New FSA Rules

“New protection for struggling homeowners”

Source – Moneyfacts.co.uk

New rules are to be introduced which will ensure there are proper protections in place for vulnerable homeowners in arrears on theirmortgages or people entering sale and rent back agreements.

The Financial Services Authority (FSA) has said customers in arrears must be treated fairly by firms and in particular that:

• firms must not apply a monthly arrears charge where an agreement is already in place to repay the arrears;
• payments by customers in financial difficulties must first be allocated to clearing the missed monthly payments, rather than to arrears charges, which can be repaid later; and
• firms must consider all options for borrowers, with repossessions always the last resort.

A new rule has also been introduced requiring firms to record all arrears handling telephone calls and to keep the records for three years.

Read the whole article HERE

Tags: arrears, borrowers, customers, fsa, landlord, law, mortgage, payment, property, repossession, rules, sale

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