A Financial Services Authority shopping exercise has found that more than half of mortgage firms are still not complying with rules on the provision of disclosure documents, nine months after it was brought in as regulation. Findings show that 55% of the 82 visits to 62 mortgage lenders and brokers found non-compliant behaviour. The mystery shopping exercise was taken to establish whether firms were providing two key features documents required by legislation to inform customers about the type of service a firm provides and about cost, features and risk of a particular mortgage proposal. The FSA are to continue monitoring these firms distribution of these documents through further supervision work, and will take appropriate action if necessary.
Our view
Shut them down! There is no excuse for firms not complying with the rules. Perhaps this is too harsh ......send them to our Compliance and Training Division for some help. We have to comply ....... so should they. Our key facts documents are at the bottom of this page. You can read about, in the required format, how much we charge for our services and how we are paid.