OFT imposes requirements on Swift Advances :)

[Legal Beagles]

The OFT has announced that sub-prime lender Swift, trading as Swift Advances plc and Swift Securities Limited, must improve its lending and collections practices or risk losing its credit licences.

More...

Download the detailed requirements on Swift Advance plc (pdf 48kb) and Swift Securities Limited (pdf 50kb).

[Caspar]

Re: OFT imposes requirements on second charge lender

Excellent. Very slightly off subject, but if anyone on here had subprime second mortgages with Kensington and had unfair charges applied during the years they were penalised for, whack in a claim. We did and got a good settlement back.

Technically it's only for first mortgages, but worth a go for the sake of a stamp.

[The Debt Star]

Re: OFT imposes requirements on second charge lender

Caspar, do you think there is any merit in seeking redress from the IFAs that sold Kensington mortgages as well?

[Caspar]

Re: OFT imposes requirements on second charge lender

I take the attitude if you don't ask, you won't get. I wasn't supposed to be able to claim but I did well out of them. What harm is there in trying to claim for someone recommending a company that was penalised for their unfairness. I would call that poor advice.

Make sure it falls within the relevant years mind.

[The Debt Star]

Re: OFT imposes requirements on second charge lender

There would have to a loss and which the offending mortgagor won't / can't recompense?

[Amethyst]

Re: OFT imposes requirements on Swift Advances

Excellent. (well.... better than nothing)

The OFT today announced that sub-prime lender Swift, trading as Swift Advances plc and Swift Securities Limited, must improve its lending and collections practices or risk losing its credit licences.
An OFT investigation found Swift was giving secured loans to customers with poor credit histories or limited access to credit without:

• checking whether they could afford the loan
• verifying their income
• taking account of their other financial commitments and personal circumstances
• fully checking the information provided in the application.

Secured lending is considered to be high risk by the OFT because borrowers are at risk of losing their home if they default on a loan.
The OFT also uncovered evidence in some cases that Swift failed to fully explain the charges that could be incurred if customers fell into arrears and failed to exhaust alternative options before taking borrowers to court.
As a result, the OFT has imposed a set of requirements on Swift, which ensures it must:

• carry out proper assessments of a borrower's ability to repay the loan without undue hardship
• only take steps to repossess a borrower's home as a last resort
• be transparent about their charges and when they apply.

David Fisher, OFT Director of Consumer Credit, said:
'Credit businesses must lend responsibly - failure to do so can have a very serious impact on borrowers. We require Swift to significantly improve the way it carries out its business. If they fail to comply with these requirements, they will face further enforcement action.'
NOTES

1. Download the detailed requirements on Swift Advance plc (pdf 48kb) and Swift Securities Limited (pdf 50kb).
2. Under the Consumer Credit Act 1974, where the OFT is dissatisfied with any matter in connection with a business, a proposal to carry on a business or any other conduct by a licensee, associate or former associate, the OFT may impose 'requirements' on the licensee. Requirements may require a business to do or not to do (or to cease doing) anything specified to address the OFT's dissatisfaction, or securing that matters of the same or a similar kind do not arise.
3. The requirements imposed may be subject to appeals to the General Regulatory Chamber of the First Tier Tribunal. Details of all recent OFT actions are on the public register.
4. A breach of a requirement can lead to a fine of up to £50,000 and/or be grounds for revocation of a consumer credit licence.
5. The OFT has issued specific guidance to businesses operating in the second charge lending market, the current guidance is 'Second charge lending - OFT guidance for lenders and brokers', which was issued in July 2009. Prior to the issue of this guidance, the Non-status Lending Guidelines for Lenders and Brokers was the relevant guidance document.
6. The OFT's Debt collection guidance issued in 2003 also applies to the second charge lending market. In March 2011 the OFT announced that it is consulting on revised debt collection guidance - the consultation closed on 2 June 2011.