The FSA thinks you are thick

besti

http://www.moneymarketing.co.uk/1043441.article?cmpid=MME01&cmptype=newsletter&email=true

Apparently, the only people who can decide whether a mortgage is suitable for you is a mortgage adviser.

Guess we'll be seeing a lot more fees then

Wh05apk

besti wrote: »

http://www.moneymarketing.co.uk/1043441.article?cmpid=MME01&cmptype=newsletter&email=true

Apparently, the only people who can decide whether a mortgage is suitable for you is a mortgage adviser.

Guess we'll be seeing a lot more fees then

No, hopefully a lot less "advice" being given by non qualified bank staff, most bank staff are not qualified, and although make comments like "ooh that's a really good fixed rate, you should take that" which is actually giving advice, the point being as soon as there is some "interaction" taking place, either voice/text/email etc then that could be deemed as an element of advice, I beleive, if you want to go onto a lenders website and complete the application yourself, then you will still be able to do so.

magpiecottage

I have seen FOS conclude that a Chartered Accountant was too thick to ealise a British IFA was not the right person to ask about a French tax issue and award redress against the IFA.

I have seen a teacher claim she did not realise her mortgage ran into her retirement (i.e. she could not add 25 to her age and work out that it was more than 60).

I have seen a teacher claim she did not realise that if an endowment only achieved the £27,000 figure shown on an illustration.

Bear in mind, all those consumers who are complaining that they were sold PPI when they had sickness cover from their employers which they did not even know existed (but the adviser was somehow supposed to have).

So yes it seems that the FSA and FOS DO think consumers are thick.

Wobblydeb

magpiecottage wrote: »

I have seen FOS conclude that a Chartered Accountant was too thick to ealise a British IFA was not the right person to ask about a French tax issue and award redress against the IFA.

I take it in that case the IFA actually give advice on the French tax issue, rather than saying "this isn't something I specialise in"?

kingstreet

besti wrote: »

the only people who can decide whether a mortgage is suitable for you is a mortgage adviser

Interesting idea when there won't be many left. Well, there won't be many left outside banks that is...

http://www.mortgagestrategy.co.uk/1043428.article?cmpid=MSE01&cmptype=newsletter&email=true

dunstonh

I have seen FOS conclude that a Chartered Accountant was too thick to ealise a British IFA was not the right person to ask about a French tax issue and award redress against the IFA.

We were made aware of a case where a pension investing in a range of unit linked funds had a complaint upheld as person was a courier and couldnt be expected to know about sophisticated investments. Everyone in the room thought the case was fine and set up well. We weren't talking about any weird investments either. Just your bog standard mainstream unit linked funds.

They measured the client ability to understand on his occupation. i.e. he is a courier and that makes him low IQ.

There does seem to be an assumption a lot of the time that the consumer is stupid unless proven otherwise. It is quite insulting really but then again, you just have to look at the posts on this site to see that there are lots of people who get themselves in to trouble because they didnt know what they are doing.

Thrugelmir

besti wrote: »

Apparently, the only people who can decide whether a mortgage is suitable for you is a mortgage adviser.

When I obtained my first car purchase loan (many years ago). I had to see the bank manager and provide details of my income and expenditure.

Standards of financial literacy have fallen in recent years. So some re-education probably won't go amiss. As people are weaned off the borrow now pay later culture that has evolved.

hcb42

sometimes I wish they would quit meddling.

Thrugelmir

hcb42 wrote: »

sometimes I wish they would quit meddling.

If they had earlier we wouldn't have the problems that exist now. Going to take years to unwind the excesses of the credit boom.

poppy10_2

Thrugelmir wrote: »

When I obtained my first car purchase loan (many years ago). I had to see the bank manager and provide details of my income and expenditure.

Yep, I remember my parents telling me about their first mortgage - they had to have a sit-down interview with their local bank branch manager, and were quizzed about their job stability, life plans, plans for children etc as well as their income and expenditure before they were granted the 'honour' of being given a mortgage. These days banks hand out hundreds of thousands of pounds based on a checklists and computerized credit scoring, which can only tell you so much about a person. More rigorous lending standards would not go amiss, and will help rather than hinder potential borrowers by protecting the financially vulnerable.

brit1234

We want more meddling if it would mean a more stable housing/mortgage market. These proposals have been shamefully watered down to appease certain vested interests and the exspence of a stable housing market.:mad:

I expect to see big loop holes being exploited in the next couple of years.