In 2014, Housing Rights represented borrowers in a successful high court case that challenged the practice of payment of arrears being automatically included in the mortgage installment, without borrowers knowledge or consent.
Today, the Financial Conduct Authority (FCA) has announced that this practice is likely to be in breach of its rules. It is to consult on new guidance on how lenders deal with clients in arrears with their mortgage. The guidance will cover remedies for customers who may have been negatively impacted by how their lender has dealt with arrears in the past.
