loan offer

Consumer Loan Sign-Up Procedures eTRAC Users Guide In this document you’ll find details about... • Arranging a Sign-Up • Conducting a Sign-Up eTRAC Users Guide 1 March 2008 1. Introduction Welcome! The Users Guide has been designed to allow accredited introducers to review and update their knowledge around the processes and procedures for Personal Loan signups. In addition, this pack can be used to up-skill and accredit those staff not currently trained to conduct sign-ups. The electronic transfer of Personal Loan Offer Documents via email (eTRAC) allows St.George Bank / Bank SA to offer introducers the ability to act as the Bank’s agents for the purpose of Personal Loan sign ups. It is vital that correct processes and procedures are adhered to during the sign-up of the loan. The potential for claims by customers under the Consumer Credit Code is increased, along with a greater incidence of fraudulent loans being advanced if these are not followed. Based on this, and in order to try to reduce the potential loss to the Bank, this guide has been developed to educate introducer staff on their understanding of current processes and procedures. Background On completion of this guide you will be able to: • Explain the Personal Loan Sign-Up process to the customer/s • Complete a Personal Loan Sign-Up correctly, with reference to the procedures detailed in this guide Outcome of the Users Guide Who is this Guide Designed for? This guide has been designed for accredited introducers who wish to print loan offer documentation required to complete Personal Loan sign-ups for approved customers. All introducer staff completing sign-ups must read the guide to gain an understanding of the procedures and processes required for successful personal loan sign ups. eTRAC Users Guide 2 March 2008 2. Arranging the Sign-Up All introducer applications for St.George Bank / Bank SA Personal Loans are processed and assessed in Sydney by the Third Party Channels (3PC) Team. In all cases, the customer must meet all the Bank’s specific requirements before the loan is unconditionally approved. Introducers are to advise customers of the documentation they need to provide, the fees that will be incurred (eg: loan establishment fee, administration fee, stamp duty if applicable, insurance fees if applicable & any other miscellaneous fees), the time constraints around printing the Loan Offer and advancing the loan funds, and all other requirements of the sign-up process. If the customer cannot meet the Bank’s requirements, the loan must be referred to the Third Party Channels team and all outstanding issues resolved before the loan can be advanced. Loans may be advanced either via a St.George Bank or Bank SA branch, or via the Third Party Channels team. • If settlement is to take place via a branch, the 3PC Settlements team will make an appointment with the branch to ensure that a customer service officer is available to advance the loan. • If the loan is to be advance by the Third Party Channels team, all documentation must be faxed to them no later than 4.00pm (Sydney time) for the loan to be advanced that day. Loans will not be advanced unless all documentation has been signed correctly, and all required documentation has been sighted. Background Remember, if the customer cannot provide documentation that meets the Bank’s requirements, the loan sign-up cannot proceed. Even those customers well known to introducer staff must meet all documentation requirements. Documentation Required eTRAC Users Guide 3 March 2008 Identification • All Personal Loan customers must be accurately identified. Existing St.George Bank / Bank SA customers will need to provide a current drivers licence, or for non-drivers, another form of suitable ID showing their current residential address. A second form of ID must also be supplied. New customers to St.George Bank / Bank SA will need to provide the full 100 points of identification required under the Financial Transactions Reporting Act (FTRA). • Ensure the customer is aware of the Bank’s requirements in relation to identification, prior to the sign-up for the loan. The customer needs to be advised that the loan must be advanced within thirty (30) days of the Loan Offer being printed. Therefore, if a customer wants to, they can take the Loan Offer document and the Terms and Conditions brochure away to read, prior to signing the contract. In this case, they must sign the contract and return it to St.George Bank / Bank SA ensuring that the loan funds are advanced no later than 30 days from the Date of Offer. In most cases however, the customer will read the contract and Terms & Conditions at the time of sign-up. Loan Offer Ensure the customer is aware of the Bank’s requirements in relation to the Loan Offer, and that the appointment made fits within this time frame. Confirm with the customer that they are able to provide originals of the requested documents, and that those documents contain all the details required under Bank policy. Confirming Requirements Ensure the customer understands that the loan approval is subject to this documentation being provided at the time of the sign-up eTRAC Users Guide 4 March 2008 3. Conducting the Sign-Up Preparing the Sign-up Documents Introducer staff should prepare for a personal loan sign up prior to an appointment. Documents required other than the Loan Offer Document will include: • St.George Bank / Bank SA Privacy Act Statement • Current Personal Loan General Terms and Conditions Brochure • FTRA 100 Point ID Form • Direct Debit Request Form • Direction to Pay Personal Loan Sign Up Folder All loan documentation must be placed in the Personal Loan Sign Up Folder, clearly marked with the customer’s name/s. This folder should be used to file all the loan documents, both prior to and during the sign up. St.George Bank / Bank SA Privacy Act Statement All borrowers need to sign the St.George Bank / Bank SA Privacy Act Statement Personal Loan General Terms and Conditions The Personal Loan General Terms and Conditions booklet (St.George Bank item number 65007 / Bank SA item number 33007) forms part of the Loan Offer, and one copy must be handed to each customer at the time of the sign up to be read in conjunction with the Loan Offer document. Ensure that you provide the current version of the Loan General Terms and Conditions (the current brochure is dated May 2006). If you are unsure of the current version, please contact the 3PC team. FTRA 100 Points ID Form Required to be completed for all borrowers Refinance Loans Check whether the new loan is going to be used to ‘refinance’ an existing St.George Bank / Bank SA Personal Loan. A refinance is when some or all of the funds from the new loan are going to be used to payout an existing St.George Bank / Bank SA Personal Loan. eTRAC Users Guide 5 March 2008 If the loan is being used to refinance an existing St.George Bank / Bank SA Personal Loan, you will need the Third Party Channels team to print a Discharge Enquiry for the existing loan. Please ring the St.George Bank / Bank SA Third Party Channels Team on the morning of the sign up to print the Discharge Enquiry. If the loan is not being used to refinance an existing St.George Bank / Bank SA Personal Loan, you do not need to do anything else until the sign-up. The Discharge Enquiry must be printed on the day of the loan sign-up. This is because interest on St.George Bank / Bank SA Personal Loans is calculated daily, and as a result, the discharge figure will change every day. Additionally, any payments made to the original loan between approval and the sign-up will alter the discharge figure. Place the two Discharge Enquiries in the prepared Personal Loan Sign-Up Folder. Step-by-Step Procedures Outlined below are the step-by-step procedures for the sign-up. 1. In all cases, a photocopy of the front and back of the customer’s Drivers Licence must be included in the sign-up folder. The Drivers Licence must be valid, and contain the customer’s current residential address. If the customer does not possess a valid Drivers Licence, another acceptable form of photo ID is required. If you are unsure of what constitutes acceptable ID, please contact the 3PC Settlements Team on (02) 9952 1580. 2. Note the relevant details on the Verification Details Form. 3. If the customer is new to the Bank, or has not previously provided their 100 points of identification, you must complete the FTRA requirements. 4. You must sight the originals for all documentation used to complete the 100 points of identification process. A photocopy of the documentation must be included in the sign-up folder. 5. Note the relevant details on the Verification Details Form. eTRAC Users Guide 6 March 2008 6. You must also ensure that a payment method is completed. Personal loan repayments must be made by direct debit from a St.George Bank or BankSA account, or from another financial institution. A Direct Debit Request form must be completed and signed by all account owners. Repayments ‘over the counter’ are not an option for personal loans. 7. Open the email from St.George Bank / Bank SA containing a PDF version of the Loan Offer Document. Print the Loan Offer Document (one for each borrower and one for the Bank’s records) 8. Verify the customer’s signature on the declaration against a form of photo identification, such as a driver’s licence or passport. 9. If the loan is being used to refinance an existing St.George Bank / Bank SA Personal Loan, ask the customer to sign both the Discharge Enquiries. Hand the customer one of the signed Discharge Enquiries and place the other copy in the Personal Loan Sign-Up Folder. 10. Hand each customer a copy of the Loan Offer Document and the Personal Loan General Terms and Conditions. 11. Explain the Loan Offer Document to the customer, ensuring they understand each section: • Important Note (pg 1) • Financial Information table (pg 2), including – o The loan amount o The interest rate and whether it is fixed or variable o The total amount of interest payable if the contract runs it’s full term o The monthly repayment amount and total number of repayments o The due date for repayments o The fees and charges payable • Other information (pg 3), including – o Security – explain if the loan is unsecured or whether the Bank is taking a charge over any goods or items being purchased o Special settlement requirements o Contact Details in St.George Bank / Bank SA Head Office o Commission / brokerage paid by St.George Bank / Bank SA to you for referring the loan to us. eTRAC Users Guide 7 March 2008 12. Check with the customer that all details on the Loan Offer Document are correct. Changes can be made to small spelling errors on the Loan Offer Document, except for the customer’s name. Check with the Third Party Channels credit team prior to making any changes. If a manual correction is made, each correction must be initialled immediately beside the alteration, by you and each customer. If the customer’s name is spelt incorrectly, contact the Third Party Channels team for further instructions. If any other details are incorrect, contact the Third Party Channels team to have the loan reprocessed with the correct details. 13. Ask the customer to sign ALL copies of the Loan Offer Document. One copy must be placed in the Personal Loan Sign-Up Folder, and a copy given to each customer. If there are any spare copies, these should be placed in the Personal Loan SignUp Folder. If the customer chooses, they may opt not to sign the Loan Offer Document at this stage. Instead, they can take an unsigned loan offer and the Terms and Conditions away to review. Remember that the loan must be advanced within seven days of Loan Offer being printed, and within thirty days of the loan being approved. 14. The Verifications Details Form should also now be complete. Note: It is a Bank requirement that the originals of all documents used as part of the 100 Point ID process are sighted in all instances. eTRAC Users Guide 8 March 2008 15. Brokers in Western Australia are required to post or drop off original documents at the St.George Bank Perth Branch: St.George Bank Perth Branch Ground Floor 152-158 St Georges Terrace Perth WA 6000 Brokers in all other states and territories, fax the documents to the Third Party Channels Admin Team on (02) 9995 8151 then send the originals via express post to: St.George Bank Third Party Channels Team Personal Lending Level 1, 4-16 Montgomery Street Kogarah NSW 2217 Ensure there are no staples in any of the documents. If necessary, use paperclips. Documents must be placed in the folder in the following order: • Loan Offer Document – signed by the customer • Privacy Act Authority • 100 Point ID form and copy of documentation used to verify ID • Payment authorities • Photocopy of customers drivers licence • Any other documentation (i.e.: spare copies of Loan Offer Document, copy of payout figure for refinance loans, printed copy of Loans Diary, etc) Ensure all Tax File Numbers have been removed or obliterated from all documents in the Personal Loan Sign Up Folder. eTRAC Users Guide 9 March 2008