It was recently announced by Mark Hoban, financial secretary to the Treasury, that the regulation of secured loans was being transferred from the Office of Fair Trading to the Financial Services Authority (Mortgage Strategy Online, January 26).
This was off the back of a consultation launched in December by the Treasury looking at switching the regulation of consumer credit from the OFT to the FSA and subsequently the newly established Consumer Protection and Markets Authority.
The move will take the protection from all second charge borrowers of section 140 of the Consumer Credit Act 2006.
It will be more to the detriment of borrowers when this happens as the FSA does not have such a powerful piece of legislation. But then maybe this is the aim – to pretend it is for the good of second charge lending?
As a result I’m not sure about this at the moment. If this legislation is transferred to the FSA rule book then I am in total agreement. If not, I have concerns for all.