The Association of Finance Brokers is to introduce a new trade body, relating to secured loan brokers. It will provide more information, enabling the customer to make a more informed choice. This will ensure that all customers are treated fairly when applying for a loan.
Our view
The Financial Services Authority is already watching this sector with interest given that mant finance brokers sell 'lump sum' upfront premium payment protection insurance alongside a loan.
Whilst the area of secured loans is not regulated, mortgages and insurance is. Expect some hefty fines simila to that levied on Loans.co.uk last week of £445,000.