Mis-sold Mortgage Claims > Mortgage News
Lenders continue to face fines for not Treating Customers Fairly
Tue, 21 Dec 2010
Lenders continue to face fines from the Financial Services Authority (FSA) for not treating customers fairly when they are struggling to make mortgage payments and have been in arrears. Specialist and sub-prime lenders, Kensington Mortgage Company, GMAC-RFC, and Redstone Mortgages have all been fined by the FSA and, are now likely to be joined by Swift Advances who are being investigated for there treatment of customers in arrears . It has been reported that there are another five firms undergoing an FSA investigation for similar breaches.

New rules introduced by the FSA this summer have made lenders more accountable in how they treat borrowers. Swift Advances, however, is reported to have breached regulations in 2009 and has also had its lending practices questioned. It has also been confirmed that a number of customers have suffered financial loss due to an "anomaly in its administration," this has resulted in higher charges for the early settlement or redeemed accounts.

Swift Advances is regulated under the Consumer Credit Act (CCA) in respect of second charge lending, often referred to as loans, and Swift 1st is regulated by the FSA.

The FSA refused to comment on the matter and it is not yet known if any action or fines will be imposed. Swift has confirmed that they are cooperating fully with the investigation and have made allowances for any redress and fines.
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