Welfare Reform on the Web (April 2010): Homelessness - UK

Charged out

H. Springett

Roof, Mar./Apr. 2010, p. 24-25

Sub-prime lenders are imposing punitive administration charges on borrowers who fall into mortgage arrears, increasing the likelihood of repossession and homelessness. They are ignoring the Financial Services Authority's (FSA) conduct of business rules introduced in 2004 to protect borrowers. The FSA is currently consulting on proposals designed to strengthen these rules, but commentators fear that unscrupulous firms will also ignore any new measures.