Mortgage debt collection to be regulated

Debt collection in relation to mortgages will be regulated under the FSA, as requested by respondents to the Treasury&#39s consultation paper.

The Treasury says the regulated activity of &#39administering&#39 a regulated mortgage contract expressly includes “taking any necessary steps for the purposes of collecting or recovering payments due under the contract from the borrower.”

This means that, where debt collecting involves these activities, a firm will need to be authorised unless it can take advantage of a relevant exemption.