The Financial Services Authority (FSA) has stepped in to look at the heavy-handed sales tactics employed by many sale and rent back companies.

Sale and rent back companies have seen a massive increase in growth over the past year thanks to the current recession. Many companies have cashed in on the fact that many people are struggling to keep up the repayments on their mortgage and coupled with other debts, they are looking for a quick way to get their hands on a large amount of cash whilst being able to stay in their homes.

Some sale and rent back companies have been using high-pressure tactics and many of these companies have been reported over the past few months. The FSA has now stepped in and said that hard-sell adverts will be banned with particular terms outlawed from June 2010.

Many people who resort to sale and rent back companies are already under huge amounts of pressure and stress. Although the sale and rent back option looks hugely attractive to them, it is often not to their long-term benefit. The small print on a sale and rent back agreement often divulges that the customer could lose a significant amount of money – usually because the company is offering a massively below-market rate for the property. Because of the stress and pressure, large numbers of people fail to read the small print on the contract and therefore are not aware of the pitfalls of using such a scheme.

If you are contemplating using a Sell and Rent Back company, make sure you read our free guide to sale and rent back first!

Popularity: 1% [?]