Abacus Daily Debt News

FSA: Consumer Credit Directive will not be extended

The Financial Services Authority (FSA) and the UK Treasury have announced that the Consumer Credit Directive (CCD) will not be extended to include mortgage loans.

Such practices will continue to be addressed in the FSA’s Mortgages and Home Finance: Conduct of Business guidebook and a statement from the body noted that the refusal to incorporate the CCD into its practices "does not mean that such mortgages are unregulated. Rather, this form of credit is subject to a regime that is better attuned to the issues it poses", OpRisk & Compliance reports.

This was made clear in a letter to the European Commission (EC) from both the FSA and the Treasury, in response to a questionnaire from the EC which stated that some member states have made the CCD apply to secured loans.

It recently emerged that the FSA intends to offer greater protection to borrowers through strengthening measures that help people who have mortgage-related debt.

By Sarah Adie