Which? has reported two sale-and-rent back firms to the FSA for providing inadequate advice.
The consumer champion found only two firms which offered acceptable advice, after contacting a total of 17 advisers across nine firms.
It found seven advisers failed to discuss whether sale-and-rent back was the right option for the customer, with six of these going on to give quotes.
One adviser gave a quote that would not have left the customer with enough money to pay their debts, according to Which?, and another company did not ask how much the customer’s debts were.
Which? chief executive Peter Vicary-Smith (pictured) says the regulator should clamp down on rogue firms offering sale-and-rent back advice.
He says: “It is simply unacceptable that people are receiving shoddy advice about such a huge financial decision.
“Not only are regulated firms not doing enough to ensure vulnerable consumers make the right choices, some are offering sale-and-rent-back that are not authorised to do so. The FSA must tighten the screw on these firms to make sure the rules are followed and consumers are protected.”