Are The Days Of Easy Credit Numbered?

Share Article

FSA chief warnings could lead to an end of borrowers gaining easy credit, and could see people getting into financial trouble.

Senior management should engage to a greater extent to ensure that firms are making the right judgements in delivering the outcomes we want to achieve.

Hector Sants, Chief Executive of the Financial Services Authority yesterday made it clear that the FSA will continue to push money lenders to become more responsible when loaning money. Speaking at an FSA conference for retail financial service firms, Mr. Sants said, "We believe that these times of turbulent markets reinforce the importance for both the regulator, and the industry, to focus on the outcomes and consequence of actions. The FSA is, and will remain, a risk-based and evidence-based regulator."

With the recent pressures being placed monies markets, and the USA credit crunch coupled the tightening of UK regulation through the FSA could mean for many the days of continuous borrowing to pay for life styles could be over. And herein lies the danger, as many have come to rely on the ease of gaining credit to support such status. In the most recent results for The Debts Counsellors http://www.debtcounsellors.co.uk Credit Survey shows that 44% of those taken part said they strongly agreed that credit was easy to get. But is this going to change?

Mr. Sants went on to say, "Senior management should engage to a greater extent to ensure that firms are making the right judgements in delivering the outcomes we want to achieve."

And what do they want to achieve? It seems that the FSA are all about the FSA's push for Treating Customer Fairly, their new code of ethics, which is basically trying to put the responsibility of borrowing on the lender and not the borrower.

So, with the FSA pushing and the senior management being placed into a corner, the days of easy credit could be numbered, and for many borrowers this could spell a very rocky road ahead?

To be Debt Free in 36-60 months, please call: 0800 018 6018 or visit http://www.debtcounsellors.co.uk.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Kevin Aston
Visit website