BSA welcome FSA arrears announcement

The Building Societies Association (BSA) welcomes the announcement by the FSA that it will be requiring lenders to review their arrears policy and procedures and assess whether borrowers in arrears are being treated fairly.

Commenting on the announcement, Adrian Coles, Director General of the BSA said: "Building societies welcome the FSA's announcement - with arrears forecast to increase over 2009, it is essential that all lenders ensure that their arrears and repossession policies treat customers fairly.

"Building societies want their borrowers to remain in their homes if they have repayment difficulties, and genuinely view repossession as a last resort. The recent commitment by major lenders not to commence repossession action within three months of an account going into arrears reflects standard building society practice, societies also comply with the new Civil Justice Council pre action protocol on possessions.

However, it is vital that borrowers who have, or believe they may be about to have, repayment difficulties contact their building society as soon as possible.

"If they do so, they will find a sympathetic welcome and advice to help them stay in their home."