MPs accuse lenders of profiting from struggling families

The Treasury Select Committee has also criticised the FSA for taking a ‘leisurely approach' to firms failing to treat customers fairly on mortgage arrears. The committee says the upward trend in arrears and repossession is likely to continue for some time, and says some mainstream lenders have made good progress in supporting customers through difficult times. However, it accused sub-prime, specialist and second-charge lenders of operating with a lack of ‘flexibility and forebearance' when it came to customers who were struggling to pay their mortgages. It noted some lenders were o...