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Which? reports two sale-and-rent back firms to FSA

Peter-Vicary-Smith.jpg

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.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Seems like Which? is doing the FSA’s job for it.

  2. Providing inadequate advice in sale and rent back schemes, particularly to the vulnerable who are in debt, is unacceptable and Which? is to be applauded for its actions.

  3. Nothing surprises me anymore! 22nd February 2011 at 11:17 am

    So Which? are now the hired mystery shoppers eh!
    Well at least someone is trying to help eject second hand car salesman from our industry and they aren’t even charging a Levy for it!!!

  4. Leslie, I agree entirely. This is a sector which I assume that most of us have no connection with, where I assume the clients are vulnerable & easily mislead. The Regulator needs to keep an eye on companies operating in this arena, and needs to cme down hard on any poor advice.

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