The Financial Services Authority (FSA) has announced that a strengthened set of measures to help those with mortgage-related debt is to be implemented, meaning that advisers will be accountable to the body.
Under the plans, it will be made clear that firms are not permitted to demand monthly arrears charges when an agreement has been reached to repay the debt.
And companies will be urged to look at all options available to borrowers, with repossessions being considered a last resort.
Director of the mortgage sector with the FSA Lesley Titcomb noted that this step emphasises the standards to be met by creditors and will ensure that those in financial trouble are treated equitably.
“Lenders need to be in do 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,” she said.
Meanwhile, the Consumer Credit Counselling Service recently launched an equity release scheme to help retired Britons avoid repossession and improve their quality of life.
By Sarah Adie