means more brokers can see the benefits of loans for clients, it will be good for everyone.”Simon Mouncher, operations director at em-financial, says the regulation of the second charge market by the Financial Services Authority would benefit consumers as well as brokers. He says: “First and second charge lending share a similar market and FSA regulation would make things clearer for the general public.” But last week, the Commons Treasury Select Committee was told such regulation would overwhelm FSA resources. Consumer groups want the FSA to regulate lending under the Consumer Credit Act – an idea that conjures up visions of an FSA mystery shopping exercise on a south London sink estate to check out compliance with some rougher representatives of the trade. It is easy to picture Ms Middle England disguised in a trackie and market trainers, questioning shaven headed Mr Dodgy Lender on the details of transactions. “Cor blimey mate, that’s a bit rich ain’t it”? she exclaims. “That equates to an APR of 156%. That’s extortionate.” No doubt in his book that’s 3% per week which wouldn’t sound such a bad deal. But that’s not the point. At a recent Commons Treasury Select Committee hearing, the chairman of the FSA Sir Callum McCarthy said his organisation wasn’t right for the job. “Giving the FSA responsibility for consumer credit means we would have to take on another 100,000 licensees”, he said, adding that because the FSA would have to deal with Trading Standards officers, it was “far from clear” such a move was appropriate. All credit (pardon the pun) to the FSA for telling it like it is. After all, it said lenders are not distributing documents outlining key information, which is obviously more important that protecting the less fortunate from out and out usury. Of course, it’s not the FSA that sets the agenda but the government, and it seems this is not dictated by the size of the problem but where you can get quick results.
- Top trends
Total indebtedness on both secured and unsecured lending stood at 1.1 trillion at the end of June 2005 – around 23,000 for each adult. A report from PricewaterhouseCoopers also shows that individuals who enter into individual voluntary arrangements owe an average of 60,000 on credit card and other unsecured borrowing to 11 creditors.2005 saw record […]
It is a fallacy for small directly authorised brokers to think of themselves as independent as they have no choice but to place business through big providers, says Richard Griffiths
The Government has set the date for the compulsory implementation of Home Information Packs for June 1 2007. The Council of Mortgage Lenders though says it is disappointed with this timing, as it risks creating disproportionate disruption during the housing market busy period of spring and summer. The CML has been working extensively with the […]
From Ian A Moore Lenders appear to be hiding behind data protection rules. I am arranging new purchases for two clients, for whom I arranged original mortgages with the Halifax and Abbey. As both clients are currently in tie-ins it was prudent to arrange the increases with their existing lenders while porting their original deals […]
Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]
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