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Mortgage brokers failing to detail charges

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  • Mortgage brokers failing to detail charges

    The Financial Services Authority examined the literature of 100 small lenders, and found significant errors in the details of charges and other relevant information in a quarter of them:

    Too many small mortgage lenders and brokers are misleading customers about their fees and charges, the Financial Services Authority (FSA) has warned.

    A survey by the regulator found that more than a quarter gave out key facts illustrations (KFIs) to their customers that contained significant mistakes.

    However, the FSA said that overall the quality of mortgage information had improved during the last year.
    However, apparently it used to be a lot worse last year:

    The survey was carried out by examining the literature of a sample of 100 lenders and brokers, and by talking to the firms involved.

    Last year's survey, based on a mystery shopping exercise, had found a particularly poor state of affairs, with lenders and brokers routinely breaking the rules.

    As well as continuing problems with KFIs, this latest survey found that half of the IDDs published by brokers still had five or more errors in them.

    The FSA said that was inadequate - even though it was an improvement on last year's survey, which found an error rate of 80%.

  • #2
    I think for the most part people dont realise they are breaking the rules ...if the FSA only made things alot clearer then maybe lenders and brokers could too!