FSA on notice to use new tools to protect mortgage buyers
On October 31 new regulations from the FSA should provide protection to the millions of people who take out new mortgages each year.
Laurence Baxter, Senior Policy Adviser, Which? said: "This is definitely a win for consumers. People looking for a mortgage should be able to count on the FSA not only to regulate the market but also to provide recourse if things go wrong. This comes after years of campaigning from Which? asking for better consumer protection, clearer information on mortgage terms, and advisers to be more accountable. The FSA has delivered the tools. Now the FSA is on notice to use them." Why will the new rules make a difference? - There are new strict rules on advertising, to ensure key information is given in a straightforward manner and not hidden in the fine print
- Advisers will have to meet certain training and competency requirements
- Advisers and intermediaries must disclose information about the commissions they are getting, and whether they deal with the whole market or just one lender
- Consumers will receive, at the earliest possible stage, a summary document called a Key Facts Illustration which shows the key facts of the mortgage in a standardised, comparable, easy-to-understand format. This is particularly impressive because the FSA conducted rigorous consumer research to be able to deliver exactly what is needed
- Mortgage complaints can be taken to the Financial Ombudsman Service (FOS) and, in some cases, thanks to Which? campaigning, this will also apply to complaints about activity prior to mortgage regulation.
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Date published: 11/3/2004 11:23:28 AM
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