‘Learning curve’ for bad debt mortgage providers
Providers of bad debt mortgages are facing a steep learning curve as they seek to comply with regulation, it has been claimed.
The Financial Services Authority (FSA) has recently undertaken an investigation of independent financial advisers (IFA) and bad debt mortgage providers.
David Elms, chief executive of industry body IFA Promotion, suggests that those firms identified as failing to meet required standards should learn quickly if they are to provide an adequate service to their customers.
“It seems to me that there is still some learning to go on as far as the mortgage sector is concerned,” he advises.
Meanwhile, a spokesperson for the FSA suggests a sub-prime mortgage may be suitable for one in five Britons with bad debt problems.
Robin Gordon-Walker of the FSA announces that “in 80 per cent of cases brokers were unable to show how the recommended sub-prime product met the customer’s needs”.
Consumers seeking an alternative to such mortgages may wish to undertake a process of bad debt recovery to improve their financial situation.
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