Kensington to change “unfair” terms
The FCA said it had concerns about the agreement, which affects more than 6,000 customers, as some of the terms were likely to be unfair under its consumer contracts regulations.
The regulator said that the “terms provided the firm with too much discretion”
It was especially concerned that the agreement allowed the firm to demand full repayment of the outstanding mortgage immediately if there was failure to pay a single monthly repayment or any other money was due, if any term was breached or if there was a change in customer’s circumstances.
The agreement also allowed the lender to raise mortgage repayments in the event that the original monthly mortgage payments were found to be insufficient to clear the debt by the end of term.
The regulator said that Kensington had acknowledged that two of the terms were not expressed in “plain, intelligible language” and as such it agreed to not to enforce “a number of terms”.
Kensington Group gained a majority stake in Money Partners back in 2006 before selling its stake to Goldman Sachs in 2008.