Speaking at last week's discussion at the House of Commons, Financial Capability: Making informed decisions about mortgages, Coogan pointed out the potential consequences if the directive ends up including mortgages.
He told attendees: “This directive is the biggest threat to the industry and will unwind everything that has been done. It should not include mortgages and UK lenders should be excluded.”
The Consumers' Association aso says it hopes the directive, currently being redrafted, will not include mortgages.
John McFall MP, who chaired the discussion, says he will be discussing the directive at a Treasury Select Committee meeting over the next three to five months and is awaiting input from the CML.
The fear is that the directive could override all the regulations the Financial Services Authority is introducing on mortgages.