
FSA letter warns mortgage firms to treat customers fairly
Daily news headlines
The letter is the second warning to lenders from the FSA in recent months. It comes in light of its earlier review which found weaknesses in arrears and repossessions handling, particularly in the impaired credit sector of the market, and the fact that increasing numbers of households are at risk of repossession.
"Conditions in the mortgage market are difficult and it seems likely that these conditions will persist for some time," says Jon Pain, FSA retail managing director. "In such a challenging operating environment, it is particularly important for senior management to ensure the fair treatment of customers, including when they go into arrears."
"The fair treatment of consumers in arrears will continue to be a priority for the FSA throughout 2009. Where we find that lenders are not complying with our requirements we will make appropriate and properly targeted use of our existing regulatory tools, which may include enforcement action," he added.
The letter states that the FSA expects the senior management of mortgage lenders and administrators to critically review current arrears policy; critically review current management practices and procedures; and assess whether, in practice, borrowers in arrears are being treated fairly by initiating a review of a sample of cases to assess whether the FSA's requirements are being met.
The FSA expects firms to address any weaknesses as a matter of urgency and chief executives must communicate conclusions and any actions the firm proposes to take to the FSA by January 31, 2009.
Click here for the letter
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Regulation
Regulation
French regulator questions need for share trading equivalence
Esma’s reinterpretation ahead of Brexit reduces need for equivalence system, says AMF official
Receive this by email