Calls for fair treatment of consumers in arrears

Calls have been made on lenders to treat homeowners in arrears fairly.

Speaking at the Council of Mortgage Lenders` (CML) Annual Conference, Jon Pain, the Financial Services Authority`s retail markets managing director, said that current market conditions make this issue particularly pertinent.

He stated: "We have recently sent a ... letter to the chief executives of all lenders to remind them of their responsibilities. We want each lender to look at their internal arrears policy to ensure it aligns with the mortgage rules and treating customers fairly."

Lenders should also review their current practices to ensure that corners are not being cut and should only take repossession action against those who have fallen behind on their mortgage repayments when all other "reasonable attempts" at a resolution have failed, he added.

Recently, the CML released figures which revealed that the percentage of mortgages at least three months in arrears had increased from 1.33 per cent at the end of June to 1.44 per cent at the end of September.