Regulator expresses concern over sub-prime lenders

The Financial Regulator has expressed concern about how sub-prime mortgage lenders are treating customers in arrears.

In an inspection of how banks, building societies and other lenders are dealing with arrears and repossessions, Matthew Elderfield found that sub-prime lenders are overstepping the mark in this area.

He said they are constantly calling and texting struggling customers, and he criticised them for charging people for letters they send to them.

It is now expected that Mr. Elderfield will soon change the rules to prevent sub-prime companies from doing this.