FSA fines mortgage broker for cold calling and PPI failings

The Financial Services Authority has fined broker Capital Mortgage Connections £17,500 for rule breaches including cold calling potential customers.

This is the first time it has taken action against a firm for cold calling, after the FSA investigation found that 85 per cent of its business was generated by cold calling potential customers.

The fine also includes CMC's failure to treat its customers fairly by being unable to demonstrate that it gave appropriate pricing information on the accident, sickness and unemployment insurance polices sold.

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Which? Claims public lack of trust in financial services

Only 47 per cent of consumers trust the financial services industry and 21 per cent have had a bad experience with a financial company, according to research from Which?

The consumer body interviewed 528 people for the survey and claims it shows the industry has a long way to go to regain the full trust of the public.

Which? Personal finance campaigner Doug Taylor says: “These are worrying statistics. The financial services industry’s past actions and mis-selling scandals have scarred British consumers".

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Government urged to reform benefits system to prevent repossessions

The Council of Mortgage Lenders have urged the government to increase support for mortgage borrowers who fall into payment difficulties and renew its commitment to sustainable home-ownership - with an aim of enhancing the safety-net for home-buyers and minimising the numbers of arrears and repossessions.

The CML have urged the Government to help reduce arrears and repossessions by reforming the benefits system to help those in trouble.

In its pre-Budget report, the trade body calls on the Government to increase the £100,000 maximum mortgage sum eligible for income support for mortgage interest. This threshold has not been increased since 1995.

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Hiring experienced solicitor 'is essential for overseas property deals'

Hiring a solicitor that has both local knowledge and experience is essential when buying property overseas, it has been claimed.

The comments have been made by Spanish property services provider Banco Halifax Hispania, which is the Spanish arm of the UK bank Halifax.

"Few people would consider buying a property in the UK without instructing a solicitor or surveyor and the same care and consideration should be taken when buying abroad," said Ian Smith, head of European operations at Halifax.

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Poland 'represents promising property investment'

Landlords looking for high returns from overseas property investment have been alerted to recent growth figures in Poland.

In newly-published research from housing information group Property Secrets, it has been claimed that average property market growth in the east European country stood at 21 per cent last year, reports Easier.

Moreover, the cities of Krakow and Wroclaw apparently represent some of the most promising areas for investment, as they were characterised by annual rises of 29 per cent and 24 per cent respectively.

Simon Tweedle, head of research and analysis at Property Secrets, said that at present in Poland "demand is far outweighing supply".

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Consumer Credit Act 2006: Removal of the £25,000 financial limit and impact of Section 82 of the CCA 1974

It was always clear that abolition of the £25,000 financial limit (clause 2 of the 2006 Act) would create unintended consequences for the regulation of mortgage loans in terms of the interface between the CCA and FSMA.

There is potential for dual regulation and for existing unregulated mortgage loans (taken out before M-day - 31 October 2004) to be propelled into CCA regulation.

The key factor here is section 82 of the CCA 1974. Essentially, section 82 governs situations where a loan is varied or supplemented. The effect of section 82 is that a new agreement is created combining the existing and modifying agreement.

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