Lenders have welcomed the FCA’s decision to launch an enquiry into remediation proposals for borrowers.
Responding to the regulator’s move to review processes for the treatment of customers with mortgage arrears, the Council for Mortgage Lenders (CML) said it was fully committed to ensuring past cases are reviewed appropriately, and that it would respond formally by the consultation deadline set in January.
Paul Smee, CML director general, said: “Those lenders who used the arrears calculation methodology now identified as problematic did so in good faith, believing that they complied with the rules and were acting in customer interests. They are fully committed to delivering fair outcomes for all customers, past and present.”
“Customers do not need to do anything. Once lenders have digested the regulator’s consultation and determined the most appropriate way to undertake the expected remediation, they will be in touch directly with affected customers.”
Ashley Ilsen (pictured), head of lending at development finance lender Regentsmead, said: “I don’t think it will have too much of an impact on our business, as our emphasis as it stands is very much on transparency.”
“As a development lender, our checks are extremely rigorous, do we see very few instances of arrears.”
“On the few occasions it does happen we seek to trace and increase the facility. We’re really keen to make sure these instances are few and far between.”
“We’d certainly agree that the FCA enquiry is a positive thing. Lenders need to be open and demonstrate they’re doing the right thing; anything that increases this clarity is very positive.”
The CML said lenders would pro-actively identify and contact affected customers to ensure any compensation due to them as a result of the issue is paid.