PRESSURE PAYS OFF FOR REGULATING SALE AND RENT BACK.
Glasgow SNP MSP Bob Doris has given a cautious welcome to an announcement from the Treasury that legislation will be brought forward to bring sale and rent back agreements within the scope of Financial Services Authority (FSA) regulation.
The practice of sale and rent back, where those facing repossession sell their homes and should be able to remain in them by paying rent has been unregulated and the SNP has echoed calls by the Office of Fair Trading for the UK Government to regulate, what is a reserved area of the financial services market
Commenting Mr Doris said:
“No one wants to see repossessions take place and that is why the SNP Government took early action to ensure home owners could be protected and that alternatives to repossession are available.
“This is a case of better late than never from the UK Government. It is good to see that pressure is finally paying off in the sale and rent back market and that there are now moves to implement regulation.
"I have pressed the UK Government for some time to plug the Sale and Rent Back loophole which for many is a disreputable black market in repossessions.
“Whilst the Treasury could have acted quicker it is welcome that a move forward is being made.
“Nevertheless we must wait for the details and I am sure that regulation will hold no fears for the reputable companies and hopefully drive out the cowboys that make their money on the misery of others'.
“Such a change will complement the SNP Government 's investment of £35 million in a home owners support fund, expanded legal support services in courts, enabling 1 million more Scots to access legal aid and establishing a working group to see what additional legal measures could offer further protection to Scots."
Glasgow SNP MSP Bob Doris has given a cautious welcome to an announcement from the Treasury that legislation will be brought forward to bring sale and rent back agreements within the scope of Financial Services Authority (FSA) regulation.
The practice of sale and rent back, where those facing repossession sell their homes and should be able to remain in them by paying rent has been unregulated and the SNP has echoed calls by the Office of Fair Trading for the UK Government to regulate, what is a reserved area of the financial services market
Commenting Mr Doris said:
“No one wants to see repossessions take place and that is why the SNP Government took early action to ensure home owners could be protected and that alternatives to repossession are available.
“This is a case of better late than never from the UK Government. It is good to see that pressure is finally paying off in the sale and rent back market and that there are now moves to implement regulation.
"I have pressed the UK Government for some time to plug the Sale and Rent Back loophole which for many is a disreputable black market in repossessions.
“Whilst the Treasury could have acted quicker it is welcome that a move forward is being made.
“Nevertheless we must wait for the details and I am sure that regulation will hold no fears for the reputable companies and hopefully drive out the cowboys that make their money on the misery of others'.
“Such a change will complement the SNP Government 's investment of £35 million in a home owners support fund, expanded legal support services in courts, enabling 1 million more Scots to access legal aid and establishing a working group to see what additional legal measures could offer further protection to Scots."
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