buytoilet Posted February 19, 2008 Share Posted February 19, 2008 Unscrupulous mortgage lenders are rushing to repossess properties to avoid potential mis-selling allegations, the regulator’s key consumer body today warned. These lenders were clearly breaking rules on treating customers fairly (TCF), according to the Financial Services Authority consumer panel. Under existing rules court can stay repossession proceedings while the ombudsman makes a ruling, but the panel said it was concerned some lawyers and householders were unaware of the rules designed to protect them. Citywire Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted February 19, 2008 Share Posted February 19, 2008 I don't understand how a quick repossession would negate or mitigate a mis-selling claim: if anything it would justify and exacerbate it. Someone who was repossessed could argue that the hasty repo is evidence that the lender knew they were extending a loan that wasn't viable in the long term, let it run until the borrower got into difficulties and then the moment that happened, tried to close the book on the account quam celerime. However, that point aside, I can't understand why anyone is surprised that lenders want to foreclose ASAP once they're convinced that the borrower can't keep up their payments. If the asset the loan is secured on is declining in value (i.e. as HPs fall), it's common sense to want to liquidise it as soon as you can, isn't it? The longer the lender waits, the more money they stand to lose. Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted February 19, 2008 Share Posted February 19, 2008 Unscrupulous mortgage lenders are rushing to repossess properties to avoid potential mis-selling allegations, the regulator’s key consumer body today warned.These lenders were clearly breaking rules on treating customers fairly (TCF), according to the Financial Services Authority consumer panel. Under existing rules court can stay repossession proceedings while the ombudsman makes a ruling, but the panel said it was concerned some lawyers and householders were unaware of the rules designed to protect them. Citywire So borrowers (customers) who lied to buy still deserve to be treated fairly? How about "Treating Lenders Fairly" ? Surely NR et al deserve better than to be ripped off by no income liars Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 19, 2008 Share Posted February 19, 2008 I don't understand how a quick repossession would negate or mitigate a mis-selling claim: if anything it would justify and exacerbate it. Someone who was repossessed could argue that the hasty repo is evidence that the lender knew they were extending a loan that wasn't viable in the long term, let it run until the borrower got into difficulties and then the moment that happened, tried to close the book on the account quam celerime.However, that point aside, I can't understand why anyone is surprised that lenders want to foreclose ASAP once they're convinced that the borrower can't keep up their payments. If the asset the loan is secured on is declining in value (i.e. as HPs fall), it's common sense to want to liquidise it as soon as you can, isn't it? The longer the lender waits, the more money they stand to lose. yep, these unscrupulous lenders are covering their own backs. So much for posters here saying its not in the banks interest to possess early. Its gonna happen, its gonna happen more quickly and its gonna happen in many many many more cases than the CML would like Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted February 19, 2008 Share Posted February 19, 2008 Unscrupulous or just unsentimental? Quote Link to comment Share on other sites More sharing options...
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