An end to sleazy clip-joint tactics

David Kuo, Head of Personal Finance at Fool.co.uk, says: “Some mortgage lenders have been taking unsuspecting borrowers for a ride by indiscriminately hiking mortgage exit administration fees (MEAFs). In some instances the hefty hike in charges has been well above the rate of inflation. Consequently, Fool.co.uk welcomes the intervention of the Financial Services Authority (FSA) to ensure that borrowers get a fair deal.

“Just as no one in their right mind would visit a sleazy Soho clip-joint, borrowers are expected to do precisely that by signing up to loan agreements without knowing what the final tab will be. The proposals put forward by the FSA will go a long way to ensure that borrowers know what they will pay on exit when their mortgage term ends.”

David adds: “The FSA’s proposal also provides recourse for past customers who may have been unfairly penalised by high exit fees. Fool.co.uk therefore urges past customers of shameful lenders to pursue claims if they feel they have been treated differently to new customers under the FSA proposal.”