View more on these topics

What will the CML do?

From Shelia McKechnie

An open letter to Michael Coogan, director-general of the CML from the Consumers&#39 Association

I am sure you are aware of the long-running scandal of usually elderly consumers left with ever-increasing levels of debt accumulated through the mis-selling of equity release schemes, particularly Equity Home Income Plans, in the late 1980s and early 1990s. We remain very concerned about the victims of this forgotten financial scandal as many of them remain heavily in debt, with the amount increasing monthly.

I have attached a copy of an article to be published in Which? magazine this Thursday, which once again highlights the plight of elderly people distressed about their increasing levels of debt. As part of Advice for Life – our campaign for a system of fair, accessible financial advice, we are campaigning to ensure victims of past mis-selling scandals receive the redress they deserve. Teresa Fritz, principal researcher on Which? magazine, has written to the lenders involved in these cases requesting them to freeze the interest on these loans. To date, they have all refused.

I am writing to you, therefore, to ask whether you could instruct your members who still have customers with roll-up loans bought as part of an equity release scheme to freeze the interest on the debt. Lenders have already benefited enormously from the mis-selling of these unsuitable policies as many customers have paid off the capital sum and thousands of pounds in interest but remain heavily in debt.

Surely it is time for lenders to give these consumers some peace of mind and freeze the levels of debt accruing on the loans?

I hope you are able to take action on this matter as quickly as possible and I look forward to hearing from you.

Sheila McKechnie


The Consumers&#39 Association




Treasury resists need for charity regulation exclusion

The Treasury has admitted that proposals to exclude charities that do not arrange mortgages “by way of business” will be harder to implement than imagined. While many respondents to the latest consultation on mortgage regulation agreed that money advice agencies should not be regulated in principle, some say a specific exclusion will have to be […]

VirginOne expands Horwich team

VirginOne has announced plans to expand its intermediary operation in Horwich, Lancashire. VirginOne already employs over sixty people to look after intermediary business, both out in the field and at its Norwich headquarters in Norfolk. Plans for growth include at least 20 more people at the new contact centre in the North West. Scott Mowbray, […]

Inflation report puts rate cut on cards

Prospects of a further drop in interest rates have improved after the Bank of England revised forecasts for inflation downwards in its latest quarterly inflation report. The Bank now predicts that UK inflation is set to remain below its target of 2.5% for most of the next two years. This means the Bank&#39s rate-setting Monetary […]

Repent sinners

From Frank HughesIan Griffiths&#39 letter about Abbey National (Mortgage Strategy August 5 2002) did strike a chord with me. I&#39ve not been wild about Abbey National since, admittedly a few years back, I lost over £2,000 in fees and commissions as a result of its incompetence.An established self-employed client was moving from High Wycombe to […]

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]


News and expert analysis straight to your inbox

Sign up