QED Risk Services was recently somewhat shocked to see some of the output from law firms, aiming to assist the credit industry understand the 1 October disclosure document requirements. With some of these submissions running into 40-plus pages, we don’t think they have been much help. Indeed, we have received several SOS calls in the past two weeks from brokers saying they’re even more confused after reading some of the legal commentary.
QED Risk Services has, today, released its own guide to the 1 October disclosure requirements. Although aimed primarily at mortgage and finance brokers (making up the bulk of QED’s ACL clients), the guide will be useful to other participants also. The guide is available free-of-charge for QED audit clients or for download on QED’s website for a nominal fee of $40.
However, the simple summary of the requirements are as follows:
- Credit Guide: When to provide it? As soon as it looks like you’re going to provide assistance. What it contains? “This is who I am, this is what I do, this is what I charge, this is who you can complain to.”
- Credit Quote: When to provide it? Only if you charge fee-for-service. What it contains? “This is what I will be doing for you and this is how much I will charge you for that. Please sign here.”
- Credit Proposal Disclosure Document: When to provide it? Only when you are about to suggest or assist with a particular product with a particular provider. What it contains? “These are all the fees involved with the product, both the fees you pay and the others (eg commission) that you don’t directly pay.”
It couldn’t be simpler than that!
At QED Risk Services, we like to think we are making things simpler for the industry as a whole and our clients specifically. We believe we keep the industry as best informed as possible, without weighing you down with legal jargon and unnecessary references to legislation that you are never going to read. But if you are one of the few that is interested in this material and you want more meaty detail, we will be only too happy to provide it.