If you are thinking of taking out a loan for any purpose you will find that there are a number of loan providers to choose from, and deciding which lender to go through can prove to be a difficult decision, particularly if you don't know much about the loans industry and what to look out for. However, one thing that you should always check when comparing lenders is that the company that you are planning to use to get your loan is FSA regulated, as this means that you will have consumer protection against unfair or unprofessional practices.
What is the FSA?
The Financial Services Authority is a UK financial regulator, and is funded by the financial industry itself. This non-government body has a panel that is selected by the Treasury. The members of this panel set out the overall policies of the FSA.
The FSA provides regulations, procedures, and policies that have to be followed by companies and sectors that it regulates, and a number financial services and areas are regulated by this agency. The aims of the FSA are to protect consumers against unfair practices, to raise market confidence in financial services, to reduce financial crime, and to raise public awareness of the finance industry.
Why choose a company that is FSA authorised and regulated?
When you go through a company that is FSA authorised and regulated you will have the peace of mind that the company has to adhere to FSA rules and regulations, and this in turn means that you get to enjoy the protection that the FSA offers to consumers of FSA regulated lenders. You should look out on the website or literature of the companies that you are looking for, as it will state if the company is FSA authorised and regulated. If it is not, then you could be taking a huge risk with your borrowing because the lender or company will not be obliged to adhere to these regulations.
The FSA sets the necessary standards for the finance industry, and those companies that are regulated and authorised by the FSA will have to work in line with these set standards. In short part of the aim of the Financial Services Authority is to protect the consumer and it does this through the provision of standards, policies, and regulations that its members must adhere to. This means that if you take out a loan through an FSA authorised and regulated company you will enjoy this additional protection and will be able to take action in the event that you are concerned about unfair treatment and practices by the company.
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