3 April 2007
Several of the UK's leading lenders for secured loans have been debating whether or not the industry needs a separate regulator.
Currently, secured loan companies can turn to the Association of Finance Brokers (AFB) and the Finance Industry Standards Association (Fisa) for representation and for consumers to refer to when standards are missed, but several lenders are now calling for clearer legislation so that the roles of both these bodies (and a third if it was needed) are clear.
Phil Whitehouse from Pink Home Loans told mortgagesolutions-online.com that more transparency would benefit customers and lenders.
He also said that however the industry was regulated, brokers needed to "embrace the philosophy of treating customers fairly by finding the best deal for their clients and avoiding high commissions that are often funded by large fees charged to the end user and the sale of PPI".
Steve Teague from Click admitted that the industry had suffered a negative perception in some quarters and that there was a lack of understanding within the public of how it operates.
"The UK finance industry has experienced huge regulatory change over recent years and must expect more in the future. The secured loans industry has done itself a disservice by not being represented properly previously," he added.