New rules published by the Financial Services Authority (FSA) have banned terms such as 'fast sale', 'mortgage rescue' and 'cash quickly' from future promotional literature in the sale and rent-back (SRB) market.
The FSA has issued guidance on the regulation of the sector, with particular attention being paid to cold calling and the practice of distributing marketing leaflets through letterboxes.
Ed Harley, the group's head of mortgage policy, said he understands the importance of people being able to use the SRB process if they are beset by financial difficulties.
But Mr Harley added that some firms are exploiting helpless consumers at a time when they are facing a great deal of turmoil and therefore he backs the implementation of the protections.
Adam Phillips, chairman of the organisation, noted that he is worried that SRB schemes can provide "rich pickings" for firms who are looking to take advantage of families who are desperate for money.
FSA to ban terms from promotions
