The FSA can now make authorised businesses promise to amend terms on contracts which have been judged unfair under the Unfair Terms in Consumer Contracts Regulations 1999.

Announcements have been made after cases were referred to the FSA and then on to the OFT.

• Intelligent Finance were told that a term in the mortgage conditions which allowed the to increase charges unilaterally for "valid" reasons was unfair. The FSA also objected to a charge made on customers when they exited the contract. They said it meant customers were not free to terminate the deal.
   
• Skipton Building Society had a clause in its investment account term saying that customers were personally liable for loss of money from fraud even if the building society was negligent in its security procedures. The FSA said the clause breached consumer legislation as it tried to exclude consumers' legal rights where the firm has not acted properly.

More on unfair mortgages and loans.