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Regulator demands fairer arrears practises
28 November 2008 15:48
The financial services watchdog has given mortgage lenders until the start of next year to implement fairer arrears practises.
Representatives from the Financial Services Authority (FSA) have written to the bosses of all the major mortgage firms, warning them over their conduct towards customers who have fallen behind on payments.
Lenders have until January 31st to get their houses in order following the FSA's action, which is the second such notice from the organisation in recent months.
John Pain, managing director of the FSA, said that conditions in the mortgage market were difficult and it seemed likely that this would continue for some time.
He said that it was the responsibility of lenders to ensure fair treatment of customers who go into arrears, but if they ignored this duty the FSA was prepared to take action against financial firms.
The FSA is the UK's financial sector regulator, and its responsibilities include maintaining market confidence, encouraging public understanding, fighting fiscal crime and protecting consumers.
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