The Equity Release Council has published a new guide to help its members communicate “clearly and simply” with customers in the later life lending market.
Developed in partnership with ratings agency Fairer Finance, the guide aims to give customers the best chance of understanding products and services and support them to make good financial decisions. It covers the importance of using simple, jargon-free language as well as ensuring that documents are structured and designed in a way that is user friendly.
The new handbook is available to the Council’s membership of more than 750 firms and 1,900 registered individuals, including product providers, regulated financial advisers, solicitors, surveyors and other professionals.
Jim Boyd, CEO of the Equity Release Council, said: “This guide builds on a cast iron commitment, that was enshrined in the very first equity release industry standards more than 30 years ago, to provide customers with fair, simple and complete presentations of information.
“With more features and flexibilities available on the market than ever before, it is vital that customers understand their options, so they are empowered to make informed financial decisions. This will deliver a lasting benefit to both customers and their families.
“Working with Fairer Finance to produce this guide will support our members to bring modern equity release products to life for customers in ways that are accessible, understandable and easy to digest.”
Its publication follows research from the National Literacy Trust which showed that one in six British adults has a reading age of 11 or less and would fall short of the standard required to achieve a grade C English GCSE.
The Equity Release Council said the introduction of the Consumer Duty has placed firms under pressure to prove their customers can understand their communications, while the Financial Ombudsman Service considers the readability of documents when deciding if firms have acted fairly or reasonably in the event of consumer disputes.
James Daley, founder and managing director of Fairer Finance, said:
“It’s fantastic to see the Equity Release Council supporting its members to communicate clearly with their customers.
“Equity release is a complex product and it’s crucial that customers can understand exactly what they’re signing up to. Our guide provides practical advice which will make it easier for lenders and brokers to write, design and structure their documents in a way that is accessible for as many customers as possible.”
