| The UK Financial Services Authority have been | | | | and rent back firms are given 14 days cooling |
| regulating sale and rent back companies since June | | | | period so that there will be ample time to rethink |
| 2009, so that consumers can be better protected | | | | their options. This ensures that the customers are |
| from being taken advantage of by scrupulous | | | | sure that they are making the right decision in |
| firms. The sale and rent back companies have | | | | availing of the services of this kind of companies. |
| drawn criticism after reports of unfair evictions, | | | | Offers Customer Protection through the Financial |
| rent increases, and other unfair practices have | | | | Ombudsman. Because the FSA now regulates the |
| emerged. However, these practices are now | | | | sale and lease back firms, consumers can file |
| being regulated by the Financial Services Authority | | | | complaints to the Financial Ombudsman. This gives |
| who are now charged with authorising sale and | | | | more protection from scrupulous firms using |
| rent back companies. Now, under the new regime, | | | | unfair business practices. |
| the Financial Services Authority offer vulnerable | | | | Enforces a five-year minimum security of tenure. |
| homeowners the following protection: | | | | Some people who chose to sell and lease back |
| Authorises Sale and Rent Back Firms. The FSA | | | | their property found themselves turned away |
| now regulates and authorises sale and rent back | | | | from their homes after less than a year. This is |
| companies to make sure that they are operating | | | | why the FSA asks the sale and lease back |
| fairly and using the best business standards. You | | | | companies they give authorisations to give a |
| can check which companies have FSA | | | | minimum security of tenure of five years to |
| authorisations by calling their consumer helpline. | | | | consumers who choose to avail of the companies' |
| According to the Financial Services Consumer | | | | services. This protects the consumers from being |
| Panel, only 80 firms have applied for FSA | | | | unfairly evicted from their homes. Truly, the |
| authorisation. This is despite the fact that over | | | | FSA's jurisdiction over the sale and lease back |
| 1,000 firms are operating in this industry. That's | | | | industry is a welcome change and a good way to |
| why it is essential for consumers to check | | | | increase the reputation of these firms. By |
| whether the firm they are transacting with have | | | | understanding that FSA now require this kind of |
| FSA authorisation. | | | | firms to operate using fair business practices, |
| Bans Exploitive Advertising. The FSA also bans | | | | you'll know that selling and leasing back your home |
| the excessive use of emotional appeal in sale and | | | | is a valid option to keeping your financial health |
| rent back advertising that exploit homeowners in | | | | from deteriorating. With FSA's protection, |
| danger of repossession. This also includes using | | | | consumers should be more confident in trusting |
| cold calls and dropping literature in letterboxes. | | | | these firms to help them release equity and get |
| Gives a 14-day Cooling Period. Customers of sale | | | | out of debt quickly. |