FSA sub-prime review prompts TCF fears


The FSA could force sub-prime mortgage lenders to shut out the very people they were set up to help, according to Reynolds Porter Chamberlain.

The law firm says the regulator’s review of the UK sub-prime market could scare some firms away from offering certain deals as they will fear being accused of not treating customers fairly (TCF). The Financial Services Authority last week announced the second stage of its review of the effectiveness of the mortgage regime will focus on the sub-prime sector, where the risk of consumer detriment may be higher. Sub-prime mortgages are offered to customers with poor credit histories, irregular income or even those who have previously been bankrupt. But Reynolds’ lawyer Robbie Constance says...

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