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Broker-client conversations to be recorded as FSA steps up bid to treat borrowers in arrears fairly
Wednesday 3rd February 2010As part of its ongoing plan to ensure that borrowers in arrears are treated fairly by lenders and brokers, the FSA has announced new proposals to protect customers who have fallen behind with mortgage repayments.
These proposals include requiring firms to record all arrears handling telephone calls and to keep these records for three years, so claims of any unfair treatment can be easily investigated.
Lenders will also be banned from applying a monthly arrears charge where the firm and the customer have agreed an arrangement to pay off the arrears.
The FSA added that the newproposals will also mean all mortgage advisers and those who arrange non-advised sales will be individually accountable to the FSA, and need to demonstrate they are “fit and proper” for their role.
Issuing a warning to mortgage brokers and lenders that any dishonest individuals will be “removed” from the industry, Lesley Titcomb, FSA director responsible for the mortgage sector, said: “Lenders need to be in no doubt of their obligations to customers who fall behind with payments and must realise that such circumstances are not an opportunity to create further profits.”
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