FSA Ask Mortgage Lenders To 'Treat Customers Fairly'

The Financial Services Authority (FSA) has reiterated its call for mortgage lenders to ensure they are treating customers fairly in the current market conditions as its latest review finds weaknesses in the way some lenders are handling arrears and repossessions - particularly for consumers with impaired credit histories.

The review is the latest stage in the FSA's ongoing programme of work designed to monitor the effectiveness of its regulation of mortgage lending, address key issues in the mortgage sector and ensure that consumers are treated fairly and can make informed decisions.


This latest warning comes as new data on mortgage lending from the FSA shows that the number of consumers facing arrears and repossessions, while historically low, is increasing.

In dealing with customers in arrears, the FSA is calling on firms to be flexible, to make sure they consider customers' individual circumstances and to use court action as a last resort.

Consumers also need to make sure they can afford the mortgage and if they are in trouble to talk to their lender immediately.

Lesley Titcomb, FSA Director responsible for the Mortgage Sector, said: "As our data shows in these current market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly. This means paying attention to their individual circumstances and not repossessing their homes when there may be an alternative solution. Repossession has to be the last resort."

(CD/JM)