The Inside Edge
When the Financial Services Authority (FSA) recently published it’s consultation paper on the proposed changes to it’s approach to regulating the mortgage market outlining a ‘more intrusive approach’ we thought this howling at the moon definately forebode some serious changes in the nature of the beast. We were right, the FSA has now done more than bare it’s new teeth and took a bite out of lender GMAC-RFC with a £2.8m fine.
The specialist lender has been punished for levying unfair charges on customers who fell into arrears and has become the recipient of the highest mortgage related fine imposed by the regulator. On top of the fine GMAC-RFC have been ordered to pay back up to £7.7m to over 46,000 unfairly charged customers.
In an FT.com article today, Margaret Cole, the director of enforcement and financial crime at the FSA, said the GMAC case was “an excellent example of what the FSA’s more intrusive approach can achieve for consumers”.
Lenders be wary, there’s a full moon approaching tonight!