At a Treasury Select Committee follow-up inquiry on mortgage arrears today in London, John McFall, chairman of the committee, questioned whether the FSA was right to refuse to name and shame those firms that have been referred to enforcement.
Dominic Lindley, principal policy adviser at Which?, said he believed the FSA were procrastinating.
He said: “The enforcement processes have been proceeding at a very slow pace. We have had one fine but there are still six firms that have been referred to enforcement.”
The FSA revealed last June that four firms had been referred to the regulator’s enforcement division with several more assessed for referral over their handling of mortgage arrears and repossessions.
As a result, GMAC-RFC was fined £2.8m in October and in November the FSA revealed that another five firms were being investigated over arrears handling.
Today’s follow-up inquiry focused on households affected by the recession and struggling with mortgage arrears and at risk of repossession.
Reprsentatives from Shelter, Which?, Citizens Advice, the CML, the Finance and Leasing Association, the BSA and the FSA attended.
