27 Jan

FSA announces new protection for borrowers

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.ADNFCR-1222-ID-19580273-ADNFCR

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