FSA urge lenders to act responsibly

The Financial Services Authority (FSA) has renewed its calls for mortgage lenders to treat struggling customers fairly in the current market conditions.

The FSA's review of 13 specialist lender brands found weaknesses in the way some borrowers handled arrears and repossessions - particularly for consumers with impaired credit histories.

Significantly, many specialist lenders were too ready to take court action and had low standards of systems and controls in place to regulate mortgage debt handling.

Peter Williams, executive director of IMLA, hit back at the FSA insisting that most lenders acted responsibly in troubled times.

He said: "Specialist lenders are committed to taking account of the interests of both customer and lender through open dialogue between the two parties.

"The principles of TCF ensure borrowers in distress are treated as individuals and that even in the worst case scenario of possession, the borrower is given the best advice and assistance."

In other news, new data from the FSA has revealed that the total value of outstanding residential loans is £1,166 billion, an increase of ten per cent on 2007.

Mortgages News posted on 05/08/2008 15:32:43