FISA members push for fee hike

The Finance Industry Standards Association is set to increase its lender member fee by £2,000 next year in an attempt to secure the future of the standards body.

John Parker, chief executive of The FISA says lender members were the ones who requested the increase in an attempt to recoup losses from other secured loan lenders that have withdrawn from the market and cancelled membership.

From March next year lenders wanting to renew their membership will have to pay £7,000 instead of £5,000.02.

Parker would not confirm whether the decision was unanimous among lender members.

He says: “Lenders volunteered to increase membership. We are looking at our financial position and looking at a number of things we can do to add value for lenders.”

Parker says it has no plans to increase broker fees at the moment.

He says: “We recognise that some brokers are finding things quite difficult financially at the moment.”

John Webster, chief executive officer of Swift and a member of FISA says he is happy to pay the increase in fees if it means FISA has a future.

He says: “FISA has had its funding squeezed as a result of the credit crunch. Lender members feel it has an important role to play within the secured loan industry and we want to see it survive through the crunch.”