FSE 2013: FCA will look into term changes
Both the Bank of Ireland and, most recently, the West Bromwich Building Society have changed their terms and conditions to increase the rates which they apply to their tracker mortgages.
Linda Woodall, director of supervision at the FCA, said that the regulator planned to launch a discussion paper in the Autumn to address the issues which such actions have taken.
She also warned lenders not to see the fact that the West Bromwich and Bank of Ireland had been able to make such changes as providing them with the opportunity to follow suit.
Woodall said: “We deal with such cases on a case by case basis. Our response to the West Bromwich’s change does not mean there will be leniency for others.
“This is an issue in the industry in regards to the changing of terms and we will look into it.
“We intend to asses if the rules are suitable and we will look to change our remit should things be outside it that need addressing.
“The FCA recognises the problem.”
Woodall would not comment when asked if the FCA had prior knowledge of the West Bromwich’s decision to change its rate.