FCA to carry out review on high-cost lending products
The Financial Conduct Authority announced today that it will be doing a review of high-cost short term lending products in the UK, with a specific focus on payday loans. The review, which will likely take place in the first quarter of 2017, comes exactly two years since the introduction of a price cap which was introduced by the FCA in January 2015, directly after taking over from the Office of
Read MoreBehavioural Underwriting and How It Works
Following our recent guide on what is underwriting, we want to dig a little deeper to look at behavioural underwriting and the role it plays for lenders and how they decide whether an applicant will be approved or declined for a loan product. What is behaviour underwriting? Whilst underwriting refers to the steps taken to assess whether a person is eligible for a loan, credit card or mortgage, 'behavioural underwriting'
Read MoreWhat is a Pingtree?
A Pingtree is a type of lead generation technique where a customer's live application is sent to numerous lenders in real-time and eventually the application is sent to the highest bidder. It is less common the guarantor industry but historically has been very popular for the payday loans sector, although its popularity is started to diminish following the introduction of strict regulations imposed by the Financial Conduct Authority. Below is
Read MoreHow Loan Companies Do Underwriting
What is Underwriting? Underwriting refers to the process taken by a lender or finance provider when they review an application and make a final decision on whether the applicant is approved for a loan. The individual or team of people carrying out the process are known as 'underwriters' and they will make their decision based on a series of checks, behaviour and statistical analysis to approve those customers that are
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