Affordability
These include CONC 5.4.2R:
(1) In giving explanations or advice, or in making recommendations, a firm must pay due regard to the customer’s needs and circumstances.
(2) In complying with (1) a firm must pay due regard to whether the credit product is affordable and whether there are any factors that the firm knows, or reasonably ought to know, that may make the product unsuitable for that customer.
DealerZone has been designed with CONC 5.4 in mind and includes:
Finally, customers are asked before submission to confirm that the loan they are applying for is, in their assessment, affordable for them. They must give details of any reasons why the loan may not be affordable throughout the duration of the loan.
If they select this option, a free format box allows them to give details that will be transferred to our underwriters. Please note that all applications of this nature will be referred to manual underwriting and will not go through the automated decision systems.
We also ask that you not use this as a general notes section. It is specifically for capturing information about affordability and will only appear if the customer selects to say they believe the loan may not be affordable.
If you become aware of this information after your customer has been proposed, you should contact our underwriting team as soon as possible.
More information on the role and responsibility that Evolution and our dealers have in assessing customer affordability can be found in CONC 5.4.