• From The BBC:

    A committee of MPs has attacked the way some mortgage lenders levy high charges on customers who fall into arrears.The Treasury Committee said this practice was “intolerable” and demanded that the Financial Services Authority (FSA) put a stop to it. The committee also said some lenders were breaking the rules by using repossession as a first, rather than last, resort with borrowers in arrears. The FSA said it would publish proposals this autumn after a widespread review. “The FSA continues to take a robust position with firms as soon as we have evidence of wrongdoing and also to ensure borrowers are treated fairly throughout the lifetime of their mortgage,” said a spokeswoman. But the MPs in their report said they were shocked at what they perceived to be the FSA’s “leisurely” approach to enforcing the existing rules governing mortgage lenders. “We have heard evidence of charges as high as £35 from some lenders for simply sending a letter or making a phone call, and charges as hi…

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    Posted by Jon @ 3:50 pm

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