FSA criticises subprime industry

The Financial Services Agency (FSA), the UK industry regulator, has found that lenders and intermediaries inadequately assessed and monitored their subprime loan customers.

Clive Briault, managing director of retail markets at the FSA, says: "We are very concerned about these findings. Consumers in the subprime market are vulnerable people who may have high debts or a bad credit history. It is therefore important that they are properly assessed and advised.”

In a review published today, the FSA said that intermediaries:
• inadequately assessed consumers’ ability to afford the mortgage in a third of the 485 cases;
• inadequately assessed suitability in almost half of