The Council of Mortgage Lenders says that broadly agrees with the proposals on arrears handling put forward by the Financial Services Authority on Tuesday.
However, the lender body says it will need to review the practical implications to ensure there are no unintended consequences.
It says that at first sight it is concerned that the FSA’s proposals on how to extend the approved persons regime may be disproportionate for lenders – the costs will far exceed potential benefits. Within lenders there is typically a high level of consumer recourse to the institution over time, involving a range of functions, not just the original salesman or adviser.
The CML will now consider the proposals in more detail, and aims to provide a “constructive response”” to the proposals before the end of April deadline
