Be fair over mortgage loan arrears lenders are told
02/12/08
Mortgage lenders were told to treat mortgage loan customers fairly or they could be faced with a fine. The Financial Services Authority sent out a letter to mortgage lenders and administrators reminding them of their obligations when it comes to mortgage loans and commented that they expected mortgage lenders to review their policies.
This news comes at a crucial time as mortgage loan arrears are due to increase substantially with the downturn of the UK economy.
Managing Director of retail markets at the regulator Jon Pain commented, “Where we find that lenders are not complying with our requirements we will make appropriate and properly targeted use of our existing regulatory tools.”
“Banks are committed to treating customers fairly and have made commitments to proactively approach customers they feel might be headed for financial trouble," Chief Executive of the British Bankers’ Association (BAA), Angela Knight said. The BAA commented that it had committed to help mortgage borrowers.
