While sorting out old paperwork over the New Year, I came across a news item which I had saved. It was from 2012 and came from the main bridging industry trade body, the ASTL, and its initiative to introduce a members’ code of conduct, which it called the Value Charter.
That was five years ago and it is worth looking at the principles that the ASTL expected their members to abide by back then.
• Act in a professional manner, with honesty and integrity in their dealings with customers
• Disclose all costs and fees up front, with no small print or misrepresentation of product offerings
• Not charge non-refundable fees which could be perceived as being excessive
• Not issue terms nor charge fees where they do not expect to lend
• Follow up customer complaints in a professional and speedy manner
• Abide by the rules imposed by relevant regulatory authorities, trade bodies and the ASTL
What is striking is that these principles clearly echo the basis of the TCF structure that lies at the heart of the regulatory structure we have today. The ASTL was ahead of its time and deserves belated congratulations from the viewpoint we now have, just five years on.
Bearing in mind the success of the bridging sector in that period since the principles were announced, they went a long way towards establishing trust in a sector that had been very much a fringe player in the lending market and where, at the time, some lenders definitely did not have the best interests of customers at heart!
Looking back to those days from our now regulated market, it is difficult to imagine that anyone needed to be reminded of their responsibilities to customers back then, yet we are only talking about five years ago.
I, for one, am particularly proud to be part of a sector which has grown and matured so well and whose success has much to do with the foresight and common sense of the ASTL in establishing a pre-regulatory set of principles, which today we take so much for granted.
Narinder Khattoare is CEO of Kuflink Bridging