The FSA has moved to ban exploitative advertising and high-pressure sales techniques in the sale and rent back (SRB) market.
It has published new proposals, due to come into effect on 30 June 2010, to improve upon on the FSA’s interim regulation which started on 1 July 2009.
The new proposals include a cooling-off period to give consumers more time to make decisions and the banning of cold calling and prohibition of firms from dropping promotional leaflets through letter boxes.
The regulator is also looking to ban the use of emotive terms like ‘fast sale’, ‘mortgage rescue’ and ‘cash quickly’ in promotional literature.
Ed Harley, FSA head of mortgage policy, said: “Sale and rent back can be the right solution for some consumers