Designed to provide lenders with outsourced analysis, assessment and referencing of potential borrowers, Reference Point is aimed specifically at helping lenders satisfy their obligations under the MMR when it becomes a reality, without any influence from sales and distribution.
The range of services offered includes a phone-based assessment of the borrower’s financial circumstances where the information is tested against behavioural analysis of Payplan’s existing 70,000+ customer base.
The client information is then validated by means of reference and assessment by a highly qualified team at their Grantham office. The summary of data and evidence provided to the lender is designed to enable an informed decision to be made about the likelihood of the client to default.
According to managing director, John Fairhurst, Reference Point could be a crucial tool to help lenders meet their obligations under the latest MMR proposals.
He said “Our experience of dealing with customers who have debt problems over many years has given us a unique perspective of a customer’s ability to handle their income and expenditure.
“Reference Point can really add a different dimension to the lending decision-making process and still be achieved within a timeframe that does not compromise the ability to turn round applications in a timely fashion.
“Under the latest MMR proposals, it is clear that lenders’ obligations to the FSA will soon have to incorporate a greater guarantee that not only do they have verifiable proof of income on all clients but have also thoroughly vetted the client’s ability and intent to repay. In particular, where the client’s financial situation is of a complex nature, Reference Point will provide the lender with critical information regarding the client’s wider financial circumstances, whilst evidencing the information given.”
