Home
NewsGreater regulation of sale and rent back schemes needed, expert says
Greater regulation of sale and rent back schemes needed, expert says
Sales and rent back providers need greater regulation, according to one industry practitioner.
Such schemes enable people to sell their properties - usually at a discounted price - and rent it back from the new owner.
Commenting on the sector, Catherine Hearnden, director of MyMortgageDirect, claimed there is a danger that some firms will get "on the bandwagon" and rip consumers off.
She made her comments following an announcement by the Financial Services Authority (FSA) that it is setting out a number of measures aimed at giving greater protection to vulnerable consumers intending to use sale and rent back schemes.
For example, the proposals include a provision for a cooling-off period to give people more time to make decisions.
Responding to the development, Ms Hearden said: "I'm not sure whether it [should be] an FSA thing or whether it should just be consumer protection but they certainly need some sort of protection."
06/10/2009 15:32
News category: