Those that are struggling to pay their mortgages should be protected by the financial service authority, one expert has claimed.
Peter Vicary-Smith, chief executive of consumer campaign group Which? stated that it is unfair that people who are already finding it difficult to afford their home loans should be targeted with “excessive charges” from lenders.
He remarked: “The FSA needs to start protecting consumers who have been made vulnerable by the recession and stop protecting the commercial interests of lenders trying to evict people from their homes.”
His comments come as the Treasury Committee published its report into mortgage arrears and access to financing for purchasing a house.
In the report, the committee expressed it is “extremely concerned” with lenders using repossession freely and not as a last resort, something it urged the FSA to address.
Mr Vicary Smith added that the FSA should respond to the committee’s condemnation of its enforcement processes by publishing a list of institutions that are being investigated for poor practice in seeking mortgage arrears.
By Francis Finch