While some have kept their exit fees, others have simply rebranded them or incorporated them into arrangement fees – hardly TCF. As usual, it is the borrower who ends up paying as they are lulled into a false sense of security about charges, and it is left to the broker to explain the facts to them.
As your story about Paul Lewis’s call (MI, 28 July 2007) for arrangement fees and exit fees to be scrapped altogether showed, there is no need for these charges to be imposed on borrowers who are already financially struggling. The sooner lenders are more honest and pay attention to the TCF principles the better.
Although the FSA’s statement proved that it is taking action, there is not enough being done. AMI should represent brokers and bring lenders into line.
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