Commenting, Fiona Hoyle, head of consumer finance at the Finance & Leasing Association (FLA), said: "Second-charge lenders are not opposed to a move to FSA regulation, but customers are already well protected by the recently-strengthened OFT regime. Moving all existing business to a new regulator will create inevitable costs and disruption. The potential for customer confusion must be avoided."
Commenting on the changes to the Civil Procedures Rules, which will promote better contact between first and second charge lenders in repossession cases and avoid duplicate costs for consumers, Hoyle said: "The FLA has long campaigned for better contact between first and second charge lenders in repossession cases. This will reduce duplicate costs for consumers already in financial difficulty and ensure homeowners are treated fairly."
Commenting on the introduction of an income verification service for mortgage lenders, Hoyle said: "We have been calling for discussions on the use of HMRC data to help to verify a borrower's income. The Budget announcement on this is important for responsible lending across not only the mortgage market but all credit markets."
