Your location: FSA to investigate lenders
5 December 2007
The Financial Services Authority has announced that it is to take an urgent look at whether lenders are treating customers fairly when they handle mortgage arrears and possessions.
In a speech to the Council of Mortgage Lenders Annual Conference, Clive Briault, the FSA's Retail Managing Director, said that all firms should be abiding by 'written policy and procedures for dealing fairly with customers in arrears'.
He acknowledged that there is growing evidence of a 'one size fits all approach to arrears recovery' with lenders failing to consider individual cases on their own merits. An investigation, Mr Briault said, needs to take place 'as a matter of some urgency'.
In response, Shelter's chief executive Adam Sampson said:
'It's extremely unfair that the aggressive actions of some lenders, particularly in the sub-prime sector, are leaving homeowners more vulnerable to repossession and homelessness than others.
'With repossessions set to increase in 2008 and Shelter seeing more of these cases than ever before, the FSA must ensure all lenders are regulated and deal fairly with their customers to prevent thousands of people losing their homes unnecessarily.'
Mr Sampson added: 'The FSA is right to raise these issues, but it must now take firm, swift and decisive action to ensure homeowners get just treatment when they fall into financial difficulties.'
