Thread: Fisa

Hi Folks

I was having a look at the application form that we completed for the swift loan.

and under "Important points to note:" there is a section that says

"If the loan is regulated by the Consumer Credit Act 1974 you should have been provided with a copy of the finance Industry Standards Association (FISA) Borrower Information Guide which explains the key features of this type of loan including an explanation about how the amount payable on early settlement is worked out. Please insert here the number of the FISA booklet."

(there is a rectangular box with an asterisk and a seven digit number has been handwritten in this box)

As a number is written here does this imply that the loan is regulated under the CCA 1974 Act? Or are all secured loans regulated under this Act?

It's also interesting to note on the FISA website

Important Information

The Finance Industry Standards Association closed down on 19th April 2009.


I had read earlier today on their site (under news items) it was to do with the dwindling funds they were receiving, as there are limited numbers of brokers around!!! (however it doesn't appear there when I've looked again).


Doc

July/Aug 2007
Why?

FISA now no longer exists - it used to be a standards body for the secured lending industry, however it had no statutory remit - i.e. it was a voluntary code of conduct for lenders and brokers. Some would argue that the standards are therefore less enforceable.

Generally, if you have a second charge loan (i.e. you also have a seperate mortgage, the lender of which has first charge on your property); it will be regulated by the CCA. Until recently, loans over £25k were not covered by the CCA so it can depend on the original loan amount.

If you have a CCA regulated loan, the original loan agreement will say Consumer Credit Act agreement somewhere on it.

I know quite a bit about this area, so if you need to know anything else just post on here on contact me.

Hi this is max from nsw, australia, just to say hi to every1!