The FSA has referred four firms for enforcement in a clampdown on poor arrears handling, while several more firms are currently being assessed for referral.
Following a recent review, the FSA has found continued weaknesses in the way specialist lending firms and third party administrators are handling mortgage arrears and repossessions. In many cases the FSA found a high incidence of mortgages moving straight into arrears and potential breaches of responsible lending rules. All firms investigated will be required to take action to remedy failures identified in the arrears review. This action comes as new data on mortgage lending, published today by the FSA, shows the number of consumers facing arrears and repossessions continues to increase...
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