Menu
13/02/2009
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending.
Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home. Defaulting on a second charge loan can ultimately lead to repossession. Firms offering such loans must be licensed by the OFT.
The consultation follows a government review of arrears and repossession policies and practices in the second charge sector. The review did find examples of good practice within the market but, as with other lending markets, there is scope for spreading good practice more widely.
The draft guidance covers a range of issues such as customer care, advertising and selling techniques, contractual terms and conditions, and practices around managing arrears or defaults. It sets out the standards of behaviour that the OFT expects from those businesses engaged in second charge lending.
The guidance is designed to complement existing OFT guidance for lenders. Responses to the consultation on this guidance will also be taken into account as part of the wider irresponsible lending project being undertaken by the OFT. Guidance on irresponsible lending is to be published in autumn 2009.
The deadline for responding to the consultation is 8th May.
(JM/BMcC)
Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home. Defaulting on a second charge loan can ultimately lead to repossession. Firms offering such loans must be licensed by the OFT.
The consultation follows a government review of arrears and repossession policies and practices in the second charge sector. The review did find examples of good practice within the market but, as with other lending markets, there is scope for spreading good practice more widely.
The draft guidance covers a range of issues such as customer care, advertising and selling techniques, contractual terms and conditions, and practices around managing arrears or defaults. It sets out the standards of behaviour that the OFT expects from those businesses engaged in second charge lending.
The guidance is designed to complement existing OFT guidance for lenders. Responses to the consultation on this guidance will also be taken into account as part of the wider irresponsible lending project being undertaken by the OFT. Guidance on irresponsible lending is to be published in autumn 2009.
The deadline for responding to the consultation is 8th May.
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
05 July 2012
New Guidance On Rape Charges Won By Victims Family
The family of a nurse killed by her former partner while he was on bail for raping her has won a campaign to change legal guidance, meaning murderers who commit rape can be charged for both.
New Guidance On Rape Charges Won By Victims Family
The family of a nurse killed by her former partner while he was on bail for raping her has won a campaign to change legal guidance, meaning murderers who commit rape can be charged for both.
11 March 2004
Consumers and lenders could do more to consolidate debts: OFT
Better financial awareness among consumers, and clear, accurate and relevant information from credit providers are required to make the use of debt consolidation fairer and more transparent, according to a study from the Office of Fair Trading (OFT) published today. The OFT has estimated that, in 2002, £32 billion of unsecured lending and £8.
Consumers and lenders could do more to consolidate debts: OFT
Better financial awareness among consumers, and clear, accurate and relevant information from credit providers are required to make the use of debt consolidation fairer and more transparent, according to a study from the Office of Fair Trading (OFT) published today. The OFT has estimated that, in 2002, £32 billion of unsecured lending and £8.
24 February 2012
OFT Launches Payday Lending Review
The Office of Fair Trading (OFT) has today launched an extensive review of the payday lending sector. This is in part prompted by concerns that some payday lenders may be taking advantage of people in financial difficulty. The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending.
OFT Launches Payday Lending Review
The Office of Fair Trading (OFT) has today launched an extensive review of the payday lending sector. This is in part prompted by concerns that some payday lenders may be taking advantage of people in financial difficulty. The review will investigate compliance with the Consumer Credit Act and the OFT's guidance on irresponsible lending.
04 March 2013
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
27 June 2013
Competition Inquiry For Payday Loan Industry
The Office of Fair Trading (OFT) has referred the payday lending industry to the Competition Commission over concerns it has about "deep-rooted problems" with the way competition works.
Competition Inquiry For Payday Loan Industry
The Office of Fair Trading (OFT) has referred the payday lending industry to the Competition Commission over concerns it has about "deep-rooted problems" with the way competition works.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
