Which? Money has reported two sale and rent back (SRB) firms to the FSA after uncovering "woefully inadequate" advice.
Which? Money contacted nine firms about SRB as part of its investigation. Of the 17 advisers its researchers spoke to, just two gave acceptable advice.
As a result, Which? has reported both Property Locksmith and Rapid Property Group to the regulator. As an introducer, Property Locksmith is not authorised, yet its adviser gave a Which? researcher a quote for SRB.
Seven advisers failed to discuss whether SRB was a suitable option for the customer, with six of the seven going on to offer quotes.
In one case, a Which? researcher was given a quote that would have left the customer without enough money to pay off their debts, while another adviser did not even ask how much the customer's debts were.
Peter Vicary-Smith, chief executive of Which?, said: "It's simply unacceptable that people are receiving shoddy advice about such a huge financial decision.
"Not only are regulated firms not doing enough to ensure vulnerable consumers make the right choices, some are offering sale and rent back that aren't authorised to do so.
"The FSA must tighten the screw on these firms to make sure the rules are followed and consumers are protected."
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
Needs to apply for authorisation