Government plan to improve customer protection

The government has announced plans to alter the rules governing financial services and improve consumer protection in the mortgage market.

Rules governing activities regulated by the Financial Services Authority FSA will be amended to ensure that consumer protection safeguards will apply to a firm buying existing mortgages from a mortgage lender.

This means that borrowers whose mortgage is taken over by another firm will continue to be protected by FSA requirements to treat customers fairly and use repossession only as a last resort.

The Citizens Advice Bureau has welcomed the government's new plans and the continued commitment to ensure people with mortgages, secured loans and sale and rent back agreements are protected.

Citizens Advice Social Policy Officer, Peter Tutton, said: "We also welcome the decision to bring secured loans and first charge mortgages into a single framework of consumer protection."

John Charcol, a leading mortgage firm, recently said that the remortgage market is likely to have passed its lowest point and will see an increase in activity this year.
 

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2011-01-31 16:19:16 © Moneyextra.com