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Calls for tougher stance on sale and rent back

Calls for tougher stance on sale and rent back

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Trading Standards should fine sale and lease back companies that mislead consumers through inaccurate advertising, it has been argued.

Safe Home Income Plans (Ship) has called for the measure in order to clamp down on websites that promote the sale and lease back plans but fail to inform people of the associated risks.

People struggling with expenses - such as paying the mortgage - often sell their homes and rent them back under such schemes.

But some dubious sites are making "misleading comparisons" with equity release plans, which are regulated by the Financial Services Authority (FSA), Ship noted.

It has called on Trading Standards to penalise landlords who do not make issues on sale and rent back schemes clear in their advertising.

"We believe that the ethical companies in the sale and rent back sector will welcome these recommendations, as they will not want to be tarred with the same brush as those who are misleading consumers," commented Ship director general Andrea Rozario.

The sector should be overseen by the FSA, the he Office of Fair Trading has recommended.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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