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FSA concerned about referrals to claims management companies
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Clifford Chance LLP
Rosalind Gray
United Kingdom
November 16 2009
On 11 November, Lesley Titcomb (Director of Small Firms and Contact Centre) spoke to mortgage intermediaries and, on 13 November, Jon Pain (Managing Director Retail Markets) spoke to mortgage lenders, about the mortgage market review (MMR). They both recapped the content of the FSA's discussion paper on the MMR and promised that the FSA was not intent on stopping self-employed people from getting mortgages or requiring lenders to ask potential borrowers how much they spend on cigarettes and alcohol. Lesley Titcomb mentioned that one area that many people have missed is the FSA's proposal to ban the practice of lender charges, such as set up fees, and intermediary fees being rolled up into the loan. Lesley Titcomb also took the opportunity to raise a concern that mortgage intermediaries may be failing to consider their data protection obligations and failing to perform proper due diligence when referring clients to claims management companies (who have apparently been approaching intermediaries for introductions).
http://www.fsa.gov.uk/pages/Library/.../1111_lt.shtml and http://www.fsa.gov.uk/pages/Library/.../1113_jp.shtml
View original document
| Send to colleague | Print Clifford Chance LLP
Rosalind Gray
United Kingdom
November 16 2009
On 11 November, Lesley Titcomb (Director of Small Firms and Contact Centre) spoke to mortgage intermediaries and, on 13 November, Jon Pain (Managing Director Retail Markets) spoke to mortgage lenders, about the mortgage market review (MMR). They both recapped the content of the FSA's discussion paper on the MMR and promised that the FSA was not intent on stopping self-employed people from getting mortgages or requiring lenders to ask potential borrowers how much they spend on cigarettes and alcohol. Lesley Titcomb mentioned that one area that many people have missed is the FSA's proposal to ban the practice of lender charges, such as set up fees, and intermediary fees being rolled up into the loan. Lesley Titcomb also took the opportunity to raise a concern that mortgage intermediaries may be failing to consider their data protection obligations and failing to perform proper due diligence when referring clients to claims management companies (who have apparently been approaching intermediaries for introductions).
http://www.fsa.gov.uk/pages/Library/.../1111_lt.shtml and http://www.fsa.gov.uk/pages/Library/.../1113_jp.shtml
