Five mortgage and loan arrears mediation companies have founded a new trade association.
The Association of Arrears Mediators (AAM), officially set to launch on 1 February, will establish a professional code of conduct
This will align the arrears industry with similar requirements placed on mortgage lenders, the broader financial services community and other professional practices.
The founding memebers are Debt Management Services, Excel Collection & Enquiry Services, NCI Resources, PDP Management Services and Property Services Partnership
Mervyn Pilley will become the inaugural secretary-general of the society.
He says: "The objectives will be to create consistent, high quality standards and best practice throughout the sector to help members support lenders in their regulatory obligations with the FSA and other interested groups."
The AAM plans to ensure consistency of service provision among its members across all lending institutions.
This would enable them to better met the required legal and regulatory reporting standards, as well as fulfil their compliance obligations under TCF principles.
Under the new eligibility and ongoing code of conduct rules, all field agents must be fully licensed by the Office of Fair Trading (OFT) and comply with all relevant regulations.
The rules also require consistent training programmes for all field agents and internal staff, performance monitoring of all field agents and staff, a robust complaints procedure and a comprehensive professional indemnity cover.
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