27
Jan
FSA announces new protection for borrowers
The Financial Services Authority (FSA) has unveiled a raft of new
measures to help borrowers who fall into arrears with their
mortgage payments.
Proposals set out by the organisation aim to make the mortgage
market fairer for customers.
Measures include making sure that repossessions are always the last
resort for financial services firms and preventing lenders applying
adding early repayment charges to arrears charges.
Consumer group Which? welcomed the announcement. Chief executive of
the organisation Peter Vicary-Smith commented: "It's shameful that
some lenders have been hitting struggling customers with excessive
arrears charges so we're pleased that the FSA is at last taking
action."
The FSA also announced that mortgage advisers and those who arrange
non-advised sales will be individually accountable to the
institution.
Anyone working in the sector will be required to prove that they
are "fit and proper" for the role.
This will benefit the industry as well as consumers because
dishonest practitioners will be removed from the mortgage market,
the organisation stated.