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August 2017

Welcome!

AGENDA

• About Shawbrook Bank

• Why is Credit Important to You?

• Features and Benefits

•Credit Products

• How the Flexi-Loan Works

• Customer Timeline

• Underwriting Guide

• Shawbrook App (Set Up & Demo)

• E-Signature (Set Up & Demo)

• Legal and compliance

• Shawbrook Test

About Shawbrook Bank

• We are a British bank, specialising in the savings and lending markets where we have solid experience and knowledge We offer competitive rates of interest on personal and business savings and lend quickly and efficiently to SMEs and individuals. We have lent over £4.1bn* to SMEs and consumers and raised more than £3.9bn in deposits* since our launch in October 2011. *(as at 30 December 2016)

• We offer our customers a straightforward, no-nonsense alternative to high street banks, combining traditional banking values with a modern approach.

• Shawbrook Bank was listed on the London Stock Exchange in April 2015 and Shawbrook Group plc are now a FTSE 250 company.

• Shawbrook’s consumer lending team works with many national and regional home improvement suppliers to offer their customers’ finance. Our human approach to lending ensures that our customers and partners have a friendly team on hand to speak to. While Shawbrook is a relatively new bank, the consumer lending team have a wealth of experience and truly understands what is important to its customers and the partners that it works with

• To find out more about Shawbrook Bank, visit our website www.shawbrook.co.uk

• Contact:

Consumer Lending – 0845 600 7680

[email protected]

http://www.shawbrook.co.uk/

Why Does the ’Flexi Loan’

Make Sense For So Many Customers?

DOUBLE INDEMNITY – We Guarantee Your Guarantee!

WOULD YOU RATHER SEE THE GOODS AND THEN PAY FOR

THEM or PAY FOR THE GOODS AND THEN SEE THEM!

(Compare terms of business for the Flexi Loan verses cash)

REDUCING BALANCE LOAN with low penalty interest for early settlement.

ACCELERATED REPAYMENTS - You decide how much interest you pay and how long

your loan lasts (NOT Project Solar UK and NOT Shawbrook Bank)

Cornerstones

Features and benefits

Feature Benefit

Easy, quick and convenient Simple process, no fuss. Customer can apply in the comfort of their own home

and obtain and instant online decision. E-signature available, so they don’t even

need to sign a paper document.

Flexible repayments Easy for the customer to budget each month. Customer only has to make the

minimum monthly repayment and can also make additional repayments at any

time, saving them interest payable.

No need to wait Customer can get what THEY want, when THEY want it. No need to save up or be

limited by the cash they may have available.

Unsecured loan No security required, no solicitors, no lengthy time delays and they can enjoy

product immediately.

Consumer Credit Protection Additional protection not available when using own money or bank and building

society.

This includes safeguarding any deposit paid and upholding the guarantee issued

by supplier whilst they are a customer of Shawbrook Bank.

Low or No Deposit No large upfront or stage payments required.

Can be arranged with minimum deposit of £100

Interest only charged on outstanding balance Customer can make additional capital repayments or increased instalments. This

will reduce the amount owed and the amount of interest otherwise payable.

Opens up new credit line Leave existing arrangements intact and free for day to day, and emergency use.

Protects hard earned savings

Immediate survey and quick installation Customer controls their timetable. Not having to wait for bank or building society

to give go ahead

E-signature / online application Information can be collected in the house to obtain quick decision and accept the

customer application

Can also apply by E-signature and there is not any paperwork to fill in. All done

online, safely, securely and conveniently

How the loan works

ADDITIONAL PAYMENTS

The customer is required to make a minimum monthly repayment by direct debit and can make additional

payments, reducing the length of the loan and the interest payable

If the customer would like to make an additional payment they may:

– Call our customer helpline on 0845 650 6290 and pay via debit card

– Set up a standing order

– Transfer funds via internet banking

– Send a cheque in the post

REDUCING BALANCE LOAN

Interest is charged on the outstanding balance. Making additional payments reduces the term and the interest

they would otherwise pay

INTEREST CHARGE

Interest is calculated daily on the outstanding balance and is debited to the account monthly

Interest is charged from the date the advance is paid to the supplier (normally once the goods have been

delivered)

The interest rate is fixed for five years from the pay out date and is then variable for the remainder of the term

SETTLE EARLY

The customer can repay their loan in full at any time. They will incur a small settlement charge, which will be no

more than 58 days interest and some of our loans include an administration fee. The customer can contact our

customer helpline on 0845 650 6290 for more details

FLEXI LOAN – 0.79% PER MONTH

• Minimum Loan £1000. Maximum Loan £50,000 (after deposit)• Minimum Deposit: £100• Maximum Deposit: 25%• Maximum Age 65 for PV (Solar Customers)• Maximum Age 79. Loan term must expire before 85

(BoilerCustomers)• Joint Names or Single Names (Your Choice)• No Document Fees• No Proof of Income is Normally Required

Customer Rate 60 mthsper £1k

96 mthsper £1k

120 mthsPer £1k

180 mthsPer £1k

0.79% / 9.5% / 9.9%Monthly / Annual / APR

£21.00 £14.91 £12.94 £10.443

HOW THE ACCOUNT WORKS

Month Interest £ Repayment £ Balance £

0 0 0 8,600

1 68.10 89.81 8,578

2 67.93 89.81 8,556

3 67.75 89.81 8,534

12 66.13 89.81 8,328

36 61.19 89.81 7,700

72 51.80 89.81 6,503

Additional

payment

Interest Saved Settled ? Months

£0 per month £0 180

£21.48 2,812 120

£38.43 3,855 96

£67.36 4,850 72

£90.82 5,329 60

£185.67 6,249 36

Example:- £8,600 over 180 mths @ 0.79% Per mth – 9.5% Annual Rate, 9.9% APR (total interest £7,567)

• Reducing balance loan

• Additional payments allowed at any time

• Customer in control of interest they pay

• Standing order, Cheque, Debit Card payments, Internet Payments

• RBS 16-04-00 313218189.9%

For Illustrative Purposes Only.

DEFERRED FLEXI LOAN – 0.79% PER MONTH

• Minimum Loan £1000. Maximum Loan £50,000 (after deposit)• Minimum Deposit: £100• Maximum Deposit: 25%• Maximum Age 65 for PV (Solar Customers)• Maximum Age 79. Loan term must expire before 85

(Boiler Customers)• Joint Names or Single Names (Your Choice)• No Document Fees• No Proof of Income is Normally Required


96 mthsper £1k

120 mthsPer £1k

180 mthsPer £1k


£21.33 £15.14 £13.15 £10.60

INTEREST FREE – 0% APR

• Minimum Loan £1000. Maximum Loan £50,000 (after deposit)• Minimum Deposit: £100• Maximum Deposit: 25%• Maximum Age 65 for PV (Solar Customers)• Maximum Age 79. Loan term must expire before 85 (Boiler

Customers)• Joint Names or Single Names (Your Choice)• No Document Fees• No Proof of Income is Normally Required


24 mthsper £1k

36mthsPer £1k


£83.33 £41.66 £27.77

Credit products

Interest Bearing Credit

• Nominal rate 9.5% (APR 9.9%)

• Terms: 60, 96, 120 & 180 months

• Minimum deposit: £100

• Maximum deposit: 25%

• Minimum loan: £1000

• Document Fee: NIL

• App Retailer Code: Proje001

• First repayment due one month after installation.

• First repayment can also be deferred for 3 months after installation

• Customer can clear loan at any time, for a small fee. This will be no more than 58 days interest.

Credit products

Interest Free

• Nominal rate 0% (APR 0%)

• Terms: 12, 24 or 36 month repayment period

• Minimum deposit: £100

• Minimum loan: £1000

• App Retailer Code: Proje001

• First repayment due one month after installation

• Customer can clear loan at any time

Customer timeline

1. Sale agreed

2. Document completion using E-signature

3. Application accepted

4. Executed automatically upon E-signature by customer

5. Execution letter sent to customer by E-mail – 14 day cooling off begins

6. Customer survey completed (usually within the 14 day cooling off period)

7. Installation date agreed

8. Customer signs Satisfaction Note to confirm installation which Triggers Payment to Project Solar UK

9. Welcome letter sent to customer advising of repayment and account number

10.First repayment due one month later for Flexi Loan or 3 months later for Deferred Flexi-Loan

In association with your Lender Partner

Help Us To Help You!

Minimum Lending Criteria

Every prospective customer must meet our minimum lending criteria. Before you complete a Credit Application Form please confirm:

• Minimum age at time of application - 21• Maximum age at time of application 65 (Solar)• Maximum age at time of application 79 and below 85 at expiry of the loan term (Boilers)• A permanent UK resident for at least 3 years• The main applicant is an owner occupier with a contact telephone number

Having confirmed your customer meets our minimum lending criteria you should then complete our Credit Application Form. Accurate and legible information ensures fast and accurate decisions. When completing the credit application please pay particular attention to the following key areas………



Income

In the case of single applicants, only that applicant’s gross annual income should be entered. For joint applications the gross annual income of both applicants should be entered separately;

We are able to accept the following income types: (Where additional income is being used please state this in the notes or on the paper document).

• Employed income• Self-employed income• State/private pension• DLA/incapacity benefit (Tier 1) (VC)• Investment income (rental/annuity/stocks and shares)• Working family tax credit/child tax credit (only in support of an employed income above

our minimum requirement)

ALL OTHER BENEFITS ARE EXCLUDED

If the customer has more than one source of income please add ALL of this together when inputting it.



Employment Status

We accept:

• Employed

• Self-employed

• Retired- Including Medically Retired under the age of 65 (VC)

• State/Private Pension

• House Persons - as joint party (Please note - If an income is declared this will need to be clarified in the notes or on the paper document)


Help Us To Help You!Affordability

YOU As an FCA regulated Broker and a Shawbrook Partner you have some obligations and requirements:

• Ensure the product you offer is affordable and fits the Customer needs and circumstances• To obtain and provide accurate information from the customer• To provide correct income details - incorrect income details could be detrimental to the

application and in some cases, the loamy be cancelled or refunded. It may also raise some regulatory concerns.

WE As a lender regulated by the FCA and PRA and your Partner we have some obligations:

• To lend responsibly• To maintain and develop online tools to assist us in verifying income and information we

have provided when we underwrite applications.• To ensure we are lending responsibly we may need to request further evidence of

information declared on an applicationIt is important that all the information declared within an application is correct and we rely on your relationship with the customer to ensure the Credit Application Form is fully understood, true and accurate.



Addresses

If the goods are being installed at a newly purchased property:

• If the applicant has moved into the property - key this new address as the main address, remembering to provide a previous address. OBTAIN COPY OF CONFIRMATION OF PURCHASE

• If the applicant hasn’t as yet moved into the property - Key where they are currently living as the main address and confirm this. The next screen is the installation address. Please over type the address in the installation address box with the address where the installation will take place. Then “Add a Note” to confirm where the goods are being installed.

• Three addresses can be entered on the system; please provide any additional information or addresses to cover the customers three year address history in the notes

If the goods are being installed at a different address (eg Rental, BTL, Part Commercial or family assisted purchase: son/daughter buy for parents):

• Key the applicants address in the main address address field and key the installation address in the installation address box on the next screen. Then “Add a Note” to confirm where the goods are being installed.

The satisfaction note needs to show the installation address and must be signed by one ofthe applicants, not a 3rd party.



E-Signature

Every effort should be made to obtain a valid e-mail address to ensure customers receive all of their documents swiftly.



Our Opening Hours are:

Monday - Friday 09:00 - 21:00

Saturday 09:00 - 18:00

Sunday 12:00 - 17:00

Bank Holidays 09:00 - 17:00

Please note we do provide an underwriting service on a Sunday, however, the underwriters cannot be contacted by telephone.



E-MAIL: [email protected]

TEL: 0345 600 7680

www.shawbrook.co.uk

mailto:[email protected]

http://www.shawbrook.co.uk

Shawbrook App

Probe001

Legal and compliance

• The credit marketplace is regulated and there are numerous procedures and legal

requirements that have to be adhered to

• New regulation came into force on 1 April 2014. Under this new regulation home

improvement suppliers are required to become fully authorised to carry out Consumer

Credit activities.

• Project Solar UK Limited are an Authorised and Regulated Credit Broker

• The main organisations that you should be aware of and the key elements of regulation

that have to be complied with are:

Financial Conduct Authority (FCA)

Consumer Credit Act (CCA)

Financial Ombudsman Service (FOS)

Information Commissioners Office (ICO)

Financial Conduct Authority – (FCA)

• From 1 April 2014, the Financial Conduct Authority (FCA) replaced the Office of Fair Trading (OFT) as the new

consumer credit regulator.

• The FCA supervise the conduct of over 50,000 financial firms.

• The aim is to protect consumers, ensure the industry remains stable and promote healthy competition between

financial services providers, helping them keep to the rules and maintain high conduct standards

• They are fair and principled in their approach to regulation and supervision but will intervene when firms:

- treat consumers unfairly

- behave in ways that risk the integrity of the market

• They supervise firms differently depending on their size and the nature of their business. This includes:

- continuous conduct assessment for large firms and regular assessment for smaller firms

- monitoring products and other issues to ensure firms play fair and don’t compromise consumer interests

- responding quickly and decisively to events or problems that threaten the integrity of the industry

- ensuring firms compensate consumers when necessary

Consumer Credit Act (CCA)

• The Consumer Credit Act 1974 requires most businesses that lend money to consumers or offer goods or

services on credit, or engage in certain ancillary credit activities, to be licensed by the OFT (Now the FCA)

• Trading without a licence or correct permissions is considered to be a criminal offence and can result in a fine

and/or imprisonment

• The Act also regulates the way in which consumer credit licensees carry on business. For example, there are

strict rules on advertising, pre-contract disclosure, credit agreements and post-contractual information

• In addition, the Act confers certain rights on consumers, including in relation to withdrawal from a credit

agreement, early settlement, and equal liability

• There are numerous sections of the CCA that apply to the home improvement marketplace. Some elements

that you should be familiar with are:

Section 56 – Antecedent negotiations (acts and statements of the Supplier)

Section 66A – The right to withdraw

Section 75 – Joint and several liability

Section 94 – Early settlement

• However, this list is not exhaustive and you need to be aware of all sections of the Act

Consumer Credit Act : Section 56

• Section 56 makes the creditor responsible for the acts and statements of dealers or suppliers who have acted

as negotiators in relation to the finance transaction. It was introduced to put right the lack of protection afforded

to the consumer for innocent (and sometimes not so innocent) misrepresentations made by the supplier of

goods when negotiating a transaction

• It applies to cases where there are antecedent negotiations. This covers any kind of representations made by

the dealer to the customer about the goods, even one made before the question of credit arose. It includes not

merely words spoken by the dealer or the dealer’s staff, but also advertisements seen by the customer

• By Section 56(2) the supplier is deemed to conduct antecedent negotiations as agent of the creditor as well as

in his or her actual capacity. Therefore, if the supplier/dealer made a misrepresentation about the quality or

performance of the goods, he or she will have made this misrepresentation as agent for the bank. The

customer will, therefore, be able to sue either the bank or the supplier. No contractual term in the agreement

between creditor and debtor can exclude this right

• To further enhance this safeguard, under the 2010 regulations, the customer can seek redress from the

creditor in certain circumstances, if he is unable to obtain satisfaction from the supplier of goods or services.

This applies in cases where Section 75 of the CCA (see next slide) does not apply, provided that the cash

value of the goods or service is more than £30,000 and the credit does not exceed £60,260

Consumer Credit Act – Section 66A

• A customer entering into a credit agreement has a right to change their mind and withdraw from the credit

agreement, the CCA states:

“You have a right under Section 66A of the Consumer Credit Act 1974 to withdraw from this agreement without

having to give any reason. Your right of withdrawal will start on the day after the date we inform you in writing

that we have executed the agreement and will end 14 days after that day. “

• If a customer wishes to cancel the credit agreement after this period, it will only be agreed with the consent of

the supplier

• These cancellation rights are in addition to any cancellation rights offered to the customer under the terms of

the product contract

• Cancellation of the credit agreement does NOT automatically cancel the product contract

Consumer Credit Act – Section 75

• Under Section 75 of the Consumer Credit Act, the Bank is jointly and severally liable for any breach of contract

or misrepresentation by the supplier

• This means it shares equal responsibility with the supplier for the goods or service supplied, allowing the

customer to also put their claim or grievance with the credit provider, as well as the home improvement

company

• The customer does not need to reach stalemate with the supplier before contacting the credit provider - the

claim can be made to both the supplier and credit provider simultaneously

• This right is useful for the customer if the supplier has gone bust, or is simply not responding to letters or phone

calls

Qualifying spend to claim under Section 75

The item or service must have cost not more than £30,000

The customer does not need to have borrowed the full amount. For example, if a home improvement cost

£10,500 with a £500 deposit paid and the balance of £10,000 provided by the credit provider, the customer is

still covered for the whole £10,500. The key is the value of goods that have been purchased

Section 75 gives the customer the same rights against the credit provider as they have against the supplier

Equal liability

Additional peace of mind for the customer

•Under Section 75 of the Consumer Credit Act 1974, the credit provider may be equally responsible for any

breach of the contract by the supplier of goods and services on credit

•Under Section 56 of the Consumer Credit Act 1974, the credit provider may be equally responsible for any

misrepresentation by the supplier of goods and services on credit

•The Consumer Credit Act ensures that Shawbrook Bank is also liable for safeguarding any deposits taken and

upholding the guarantee issued by each supplier Customer

Shawbrook Project Solar

Consumer Credit Act – Section 94

• Under Section 94 of the Consumer Credit Act, the borrower has a right to repay all or part of their outstanding

balance, at any time. The customer will need to pay the amount due, less a rebate and will need to contact

Shawbrook who will provide a settlement figure upon request and provide details on how to settle the account

• Early settlement with Shawbrook is on our credit agreement and includes the following information:

“You have a right under Section 94 of the Consumer Credit Act 1974 to repay all or part of the outstanding

balance early at any time. We will provide you with a settlement quotation, which will tell you the amount that

you have to pay to repay the outstanding balance in full, or the impact of repaying it in part, as the case may

be. The amount of interest you pay will be less than you would have paid if the Agreement had run its full

course. We will tell you how you can make the repayment when you contact us. If you repay the outstanding

balance early in part, we will (after paying off any arrears, costs and expenses) reduce your remaining term

proportionally.”

• If a customer wishes to settle the account, the settlement figure will be no more than 58 days interest and may

include an administration charge. The customer can contact our customer helpline on 0345 650 6290 for more

details

Financial Ombudsman Service (FOS)

• The Financial Ombudsman Service was set up by law as an independent public body. Their job is to help settle individual disputes

between consumers and businesses providing financial services - fairly, reasonably, quickly and informally, settling disputes, without

taking sides and sharing what they do, to help prevent future problems:

“We believe we can best do what we're here for, by knowing what matters to us - and standing by our values in all areas of our work”.

What matters to us is that:

we do the right thing;

we treat our customers well and respect their needs;

we do what we say we'll do; and

we're inquisitive and build everyone's knowledge.

We want to provide our customers, businesses and consumers alike - with an excellent service. And we're constantly developing

and improving what we do and how we do it.

To help us in this, we are committed to:

delivering a trusted, fair and easy-to-use service - for everyone;

putting knowledge and expertise at the heart of everything we do;

being flexible, reliable and effective;

running a "lean" and efficient organisation; and

sharing our experience and insight - to help to prevent future problems.

Information Commissioners Office (ICO)

Any organisation which holds or processes personal data must be

registered to do so with the Information Commissioners Office. (ICO)

ICO is the UK’s independent authority set up to uphold information

rights in the public interest, promoting openness by public bodies

and data privacy for individuals.

ICO ensures that all firms that hold personal information about their

customers, meet all the necessary legal obligations, including any

electronic marketing

All suppliers must safeguard their customers personal data in

accordance with the Data Protection Act

Shawbrook Test

1 When did Shawbrook Launch?

2. Name two reasons why credit is important to you?

3. Name three benefits to the customer of using the ‘Flexi -Loan’

4. True of false? A customer must make a minimum of six repayments before they can make additional repayments?

5. What is the maximum settlement interest a customer will pay if they decide to pay off their loan in full?

6. What is your interest rate. Monthly, Nominal or APR?

7. If a customer wishes to change their payment date what should they do?. Will they be asked to pay any additional interest with

their next payment?

8. How many days does the customer have to withdraw from the finance agreement once it has been executed?

9. What is the minimum loan amount after deposit?

10. What is the maximum age at the time of application for pv solar customers ?

Shawbrook test

11.. Name two ways you can obtain the figures to complete the credit agreement:

12. If an application is in joint names, do both customers have to sign the credit agreement?

13. Can I obtain telephone support seven days a week?

14. What does FCA stand for?

15. What does ‘Treating my Customer Fairly mean?

16. What does equal liability mean?

17. What does Section 56 of the Consumer Credit Act cover?

18. What does Section 75 of the Consumer Credit Act?

19. What does Section 94 of the Consumer Credit Act cover?

20. What is the role of FOS?

Thank you!

Documents

Welcome! [betterenergycourses.com]betterenergycourses.com/wp-content/uploads/2018/04/...No need to wait Customer can get what THEY want, when THEY want it. No need to save up or be