In the week that the Financial Services Authority (FSA) announced new measures to protect vulnerable customers who opt into the sale and rent back (SRB) scheme for their properties, more legislation has been called for.

Catherine Hearnden, director of financial services group MyMortgageDirect, said that the scheme itself is a positive thing for the industry as it allows people who cannot afford their mortgage to stay in the same home, but some consumers have been ripped off in the past.

"I'm not sure whether it [should be] a FSA thing or whether it should just be consumer protection but they certainly need some sort of protection,"she explained.

The FSA's plans - announced on September 28th and set to be introduced from June next year - include the banning of emotive terms in SRB marketing material.

Phrases like "mortgage rescue"and "fast sale"will be prohibited under the new guidelines, while companies offering SRB deals will have to give customers a cooling off period so they can make a clear decision.

Written by Mark GarnerADNFCR-2002-ID-19387728-ADNFCR

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