An increasing number of lenders are saying they will not deal with unregulated packagers in the future and the FSA has also confirmed it will reject applications for authorisation from ‘pure’ packagers who do not carry out any regulated activities.
John Lee, Head of Sales & Marketing at Genesis, said: “The writing has been on the wall for packagers for some time and it has become increasingly apparent that many lenders will want to distance themselves from any organisation which is not fully regulated.
“Packagers cannot buck this trend and need to take action now if they want to stay in business. This is not the time for packagers to bury their heads in the sand and hope the problem will go away, because it won’t.”
