Debt advice: Sale and rent back 'viable alternative'

01/02/2010

The Financial Services Authority (FSA) has issued new guidelines to protect consumers in the sale and rent back (SRB) market.

Several measures have been implemented to ensure that people have all the facts needed when considering SRB.

A ban on high-pressure sales techniques, a 14-day cooling-off period and ensuring that the customer is clearly aware of the risks involved are high among the FSA's priorities.

Kevin Still, director of EuroDebt, welcomed the new measures.

He commented: "EuroDebt does recommend some clients to see a properly authorised sale and rent back advisor where the circumstances look appropriate alongside a debt solution to deal with their unsecured debt.

"The sale and rent back advisor ensures all risks are clearly signposted to the customer, through FSA literature, during the sales process."

Mr Still added: "Sale and rent back can be a viable alternative for homeowners facing re-possession and struggling with other debt problems."

Posted by Jim Mead

Tags; Housing Debt and Bills,

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