Banks respond to FSA letter on customers in arrears

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The Financial Services Authority has today written to advise mortgage lenders of the need for fair treatment of customers in arrears.

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Re: Banks respond to FSA letter on customers in arrears

Banks respond to FSA letter on customers in arrears


28/11/2008

The Financial Services Authority has today written to advise mortgage lenders of the need for fair treatment of customers in arrears.

British Bankers’ Association Chief Executive Angela Knight said:
“Too often the term ‘bank’ is used as shorthand for a mortgage lender without distinction.
“Banks are by far the biggest providers of mortgages and are working hard to ensure as many of their customers as possible are protected against the downturn. Repossession is the absolute final step for a bank, once all other options to resolve the customer’s financial problems have been exhausted.
“The banks are committed to treating their customers fairly, and have made public commitments to proactively approach customers they feel might be headed for financial trouble before problems arise. They have dedicated debt counselling teams, offer one-to-one assistance to customers who need it and promise to deal sympathetically and positively with any customers in financial difficulty.”
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Notes to Editors:

Note to editors:
The BBA Annual Abstract of Banking Statistics shows that 27,100 properties were repossessed by lenders in 2007; 11,897 of which were repossessed by the major British banking groups. These banks accounted for 71.4 per cent of total mortgage lending in 2007.
Contact our press office on 020 7216 8989 or visit us at www.bba.org.uk.
Out out hours contact: 020 7216 8888.