Treasury and FSA have published the UK response to the Commission on its consultation on responsible lending and borrowing. The response:  

  • outlines what the UK thinks the Commission’s priorities should be: it notes the crisis did not reveal evidence of mis-selling and irresponsible lending in EU mortgage markets on as great a scale as in the US. It explains how the UK is working on specific credit market problems and will soon publish a discussion paper on the markets. It says other Member States should do similar domestic exercises. It stresses the importance of effective enforcement, flexibility and tackling information asymmetries; and 
  • answers specific questions: its responses stress the importance of financial capability among consumers and looks at UK views and measures relating to specific products and customer assessments. It gives some detail on different sorts of credit intermediary, and says regulation should take account of potential consumer detriment those intermediaries could cause.