FSA criticised by Treasury Committee over arrears approach

The Treasury Committee has told the FSA to take robust stance on what it sees as unfair arrears charges

This call came as the Treasury Committee released its Report entitled Mortgage arrears and access to mortgage finance, focusing on households affected by the recession, struggling with mortgage arrears and/or at risk of repossession

The Committee acknowledges that many mainstream lenders are taking pro-active steps to support consumers in mortgage difficulties, but expresses concern at the lack of flexibility and forbearance shown by some lenders in the sub-prime, specialist and second charge sectors towards homeowners in arrears

John McFall, Chairman of the Committee said: “The Committee was extremely concerned by evidence that many sub-prime