Legislation and the Secured Loans Market

Introduction

The Secured Loans market is often referred to as 'Unregulated' and this has led to organisations taking a rather laissez faire attitude to creating advertisements as part of their marketing campaigns? This article shows that regulation within the secured loans industry is very much alive. It will also briefly discuss the various Parliamentary Acts that incorporate legislation affecting the Secured Loans or Second Charges market and advertising. The target readership for the article is either those involved in the Finance Industry and marketing of specifically secured loans, or members of the public with a general interest in Consumer Credit legislation and advertising regulations which may affect them.

The Office of Fair Trading (OFT)

The Office of Fair Trading, or O.F.T as it is more commonly referred to, is responsible for a number of key areas with the ultimate aim of protecting the consumer. It has three main purposes. These are the enforcement of Competition and Consumer Protection rules, the analysis of markets to make sure they are working and communication to consumers, businesses and the government.

In terms of Secured Loans there are a number of areas the O.F.T deals with that affect the way that operators in the market promote themselves. The first of these is by administering Consumer Credit Licenses. With the rapid growth in people taking out credit in the early 1970s an act of parliament was passed in 1974 called the Consumer Credit Act and it is under this at that Consumer Credit Licences are granted. If an entity advertises promotes or brokers Secured Loans it must have a Category C Consumer Credit License. On application the O.F.T will investigate all people connected to the business applying to ensure that they are all people worthy of issuing or guiding people to enter into credit. There is a general misconception in the market that the Consumer Credit License is only required if the Secured Loans Company offers loans less than 25,000, but the Act clearly states that a Category C license is required for businesses that provide credit of ANY amount secured on land.

Other areas the O.F.T deal with that affects secured loans are there enforcement of other elements of the 1974 Act and also the updates to the Act which occurred in 2004 - these are the 'Agreements Amendment', 'Disclosure of Information' and 'Early Settlement' Consumer Credit Acts.

For secured loans these act govern a number of things. The first of which is the way that organisations can advertise secured loans. The Acts have rules governing what can and cannot be said in an advertisement and also have stipulation over certain words that have to appear in the advertisement. For example the words "YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT" probably have to appear on most Secured Loans advertisements. The Acts also stipulate that the Annual Percentage Rate (APR) must appear on Credit advertising and also given rules give its calculation (commonly known as the TTC calculation or total charge for credit).

There is a growing momentum in the Mortgage and Secured loans industry that at some time secured loans will be regulated by the F.S.A. With the already increased workload of the F.S.A it is more likely that an 'official' recommendation for their regulation by the F.S.A is more likely to come from the O.F.T

Financial Services Authority (FSA)

The Financial Services Authority, or F.S.A as it is more commonly know, is responsible for enforcing the rules of the Financial Services and Markets Act 2000. Contrary to popular belief it is actually a non-government independent body and is financed solely from the income it receives from the very organisations it legislates. Although it is accountable to Treasury Ministers it is operationally independent.

In terms of legislation affecting Secured Loans the F.S.A regulates activities in relation to payment protection insurance (P.P.I). So if a business helps customers buy or claim on payment protection insurance it is highly likely it will need to apply to the F.S.A to be regulated. In the Secured Loans market whether you need to be legislated by the F.S.A largely depends on your involvement in P.P.I. If an organisation simply acts as an introducer it is quite likely it does not need to be regulated, however it is always advisable to seek legal advice.

Another area the F.S.A deals in that may affect Secured Loans providers is their regulation of Mortgages. The FSMA states that if an authorised lender gets second charge loans business from an unauthorised lender then their advertisements must be approved by the F.S.A approved firm.

Finance Industry Standards Institute (FISA)

The Finance Industry Standards Institute (FISA) is a self-governing body set up independently by the industry to govern itself in the Secured Loans market. An annual subscription fee from its members funds FISA. It publishes a Code of Conduct for its Members that cover the standards it requires in advertisements. In essence these are guidelines that give the requirements of the O.F.T specifically for the Secured Loans sector. FISA also publishes a disciplinary procedure and warns in its documentation that it will enforce legislation on non-members, in the first instance by contacting the offending organisation and in the second instance by informing the relevant regulatory body.

FISA also conducts training courses every month or so. These cover the legislative requirements of being involved in the Second Charge sector. In the future the organisation plans to have three levels of 'qualification', these will be Foundation, Associate and Member, but it is waiting on developments in the O.F.T and F.S.A before it does this. One supposes whether this happens will also be influenced by the level of regulation that those two bodies impose on the Secured Loans sector.

Information Commissioners Office (ICO)

The Information Commissioners Office (ICO) enforces the requirements of the Data Protection Act (1998). Given that all businesses in the secured loans sector will at some time hold information about individuals they must be registered as a Data Controller with the ICO. In summary, the Data Protection Act ensures that all data kept on an individual is accurate, fairly and lawfully processed, adequate relevant and not excessive, used for limited purposes, not sent overseas and is kept securely.

Other Regulatory Bodies and Secured Loans

Although the following organisations do not have a direct power or control over the secured loans market it is worthwhile mentioning them, not only for reasons of clarity, but also, as it is possible there will be changes in legislation, these organisations may later have more influence over the secured loans sector.

The Consumer Credit Trade Association (CCTA) is another independent body, but differs from FISA in that it deals with the whole Consumer Credit market. It also offers training courses, publishes regular newsletters and actively lobbies the Government about consumer credit related issues. In a world where we assume taking out credit is a relatively new phenomenon it is useful to note that the CCTA was founded well over a hundred years ago in 1891.

The Intermediary Mortgage Lenders Association (IMLA) is an independent body that represents the views and interests of institutions in the generation of mortgage business through Intermediaries.

The Council of Mortgage Lenders (CML) is yet another self-governed body operating in the Mortgage Industry. In a similar fashion to the CCTA it is also involved with government with legislative issues, issues policy guidelines. It is also renowned for produces statistics about the UK lending market covering, amongst other things, arrears and repossessions, the number of mortgages being taken out and specifics like the number of buy to let mortgages being taken out.

To finish this section there is one more independent organisation called the Association of Mortgage Intermediaries (AMI) who act as the trade body for mortgage intermediaries.

Conclusion

Although the Secured Loans sector is commonly referred to as 'unregulated' this document has hopefully shown there is still a lot of regulation (both official and un-official) that affects and encompasses the secured loans sector. In the finance area where the UK has a reputation for being the most regulated in Europe it is only a matter of time before secured loans come under the umbrella of the FSA. It is believed that instruction for the FSA to take control of the secured loans market is more likely to come from the treasury rather than the FSA itself. What is certain is that the secured loans market will become more legislated.

Adrian Hudson has a background in I.T. Management. In 1997, after recognising a gap in the market he formed the I.T Consultancy specialising in Finance called Sprint Soft Ltd. Earlier this year he founded the secured loans specialist http://www.we-introduce-you.co.uk. Adrian blogs about his day-to-day life, personal finance and the secured loans industry at http://www.we-introduce-you.co.uk/theintroducer/Voice Broadcasting
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Leadership Secrets for Great Meetings

Ineffective and poorly- run meetings serve as one of the top talent and time wasters. Develop the skill to run a tight, highly-focused meeting with just the right number and kind of people in attendance and your stature as a leader rises.

First, figure out what is the specific outcome of the meeting and start with that as the written objective. Give your meeting a name that even states the objective. Next, ask yourself who has the greatest information or talent and should be at the meeting. Figure the personnel cost for the meeting. For example, if an employee has an average annual salary of $50,000, the per hour cost for that one person is $96 per hour. (This includes salary plus benefits and general company overhead). You can extrapolate other salary costs from this base. Here are other tips to make this meeting move from average to great:

(1) Put a specific time frame on the meeting and start on time.

If people show up late, create some funbut telling response for tardiness. In one organization, the latecomer has to sing to everyone. In another, the latecomer buys cokes for everyone. In another, the latecomer is given a scarlet L on a tent card. In Saturn Automotive plant meetings, if the door is closed, you are late and an alarm rings if you try to enter.

(2) Develop good facilitation skills, making sure everyone participates and is heard from

(3) Summarize questions, outcomes, actions. Summarize frequently

(4) Have the names of who should attend on the agenda which is sent out at least 48 hours in advance.

(5) Create a parking lot notebook. If an issue is brought up that is not on the agenda but might be addressed at another time, write it down so it can be tackled.

(6) Consider a stand-up meeting. To move people through quickly, have no chairs in the meeting room. Its amazing how quickly people can get work done when there is no place to sit.

(7) At the end of the meeting, and as a way of staying focused and practicing continuous improvement of meeting management, tell the group the personnel cost of the meeting and if the money could have been spent more wisely in another format?

(8) Make sure a summary of the meeting is sent to the participants along with any action items or next steps, a due date, and the person or group to which they are assigned.

(9) To break a meeting routine, you might consider beginning by asking people to come prepared to tell the group about some person whom they want to acknowledge for outstanding service. Starting off by highlighting positive performanceparticularly of unsung employeesis a powerful gesture.

(10) Dont forget to say thank you. Time is the only true non-renewable, irreplaceable resource. When people give you their time, they gave you a piece of their lives.

For more information on leadership ideas, communication skills, or work life balance practices, click on Leadership and read more by Eileen McDargh, an expert in work/life leadership issues.

Eileen McDargh is a powerful keynote speaker, recognized work/life leadership expert, and award winning author. Discover your organizational and personal resiliency factor with this free online survey http://www.eileenmcdargh.com/res_free_surveys.html Call toll free 877-477-4718Live Mortgage Leads
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Home Improvements Turn Average Homes into Dreams Come True

TAMPA, FL If youre thinking about taking out a home improvement loan, there are several options to consider. First and foremost, your mortgage consultant needs to know why you want a home improvement loan. Here are some factors to take into consideration.

How long have you been in the home?
Will the improvements increase the property value?
Are you making improvements to increase energy efficiency?
Will improvements be made in one fell swoop, or in stages?
What is the current outstanding balance on your mortgage?
What is the appraised value of the home?
How much will the improvements cost?
What improvements will be tax deductible?
Do you have other revolving debt that you would like to pay off at the same time?
Are you making improvements because you plan to sell the property?

The New Tract Home Blues

Buyers of newly-built homes are often tapped out after making the initial down payment and closing costs, including upgrades to amenities and the inevitable need for new furniture. Shortly thereafter, they realize theyd like to make additional improvements to really have the home of their dreams.

If youre planning on putting down roots (pardon the pun), landscaping may be in order. The developer may have been kind enough to make the front yard a perky green, but if the back yard is a disturbing brown color sparse with weeds, you may be entertaining the vision of a pool or deck.

Look into the option of a Home Improvement Loan with a fixed interest rate as a 2nd Trust Deed. This type of loan does not require you to have equity built up in the existing mortgage. The maximum loan amount could go as high as 125% of the current appraised value of the home, and you can make the improvements yourself or go the extra mile and hire a contractor if the job requires architectural design, permits and inspections.


The Major Overhaul

If you have built up equity in your home and are geared up for some major renovation, the Home Equity Line of Credit (HELOC) is probably your best bet. This adjustable loan allows you to use your equity as a line of credit, so if you have improvements that are phased in over time you can simply write a check when you need to pay a bill.

Its like a having a credit card with a much lower financing rate. In fact, the HELOC can be used for any reason at all even paying off that credit card debt. In most cases, this action turns that revolving debt payment into a tax deductible payment with a lower interest rate. The HELOC is generally a 2nd Trust Deed, unless it is used to pay off and replace the 1st Trust Deed.

A construction loan is an alternative to the HELOC for borrowers who dont want to use or dont have equity, and this type of financing can be used for construction on an existing dwelling. The lender will ask a lot more questions about what the borrower wants to do with the money, and the home owner will need architectural designs, permits and a licensed general contractor on board.

Construction loans are short-term loans that usually require interest-only payments until completion of construction, but the balance is due when construction is done. Most often, that is managed up front by setting up construction-to-perm financing. In this scenario, the loan is automatically rolled over into permanent financing at a fixed rate when construction is complete, and a rate-lock agreement can be purchased to carry the borrower through that period of construction.

Another option depending on the value of your home and local loan amount limitations is the FHA 203(k) Program. This financing is designed for the purchase or refinance and rehabilitation of properties that meet FHA guidelines. This is worth looking into if you need to bring a property up to compliance standards, finance eligible energy efficient improvements, or turn a single-family owner occupied dwelling into a duplex to accommodate Mom or Dad!

Just a Facelift, Please!

If you want to sell your home and you simply want to improve the curb appeal, it makes sense to go with a HELOC. Make sure you are aware of the current market value of homes in your area to make sure youre not going over the limit on the fair market value of your home. Youll want to get a return on your investment!

If youve had your home on the market too long and have not been able to sell, you might want to make some changes to give it a fresh new look and bring back the passion you once had for your home. Your mortgage consultant will help you weigh out your options for financing based on your outstanding mortgage balance, income and credit score.

Regardless of your reason for home improvement, make sure you share your goals with your mortgage consultant. He or she can walk you through the various loan options and confer with your tax advisor to make sure youre getting the best deal possible.

Leah Ross is affiliated with AmeriFirst Home Mortgage, a Licensed Mortgage Lender, State of Florida, Office of Financial Regulation. For free consultation and more information about mortgage loan programs, call Leah Ross at 813-643-8430 or vist http://www.amerifirstflorida.com.Exclusive Mortgage Leads
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MLM Training - Are You Getting Any?

MLM company training typically incorporates lots of hype, with claims of superiority, extravagant growth, and other big language. That type of training is typically not very helpful. A large percentage of people involved in network marketing have no experience with any type of promotion or marketing. This type of training usually leads the average person to frustration and possible failure.

Are you a salesperson?

The vast majority of people who get into network marketing are not salespeople, nor do they wish to become one! Yet the training people get from their uplines goes something like this: Now that youve joined, get your entire family and all your friends to join you! Go out there and talk to everyone within three feet! Get out of your comfort zone! Get 100 nos! Make 50 dials a day! This type of training tries to turn trainees into salespeople. In network marketing, this leads to frustration and discomfort because people dont like to sell or be sold, especially by their friends and family.

Heres the funny thing: In my previous life, I was in sales! I sold everything from garbage services to advertising, and I was successful, too. When I got into network marketing, I thought, No problem, piece of cake, I can sell anyone anything; this will be easy. Guess what? It was hard. I did everything my upline told me to do, and I still didnt have success. When I asked what else I could do, I was told to just keep talking to people and not to quit. What kind of training is that?

Do you have a simple, duplicable system?

In network marketing you need a system for promotion, presentation, and follow-up that is simple and duplicablea system the average secretary, plumber, teacher, mechanic, retiree, salesperson, or CEO can follow. A system thats rejection-free. For you to have success, a good upline needs a training system in place to teach people about people. Network marketing is a teaching and mentoring business, and in order to be successful, you must understand people and what makes them tick. Most MLM upline training consists of telling people its a numbers game. Have you ever been treated like a number? Did you like it? How did it make you feel? Is that the way you want to make people feel? Its not a numbers gameits about people, and people are not numbers.

Most MLM companies dont provide training thats worth a hill of beans. Typically, it consists of a lot of motivation and you can do it hype. Thats okay. Believe it or not, the companys job isnt to train the distributors in the field; their job is to manufacture and ship the products and then send us our checks. Thats why its so important to find an upline or team that has a system already in place, a system that you can plug into for some good meat-and-potatoes training and that has great support and makes you feel part of a team, not alone on an island, struggling to survive. When you find a MLM team with good, solid training in place, it will be magic!

Suzanne Fulford is a successful network marketer and stay at home mother of two. Suzanne believes everyone with the desire to become successful in network marketing can do so with the proper skills, mentoring and support. It is her goal to help as many people as possible attain the proper skills and mentor them to success. Download her free eBook at http://www.TheMLMmom.com or visit http://www.NetworkMarketingHotspot.com for more free tips and training. Live Mortgage Leads
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Giving Your Customers What They Want: Increase Revenues Through Product Recommendations

Right This Way, Please

When youre sandal shopping at your favorite Shoe Emporium, you may be drawn to the boot display across the aisle. Although you didnt come in looking for boots, you find yourself checking out with both beach sandals and ankle boots. This is the concept behind using product recommendations on your website: youre leading visitors step by step through your store. Your goal is to sell them the product they initially came to you for, but also to strategically direct their shopping session to sell them additional items.

Whats the Advantage?

Why should you, as a retailer, be making product recommendations? Several reasons:

You increase online sales. You gain cross-selling and up-selling opportunities.

Understanding what your customers want and predicting their behavior allows you to tailor your suggestions, and match them with products that theyre likely to buy.

Bring traffic to under populated areas of your website.

Gain exposure for your overall product catalog, and move products that were previously low in sales.

How Do Conversion Services Work?

Conversion solution http://CleverSet.com studies click streams, or the patterns by which shoppers explore websites. They track the order in which customers look at pages and how much time they spend on each page, and offer product recommendations based on individual customer behavior. Says CleverSet CEO, Todd Humphrey, We not only [look at] what happened in the past, but we actually anticipate where a shopper is going and make targeted recommendations by understanding what a visitor is doing now and what theyre going to do next.

Do I Need Outside Help?

That depends on the size of your product catalog. If you sell twenty or thirty different products, you can probably put together your own recommendation solution. With a smaller selection, your visitors have a better chance of being exposed to all of your various products. However, if you sell over a hundred different products, you could really benefit from the available technology, to understand your customers and offer them customized recommendations. Enthuses Humphrey, What were seeing is an increase of between ten percent and thirty-five percent, in terms of conversion rates!

Chris Malta and Robin Cowie of http://WorldwideBrands.com are the Writers and Hosts of The Entrepreneur Magazine EBiz and Product Sourcing Radio Shows. http://www.worldwidebrands.com/EMRinfo for more FREE eBiz info from Entrepreneur Magazine Radio!Voice Broadcasting
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