In response to the Association of Finance Brokers White Paper on the regulation of secured loans, the Finance and Leasing Association has called for the industry not to focus on any regulatory change in the current climate.
The AFB paper sets out the regulatory options for the industry, which include staying under Office of Fair Trading and Consumer Credit Act control, or accepting full Financial Services Authority regulation.
Fiona Hoyle, head of consumer finance at the Finance & Leasing Association thinks any change is unnecessary.
She says: “The second mortgage market is already regulated by a comprehensive statutory regime, delivering real consumer protection. In the current economic climate, the focus should be on providing practical assistance to customers in financial difficulties via industry best practice, an approach firmly supported by government.”