Robert Sinclair, director of AIFA, says the Financial Services Authority has lost sight of the broader objectives of TCF.
He says: “I believe the FSA has mismanaged the principles of TCF. It is about making sure that industry processes broadly carry out its principles rather than concentrating on individual cases. The FSA has got it badly wrong.”
The comments were made as part of a mortgage panel debate at the annual Sesame Symposium last week. The FSA has since written to lenders to ensure they are adopting a TCF approach to arrears and repossessions.
Colin Franklin, head of sales at Coventry, who attended the de-bate, claims lenders are being pulled in different directions.
He says: “The government is telling us to lend more. But if we presented the FSA with a corporate plan to grow our lending it would come down on us like a ton of bricks.
“It seems the government is saying one thing and the FSA is saying another.”