to ‘act to deliver good outcomes for retail customers’

• At least annually, all employees will be required to undertake TCF and Consumer Duty training. All new hires are individually mentored and need to complete TCF and Consumer Duty training within 30 days of their hire date.

• We will establish training materials for staff explaining new products and services.

 

Products

 

• We will review all new proposals for products and services, prior to implementation, for TCF and Consumer Duty compliance.

• We will ensure that our finance provider’s criterion are updated on our system to ensure that customers are not being sent to finance providers where their circumstances won’t fit the criteria, therefore avoiding unnecessary searches.

 

Leadership

 

• On at least a monthly basis we review and discuss compliance with both TCF outcomes and the Consumer Duty outcomes.

• We regularly, at least annually, remind staff in writing of TCF and the Consumer Duty expectations.

• We will monitor compliance on a weekly basis, a compliance monitoring report will be submitted to the board each month

 

Complaints

 

• Monthly we will review the customer complaints log.

• If there are any complaints impacting the Consumer Duty and TCF, a complete review will be completed to determine the root cause issue and identify any necessary procedural changes and/or staff training needs required to fully address these issues

 

Marketing

 

• All marketing will be clear, fair and not misleading

• All representations will be kept accurate and up to date to ensure consumer’s expectations are managed

 

Remuneration

 

• Should any member of staff found to not act according to our company procedure and policy, commission may be deducted and a disciplinary hearing will take place

• Staff must not choose specific finance providers based on commission received, but at all times must act in the customers’ best interests and provide them with the best rate possible

• To ensure fairness to our customers all lenders will have the same amount of commission applied as a flat rate fee

 

Monitoring and Compliance

 

All staff are expected to comply with our policy, and any member found not to will be subject to a disciplinary hearing and subsequent action may be taken. Staff will be monitored and audits carried out to ensure that this policy is fully complied with.

 

Review

 

This policy will be reviewed on at least an annual basis. Any updates will be reissued to our team, along with any training to ensure they fully understand the changes that have been made. Any new changes will be updated on this public policy.

 

 

What To Do If You Feel You’ve Received Unfair Treatment

 

A critical element of the Consumer Duty and TCF is how we handle customer complaints.

 

It is our aim to provide a very high standard of service to every client but on occasion lamentably things do go wrong. If you have a complaint about any aspect of our service, we would like to apologise and ask for you to contact us so we can resolve your issue.

 

To help us investigate and resolve your concerns as quickly as possible, please contact our Client Complaints Team via this email complaints@evacrestcapital.co.uk who will endeavour to address your complaint as quickly as possible.

 

A full explanation of how we will deal with your complaints and what to do if you think your complaint has not been resolved to your satisfaction is in our Complaints Policy and Procedure.

 

If you have a regulated consumer contract with us and are not satisfied with our final response, you may be eligible to refer the matter to the Financial Ombudsman Service. You must do this within six months of our final response and we will also provide you with a copy of the Financial Ombudsman Service’s explanatory leaflet when we send our final response.

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