Secured loan market will survive says AFB

In a rallying cry to the secured loan market yesterday Robert Sinclair, director of the Association of Finance Brokers, says the current economic crisis is not the death knell for the market.

He says: “The market has gone from being worth £500m a month to £60m a month. For any other sector that would spell the end but not for the secured loan market.”

Sinclair says although the market is seeing some tough times he believes it will adapt to these changes and prosper.

He also took the opportunity to criticise the current Finance Industry Standards Association code of conduct.

He believes brokers and lenders are following a code that will not stand up if complaints are made about companies in the future.

He says: “The FISA code has been turned down by the Office of Fair Trading and this raises legal issues for FISA members which they need to think about.”

But John Parker, chief executive of FISA says it is reworking its code of conduct and looking at getting it approved by the OFT.

Parker says: “The current code does not go much further than the law. We are drafting two new codes, one for consumers and one for businesses and have had a positive response to our plans.”