The Financial Services Authority has finally stopped sell and rent back fly-by-night companies with a set of regulations that protect consumers.
From manipulative advertising to unfair business practices, the FSA are now cracking down on sell and rent back cowboys in the UK.
Since June 2009, the FSA has extended their jurisdiction to cover the sale and lease back industry.
Consumers who have complaints on these firms can take their case to the Financial Ombudsman for settlement.
The Financial Ombudsman Service was set up by the parliament to settle disputes between consumers and businesses offering financial services.
Independent and impartial, the Financial Ombudsman's services are free and they try to settle disputes out of court for both parties.
Aside from the Financial Ombudsman, the FSA provides authorisation for sale and lease back companies that pass their requirements.
This means that the sale and rentback companies which are FSA- authorised operate using ethical business practices.
You are assured that these companies are fair in dealing with their customers.
To prevent consumers from being unnecessarily evicted from the homes that they have sold and are leasing back, the FSA ensures that firms have fully explained the fine print to their potential clients.
This means that you are sure about the length of time you are allowed to stay in your home before the firm can sell it to another person.
The FSA mandates firms to provide a five-year minimum security of tenure to former house owners so that they will be able to fix their financial situations without being evicted from their home.
The FSA urges consumers to understand the terms of the agreement before signing up for the services of sale and rent back firms.
The FSA has also asked sale and rent back firms to refrain from cold-calling potential customers or conducting aggressive advertising.
This means that the sale and rent back firms are not allowed to manipulate vulnerable home owners into selling their homes.
People who are undergoing financial troubles are also required by the FSA to enforce a 14-day cooling off period before they sign the sale and rent-back agreements.
They are given this time to think about whether or not they understand the terms of the agreement and have been fully informed by the sale and rent back firm about other options that they could try without selling their homes.
Because of this, the FSA has successfully given consumers the protection that they need from unauthorised operators who prey on people who feel like they have no other options in saving themselves from being mired with debt.
Since enforcing their rules, around 80 firms have applied for FSA authorisation.
This is a small number compared to the more than a thousand sale and rent-back companies operating in the UK.
That's why it is important for consumers to check with the FSA whether or not a firm is authorised before doing business with them.
From manipulative advertising to unfair business practices, the FSA are now cracking down on sell and rent back cowboys in the UK.
Since June 2009, the FSA has extended their jurisdiction to cover the sale and lease back industry.
Consumers who have complaints on these firms can take their case to the Financial Ombudsman for settlement.
The Financial Ombudsman Service was set up by the parliament to settle disputes between consumers and businesses offering financial services.
Independent and impartial, the Financial Ombudsman's services are free and they try to settle disputes out of court for both parties.
Aside from the Financial Ombudsman, the FSA provides authorisation for sale and lease back companies that pass their requirements.
This means that the sale and rentback companies which are FSA- authorised operate using ethical business practices.
You are assured that these companies are fair in dealing with their customers.
To prevent consumers from being unnecessarily evicted from the homes that they have sold and are leasing back, the FSA ensures that firms have fully explained the fine print to their potential clients.
This means that you are sure about the length of time you are allowed to stay in your home before the firm can sell it to another person.
The FSA mandates firms to provide a five-year minimum security of tenure to former house owners so that they will be able to fix their financial situations without being evicted from their home.
The FSA urges consumers to understand the terms of the agreement before signing up for the services of sale and rent back firms.
The FSA has also asked sale and rent back firms to refrain from cold-calling potential customers or conducting aggressive advertising.
This means that the sale and rent back firms are not allowed to manipulate vulnerable home owners into selling their homes.
People who are undergoing financial troubles are also required by the FSA to enforce a 14-day cooling off period before they sign the sale and rent-back agreements.
They are given this time to think about whether or not they understand the terms of the agreement and have been fully informed by the sale and rent back firm about other options that they could try without selling their homes.
Because of this, the FSA has successfully given consumers the protection that they need from unauthorised operators who prey on people who feel like they have no other options in saving themselves from being mired with debt.
Since enforcing their rules, around 80 firms have applied for FSA authorisation.
This is a small number compared to the more than a thousand sale and rent-back companies operating in the UK.
That's why it is important for consumers to check with the FSA whether or not a firm is authorised before doing business with them.