Repossessions firms a Rip Off, a new report by Which?

Families facing repossession are being warned against rip-off tactics used by "quick sale" firms.

A new report by Which? Money has exposed firms illegally offering services to complete property purchases in as little as a week to help borrowers with uk home mortgages[link], clear debts. Sale-and-rent-back providers buy from those desperate to sell and then allow them to rent the home back again. Schemes have come in for criticism after it was found some companies paid less than 60 per cent of the market value for properties.

Others imposed steep rent increases, and even evicted tenants after a matter of months.

UK financial watchdogs will be given powers to ban retail products and warn investors about pending enforcement actions when the Financial Services Authority is broken into three bodies late next year. The government will outline its proposal to strengthen a planned consumer champion and two other regulators, Mark Hoban, the financial secretary to the Treasury, told the Financial Times.

The Consumer Protection and Markets Authority - to be renamed the Financial Conduct Authority - will be able to ban products or limit their distribution for up to 12 months.

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