Actions Taken By Fsa To Prevent Mis Sold DB Mortgages February 27th, 2014

Recently, Financial Services Authority fined £1 million to DB Mortgage Company on the rounds of mis selling.

FSA is generally a government watchdog and is mainly responsible for regulating the mortgage market against the action of mis selling. In fact, FSA has assured borrowers that they would be compensated if they are the victims of Mis sold DB mortgage. DB Mortgage is the mortgage firm of Deutsche Bank. Lately it was discovered that this company was lending very irresponsibly. At the same time, it was also discovered that often these mortgage companies like DB Mortgage are unreasonable to the mortgages that were unable to make their repayments.

However, the customers can get back their money from the company under the strict instruction of FSA. In fact, it was also reported that Mis sold DB mortgage was ordered a repayment of £1.5 million as fines in relation to the method in which they had been irresponsibly conducting their business. This is certainly good news for the mortgage borrowers because now they can be assured about the protection policy of the money. With the increase in the responsibility of the lenders it would become easy for the customers to reach out and borrow loans because now lending on part of these companies would certainly be more responsible.

In fact, a new rule has been set by FSA that the lenders like DB Mortgage can be penalised for carrying out unfair lending practices. Many lenders are guilty and they are also finding out different ways by means of which they can compensate for Mis sold DB mortgage. It was also decided that the lenders would deal with their customers with more care. They were forced to return the charges to their customers because the charges were lot higher than the cost of administration.

Now even if a borrower misses a payment or falls behind, he would be given some time to repay the amount. At the same time, in order to prevent Mis sold DB mortgage, it is essential on part of the lenders to explain the terms and conditions of the policy so that the customers do are not mis-guided. This in turn, would help them to select the best loan in accordance with their requirements and their budget. At the same time, they would also be prevented from falling into the trap of misselling in future and the transactions would be carried out smoothly.