15 September 2008
A consultation has been launched on the regulation of secured loans in a bid to ensure that consumers are treated fairly and are adequately protected. Secured loans are long-term loans which use the borrower's property as security. The amount that can be borrowed and the annual percentage rate will depend on the value of the property, the borrower's personal circumstances and their ability to repay. The Association of Finance Brokers (AFB) has published a white paper setting out the possible regulatory options for the secured loans industry and is inviting intermediaries to express their opinions on how best to proceed. Robert Sinclair, director of the AFB, said secured lending has a role to play in the financing of debt, but the implementation of the European Consumer Credit Directive is likely to bring many changes to the regulatory landscape. "It is vital that we take a pro-active approach to regulation of our industry to ensure the best outcome for brokers, lenders and, most importantly, consumers," he remarked. Figures released recently by GE Money Home Lending revealed that in the last 18 months, 3.4 million consumers have had their applications for first mortgages, remortgages, secured loans and personal loans turned down.
© 2008 Adfero Ltd
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