New rules have been introduced to protect individuals who sign up to sale and rent back schemes in relation to their homes. These schemes allow homeowners to release funds from probably their most valuable asset but continue to remain in the property. However, there have been doubts over the reputable nature of these schemes which has led to the Financial Services Authority to take action in this area. The FSA will now monitor sale of those schemes to make sure certain general standards are being met which are
- treating customers fairly
- making sure that important information about the agreement is clear
- not pressurising individuals to sign up to a scheme.
The new rules also mean that customers will have access to a complaints procedure if things go wrong. For more information see http://www.oft.gov.uk/news/press/2009/96-09