New report calls for regulator to step in on mortgage help

17/07/2009

The Financial Services Consumer Panel (FSCP) has called for increased protections for bank customers in its latest annual report.

According to the study, the economic downturn means that the financial watchdog should take "strong action" on mortgage lenders who make it more difficult to customers to keep up with repayments.

Repossessions numbers are expected to rise sharply to hit 65,000 in the UK this year, as a result of the credit crunch.

However, the FSCP report praised the Financial Services Authority (FSA) for progress made on its treating customers fairly pledges over the past year.

In particular, the regulator's willingness to take on supervision of outcomes for consumers - rather than having the financial firms themselves tell them what to do - was welcomed.

Adam Phillips, FSCP chairman, said: "The financial crisis has created great challenges for the industry, the FSA and consumers. But in the end, it is consumers, both as paying customers and taxpayers, who are bearing the cost.

"It is essential to maintain the stability of the financial system, but the FSA also has a statutory objective of consumer protection. It must rise to the challenge of ensuring that the financial services industry really does treat its customers fairly."

Tags; Housing Debt and Bills, Young Family Finances,

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