FSA may fine lenders with heavy-handed attitude to home repossessions
In a new two-pronged attack, it looks as though the FSA is looking into potential fines for financial companies in the UK who are less understanding of those who fall into mortgage arrears and may be too quick to go down the repossession route. However, the legality of such a move is questionable and will no doubt be something which the financial companies in the UK will look into.
While in general the move has been well received by regulators, homeowners and charitable organisations there is some confusion as to how exactly the possible new strategy will help in the short term and whether mortgage companies will abide by the guidelines. If successful this should reduce the number of repossessions in the UK in the short to medium term which would have a beneficial impact on the UK housing market and reduce some of the doom and gloom we've seen of late.
So we now have the government on one side pressing for mortgage interest rate reductions and the FSA on the other side suggesting that fines may be appropriated to individual companies with less than helpful attitude towards repossessions in the UK. This is a story which is just starting to unfold.
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