BSA urges 'robust supervision' on arrears handling

Date:Friday 30th April 2010
Author: Susanna Kavka

The Building Societies Association (BSA) has insisted that new proposals outlined by the Financial Services Authority (FSA) must be supported by a strong supervisory framework.

In January, the FSA announced a range of new guidelines aimed at ensuring that indebted mortgage holders are treated fairly by financial institutions, but the BSA says more should be done to protect consumers.

BSA head of mortgage policy Paul Broadhead said in a statement that the body supported the rule changes, but added: "Rules alone will not stop miscreant firms treating borrowers unfairly. It is crucial that the supervision of firms is robust."

However, Mr Broadhead emphasised that the majority of lenders are reputable and fair in their treatment of borrowers, but warned that certain aspects of the reforms could simply cause confusion and require swift amendment.

Research conducted by GfK NOP for the organisation discovered that mutual firms have "consistently outperformed" PLCs across a range of indicators.