The research by RAMP and its members has identified a significant number of regulated firms still falling foul of the new requirements for mortgage advertising. The review also included national and regional newspapers, magazines, television, radio and websites.
The common failings included: APRs not being quoted where impaired credit mortgages were being promoted; risk warnings either totally missing or incorrect wording used; regulatory information not being sufficiently prominent in the advert; broker fees not being transparent; and websites not holding copies of the firms’ Initial Disclosure Documents where customers can complete enquiry forms online.
Nick Battersby, compliance director at RAMP, said: “Urgent action is now required to bring the culprits to account as any grace period must have expired.
“Intermediaries that are breaching the rules are enjoying a greater competitive edge and will prosper at the expense of a firm that is trying its best to get things right.”
David Copland, sales and marketing director at Pink Home Loans, commented: “It does stick in your throat when you bend over backwards to make sure you are compliant and you see so many that are not. The FSA really has to clampdown.”
Richard Farr, marketing manager at The Mortgage Works, said the industry needed a level playing field. “For one firm to gain a competitive edge over another via a non-compliant promotion is wrong and it’s understandable that people are getting frustrated,” he said.
FSA spokesperson Robin Gordon-Walker said: “The policing of Financial Promotions has always been high on the FSA agenda and will continue to be so.”
