V12 Procedure Guide - Flipbook - Page 23
Product + Procedure Guide
If you apply or wish to apply VAPs to the
loans associated with V12VF Products:
a) You must ensure that VAPs meet the needs
of customers.
b) You must identify whether the Product is
regulated and have the necessary insurance
distribution permissions where applicable.
c) You must be able to explain to us on
request the Product and your sales process,
including:
• That a quality assurance process is
in place to monitor transparency and
disclosures in the sales process.
d) You must identify the VAPs as required on
V12VF agreements:
• You identify the details and cost of the
(agreed) VAPs where the customer
chooses to take and fund the Product on
the V12VF agreement (not just added to
the sales price).
• The overall value and bene昀椀t of the
product to the customer.
- In the proposal submission (via CALMS
system or integration 昀椀elds).
• The pre-sales disclosure to the customer.
- On the invoice.
• The explanation to the customer of the
length of cover versus the term length of
loan (where not the same).
• You retain and make available for audit
any documents relating to the sale of
VAPs on a V12VF loan.
• That there is clear transparency on the
cost to the customer of adding the VAP
to the v12vf loan. (E.G. Adding £1,000 to
your loan will cost £x over the term).
• You will share complaints data with
V12VF where they are concerned with
the VAP or the sales process.
Cancelation of VAPs
The customer can exercise their
cancellation rights on the VAPs, but not
on the Hire Purchase Agreement (HPA).
(HPA applies to HP and PCP Products)
In such circumstances you should:
a) Pass funds if cancelled or unwound to
V12VF who will apply as a partial early
settlement to the HPA.
b) Inform the customer of the 昀椀nancial
implications if the funds are not passed to
V12VF for a partial early settlement to
be applied.
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