The Equity Release Council (ERC) has launched a new version of its standards which includes a new Consumer Charter.

This refresh to ERC Standards defines best practice within the equity release industry and is designed to provide a higher level of consumer protection.

The changes were made following input from eight working groups with the aim to make the standards more transparent and accessible.

According to the ERC all customers will be able to: ‘trust in a tailored, thorough and transparent process that ensures they received the right outcome based on their individual circumstances.’

Historically, if a customer moved into care in a formal setting such as a care home, the Early Repayment Charge (ERC) was waived. However, the new Product Standard expands this to waive the ERC if the person moves in with relatives to receive care and a medical practitioner’s certificate is provided.

With the number of people aged 85-plus forecasted to grow by 62.7% by 2043, ERC insists there is a need for older people to have access to flexible financial solutions in later life to support them through various circumstances.

Council members upholding this standard will guarantee that later life customers  that they can repay their loan when going into care without incurring additional costs.

All council members are required to adhere to the standards and principles which safeguard customers by ensuring they are fully informed, and products and services adhere to best practice.

Commenting on the ERC’s standards initiative, Will Hale, CEO of Air said: “We welcome the ERC’s commitment to reinforcing good practice across the sector but standards alone are not enough.”

Hale said the priority was to provide practical tools and resources which advisers across all parts of the market, not just ERC members, can use to develop their businesses and to ensure the way they are serving over 50s customers is fit for purpose.

He added: Despite the well-intentioned efforts of the council, and a number of iterations of the standards, our experience suggests that there is still more work to be done if the sector is to fulfil its potential in helping customers appropriately use their housing wealth to support their wants and needs in later life.”