Second charge lending/mortgages...& the FCA new approach ?

[Fred]

Given the FCA (Financial Conduct Authority) take over CCA regulations in April this year (2014) the subsequent & often volatile secured loan contracts to be merged with mortgage regulation...............makes me wonder how the hell this can happen without dramatic change in the systematic abuses afforded under the lack of interest from regulators.

Sub-prime lending or second charge whatever the term surely must not influence the market as a whole moreover be vigorously controlled so as not to adversely effect the mortgage market & its tight rules of conduct/principles.

I struggle to see at the moment where the EU mortgage credit directive/FCA mortgage market review & associated principles/applications/regulations will allow what has happened in the past & moreover allow business to prevail on alleged unfair terms as exists now in the UK.

I apologise as new to the site for asking, but are there any views on this from any serious involvement ?aw:

[Amethyst]

Re: Second charge lending/mortgages...& the FCA new approach ?

Sorry Fred completely missed your post. I think a complaint in to the FCA as soon as they start would be a start.

[Amethyst]

Re: Second charge lending/mortgages...& the FCA new approach ?

FCA / CONC / 7 / 7
CONC 7.7 Application of interest and charges

CONC 7.7.1
01/04/2014
FCA

When levying charges for debt recovery on customers in default or arrears difficulties firms should consider their obligation under Principle 6 to pay due regard to the interests of customers and treat them fairly.

[Note: paragraphs 3.1 and 3.10 of DCG]

CONC 7.7.2
01/04/2014
FCA

A firm must not claim the costs of recovering a debt from a customer if it has no contractual right to claim such costs.

[Note: paragraph 3.11b of DCG]

CONC 7.7.3
01/04/2014
FCA

A firm must not cause a customer to believe that the customer is legally liable to pay the costs of recovery where no such obligation exists.

[Note: paragraph 3.11a of DCG]

CONC 7.7.4 - GUIDANCE ONLY
01/04/2014
FCA

Where a firm has a contractual right to levy default charges, a regulated credit agreement must state the charges and the conditions for making the charge under, as the case may be, the Consumer Credit (Agreements) Regulations 2010 (SI 2010/1014) or the Consumer Credit (Agreements) Regulations 1983 (SI 1983/1553).

[Note: paragraphs 3.11c of DCG and 7.15 of ILG]

CONC 7.7.5
01/04/2014
FCA

A firm must not impose charges on customers in default or arrears difficulties unless the charges are no higher than necessary to cover the reasonable costs of the firm.

[Note: paragraphs 3.11 of DCG and 7.15 of ILG]

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

Amethyst, I did not read this reply until now so apologise no notification ? any how have sent big time complaint to FCA..........only response being your comments have been noted !

They are aware of PHSO from previous chase (OFT/Firstplus) reprimand plus other points of serious concern, drawn blank up to now............I believe the 26th means a full take over of second charge but hold out little hope over the two year +1 extra implementation asked for by our wonderful governance !

[Amethyst]

Re: Second charge lending/mortgages...& the FCA new approach ?

Hmmm, I've been speaking with someone publicity wise about major issues with second charge sub prime secured lending today - fancy sending me a copy of your FCA complaint so I can nick bits?

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

Most of the complaints have come from the OFT exchanges one has made & I have followed this up with the FCA, who seem at the moment to be exercising their rights not to respond individually; have sent you the last text/mail to them & personal acknowledgement.

Can not really say much more due to ongoing with PHSO/OFT & FoIA which FoIA holds little hope but trying for a public disclosure as opposed to just ones selfish, you never know.

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

In addition to writing to the FCA general complaints some consumers have also mailed their UTCCR dept which has a staged application...........so far the best response to interest rate clause; "yes we are very interested, this is the kind of thing we are looking for" all the others have automated fob offs.

In short I don't think they know what to do & will consequently hold us at arms length, I aim to contact again after 26th this month to see if one can get over the "front" they have put up but I can see why they want another three years for consultation

[Ruby]

Re: Second charge lending/mortgages...& the FCA new approach ?

I have just posted a copy of a letter that was sent to me by Arrow Global (They bought the secured loan off Advantage) to the FCA.

Whether the FCA make paper aeroplanes out of the photographic evidence and correspondence remains to be seen. The loan is unregulated and I feel for far too long now I have been taken for a ride.

Sometimes being an old fashioned pest works, well I hope it does.

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

I have just posted a copy of a letter that was sent to me by Arrow Global (They bought the secured loan off Advantage) to the FCA.

Whether the FCA make paper aeroplanes out of the photographic evidence and correspondence remains to be seen. The loan is unregulated and I feel for far too long now I have been taken for a ride.

Sometimes being an old fashioned pest works, well I hope it does.

Have written to them numerous times now & have an ongoing case with the defunct OFT, have today put a complaint in to the FCA for lack of action on this very subject but cant help thinking my previous OFT case is keeping them quiet..............what a horrible mess this is ! :tinysmile_hmm_t2:

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

Just for a nice regulatory topping the FOS is ruling previously judged/questionable terms as "fair" when in actual fact they can only rule the terms match the behaviour...............they even stated in one of my complaints that rates (interest) had varied up/down during the term, they had not moreover gone up five times !...................this verdict was from a senior ombudsman !

Any one reading the FOS decision posted would assume entirely the "wrong thing" as this was fundamental in the case but not stated erroneous ! :tinysmile_hmm_t2:

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

Hmmm, I've been speaking with someone publicity wise about major issues with second charge sub prime secured lending today - fancy sending me a copy of your FCA complaint so I can nick bits?

I am finding entries on this subject all over the site, is it possible to group this activity/posts given how important this is & what needs to done about it ? apologise am guilty myself over random posts :tinysmile_twink_t2:

[Fred]

Re: Second charge lending/mortgages...& the FCA new approach ?

I have just posted a copy of a letter that was sent to me by Arrow Global (They bought the secured loan off Advantage) to the FCA.

Whether the FCA make paper aeroplanes out of the photographic evidence and correspondence remains to be seen. The loan is unregulated and I feel for far too long now I have been taken for a ride.

Sometimes being an old fashioned pest works, well I hope it does.

How far do you intend going with this ?