Credit broking fees update
The FCA has recently issued guidance regarding the clarity of disclosures and information provided to clients being charged specific fees by their insurance intermediary for arranging consumer credit. The FCA has confirmed that any specific fees charged for arranging credit (credit broking fees) must be reflected in the lender’s APR.
We believe that in the vast majority of instances where Aviva consumer credit is offered by intermediaries on behalf of their clients, a separate credit broking fee is not levied. However, there are a minority of instances where this does occur and we wish to clarify our position going forwards.
Where Aviva credit, regulated by the Consumer Credit Act, is being offered on behalf of our clients, the charging of a separate credit broking fee is no longer supported.
Where Aviva credit, that is not regulated by the Consumer Credit Act i.e. where the client is a limited company, is being offered on behalf of our clients, the charging and disclosure of separate credit broking fees remains your responsibility.
If you have any questions regarding our stance on this or still wish to charge a credit broking fee, please contact your Aviva sales manager.
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