FSA too lax over repossessions
September 14, 2009
The UK’s financial regulator, the Financial Services Authority, has been accused of being too lax over the rising level of repossessions in the UK, according to a recent report.
A group of MPs has accused the regulator of failing to protect homeowners that are in danger of having their homes repossessed, stating that the agency is not taking effective action against aggressive lenders who are persecuting struggling homeowners in the ongoing difficult financial climate.
The Mps from the Treasury Select Committee said that the FSA is taking a ‘leisurely approach’ when it comes to repossession levels in the UK.
They said that the agency was not doing enough to stop aggressive lenders who are charging fees that are way over the top, and are quickly turning to repossession proceedings when homeowners fall behind with mortgage repayments despite the recession and global financial crisis.
MPs have said that the worst offenders are sub-prime lenders, and that only swift action from the FSA can help to protect homeowners from losing their homes.
One Treasury Select Committee MP said: “We suspect that the small number of cases being brought against lenders making excessive arrears charges is merely the tip of the iceberg. This is why it is so important that lenders are compelled to open up their books and justify their charges, while the FSA must be prepared to take decisive action where it finds evidence of wrongdoing.”
He added: “The seemingly leisurely approach of the FSA in terms of completing its mortgage arrears review and enforcing possible breaches in the rules in the area of mortgage arrears is a matter of grave concern. We call upon the FSA to spell out clearly how it will improve its performance in terms of bringing miscreant firms to book.”
- Increase recorded in repossession numbers It has been reported recently that the number of repossessions has increased as cash-strapped homeowners once again struggle to cope with finances and keep up with repayments. The figures relating to repossessions was released by
- Repossession levels may not be as high as predicted The Council of Mortgage Lenders has stated recently that the level of repossessions likely to go ahead over the course of this year may not be as bad as originally estimated, and as such the
- Thirty percent rise in mortgage arrears A recent report has shown that although the base interest rate has fallen to its lowest level in history, at just 0.5 percent, the level of mortgage arrears in the UK has soared by 30
- Pressure off for homeowners as repossession levels fall The release of recent figures has indicated that the pressure for homeowners in the UK may have eased off, with data showing that the number of repossessions in the UK fell by 7.5 percent in
- Mortgage default levels haven’t peaked yet Over recent years a rising number of people have fallen behind on their mortgage repayments, with financial problems being fuelled by the global credit crunch and the recession. This rise in the level so mortgage
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