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Salans calls for sale and rent back Code
21 May, 2008
As the Office of Fair Trading launches a market study into the sector, Salans has urged providers of sale and rent back to sign up to the much talked about voluntary Code of Conduct, in order to demonstrate to the OFT their commitment to best practice.
Caroline Havers, partner at Salans, said: “The launch of a market study into sale and rent back comes at a good time for the industry. With repossessions on the increase, we believe that sale and rent back gives borrowers an alternative option to losing their home.
“However, we urge the OFT to be open-minded about the sector and consider the advantages these schemes can offer to those borrowers facing repossession. It should not just judge the sector by the actions of those unscrupulous providers who are currently giving sale and rent back a bad name.”
The OFT has said that it intends to take a detailed look at the characteristics of sale and rent back and consider whether existing consumer protection legislation is sufficient and effective. It plans to contact trade bodies, providers of sale and rent back arrangements, consumer groups and other organisations associated with the industry.