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IFA draws up one-page response to long KFIs

The Mortgage Practitioner sole trader Danny Lovey has created a one-page key facts illustration in response to frustration at long KFIs from lenders.

He says the KFI has been designed in the spirit of the FSA’s requirement that the documents should be clear, fair and not misleading.

Lovey decided to create his own KFI after going through long documents with clients. He says most KFIs contain unnecessary or misleading information.

He believes the main flaw is the over-emphasis on APR as it only represents what the client will pay to maturity. He also says solicitors’ fees are misleading as they are estimated and often do not represent what clients will eventually pay.

Lovey admits there is room for two pages of amplification to his page but says what he has created is more than acceptable and fulfils the FSA’s criteria.

Lovey says: “The one page that I put together is more than sufficient for the customer as it is clear, fair and not misleading. My experience shows it is exactly what clients want and is based on what they want to see.”

FSA spokesman Robin Gordon-Walker says: “We very much encourage and welcome any efforts in the industry to work towards shorter key facts illustrations as long as it contains all the relevant information for the customer.”

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