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To finish this section, there is one more independent organisation called the Association of Mortgage Intermediaries (AMI) who acts as the trade body for mortgage intermediaries.

Conclusion

Although the Secured Loans sector is commonly referred to as 'unregulated' this document has hopefully shown there is still a lot of regulation (both official and un-official) that affects and encompasses the secured loans sector. In the finance area where the UK has a reputation for being the most regulated in Europe it is only a matter of time before secured loans come under the umbrella of the FSA. It is believed that instruction for the FSA to take control of the secured loans market is more likely to come from the treasury rather than the FSA itself. What is certain is that the secured loans market will become more legislated in the coming years. One thing to note if you are going to business in the Mortgage or Secured Loans market that subscription to these organisations can add up to many thousands of pounds per year.

1. For more information about the Secured Loans industry and the contents of this article please visit The Company Blog
2. Introduction The Secured Loans market is often referred to as 'Unregulated', but what does this mean? This article will attempt to answer this question by looking at the both official and non-official governing bodies that have an affect Secured Loans. It will also briefly discuss the various Parliamentary Acts that incorporate legislation affecting the Secured Loans or Second Charges market. The target readership for the article is either those involved in the Finance Industry, specifically secured loans, or members of the public with a general interest in Consumer Credit legislation which may affect them.

The Office of Fair Trading (OFT) The Office of Fair Trading, or O.F.T as it is more commonly referred to, is responsible for a number of key areas with the ultimate aim of protecting the consumer. It has three main purposes. These are the enforcement of Competition and Consumer Protection rules, the analysis of markets to make sure they are working and communication to consumers, businesses and the government.

In terms of Secured Loans there are a number of areas the O.F.T deals with that affect the way that operators in the market promote themselves. The first of these is by administering Consumer Credit Licenses. With the rapid growth in people taking out credit in the early 1970s an act of parliament was passed in 1974 called the Consumer Credit Act and it is under this at that Consumer Credit Licences are granted. If an entity advertises promotes or brokers Secured Loans it must have a Category C Consumer Credit License. On application the O.F.T will investigate all people connected to the business applying to ensure that they are all people worthy of issuing or guiding people to enter into credit. There is a general misconception in the market that the Consumer Credit License is only required if the Secured Loans Company offers loans less than Ј25,000, but the Act clearly states that a Category C license is required for businesses that provide credit of ANY amount secured on land.

Other areas the O.F.T deal with that affects secured loans are there enforcement of other elements of the 1974 Act and also the updates to the Act which occurred in 2004 - these are the 'Agreements Amendment', 'Disclosure of Information' and 'Early Settlement' Consumer Credit Acts.