FSA tells lenders to clarify exit fees
Late last year the FSA said it was looking at Mortgage Exit Administration Fees (MEAFs) and today it’s given an update.
“After examining a number of mortgage contracts as part of its probe, the FSA said it considered some were not as clear as they could be in explaining what costs would be charged to the consumer at what time or event in the life of the contract.
The watchdog said it was also not clear that increases in MEAFs were proportionate to any increases in associated mortgage exit costs incurred.
As a result of its inquiries, the FSA confirmed it has now asked some lenders to consider whether their terms might be unfair and to provide evidence of how decisions to increase their MEAFs were taken.”
It expects to get the replies in the next month or so and will probably provide an update then. As with all these things, any changes to legislation upstream affects the little fish downstream.
