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Lenders are hiding behind TCF as a reason not to lend

Regarding the comments made by Colin Franklin, head of sales at Coventry, in your news article headlined ‘Regulator is accused of mishandling TCF’ (Mortgage Strategy December 1). I’d like to welcome him to the world of brokers.

The way the Treating Customers Fairly initiative has been implemented by the Financial Services Authority is the biggest waste of time and money I have ever seen. It seems to heavily penalise brokers and IFAs.

When will the FSA consider looking at lenders’ approaches to TCF? I have a list of examples as long as my arm where lenders have pulled products and offers at the 11th hour, made clients jump through so many hoops they could have joined the circus and still refused to lend.

But the worst offence is lenders taking fees for surveys and reservations when they have no intention of lending.

None of these points have been instituted to protect consumers but they all help lenders.

Property price crashes are caused by surveyors being too frightened to value properties for what they are actually worth for fear of comeback from lenders that look to blame everyone else.

It’s about time lenders were subject to the same scrutiny as other sectors of the industry. After all, it wasn’t brokers, IFAs and surveyors who threw money at the US market, was it?

But then again, perhaps lenders are just hiding behind TCF as yet another excuse not to lend.

Adele Turton

Director

MI Private Clients

By email

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