View more on these topics

CMC says lenders are responsible for mortgage misselling, not brokers

A claims management company was warned other claims firms not to chase mortgage brokers over misselling cases, saying ultimate responsibility for signing off a loan lies with the lender.

Lask week, Money Marketing’s sister title Mortgage Strategy revealed claims firm Money Boomerang is running a TV campaign targeting brokers who have allegedly missold a mortgage. The campaign launched on Monday.

Commercial Remedies Group, which operates a processing centre for other CMCs to determine the legitimacy of complaints, says lenders are responsible for missold mortgages.

Director and former sub-prime mortgage broker Simon Helliwell says: “It is no good claiming on a misselling principle. It is the lender who is held accountable on the basis of negligence because it is the underwriter who signs it off at the end of the day. It is extremely hard to prove a mortgage was missold.”

Helliwell estimates that with around eight million mortgages completed in the UK over the last 10 years, missold mortgages could potentially be more lucrative than PPI.

Association of Mortgage Intermediaries’ chairman Pat Bunton says intermediary firms will be hurt more than lenders by a rise in claims, even if they can prove their innocence.

He says: “What is wrong in all of this is that intermediary firms, even if they are able to answer and defend themselves, will still get charged £500 per case above the FOS free case threshold.

There will be many cases of entirely innocent intermediary firms who are left picking up the tab for completely speculative punts. It is about time CMCs are held to account for some of these actions.”

Emba group sales and marketing director Mike Fitzgerald says: “Lenders were and are responsible for the products they designed and sold. Brokers are only the conduit. Claims firms will find that mortgages will be tougher to make money out of than PPI as it is harder to prove misselling.”

Recommended

Mark Pearson MM blog

Mark Pearson: Picking the right pension protection

The lifetime allowance, as we know, is to reduce with effect from 6 April 2014 from £1.5m to £1.25m. Once again, there is to be the opportunity for people who have not previously secured protection against earlier changes to limits, to elect for it under the “Fixed Protection 2014” basis. However, the Government is also […]

Swip UK equity manager James Clunie to join Jupiter

Scottish Widows Investment Partnership UK equity manager James Clunie is joining Jupiter Asset Management. Clunie will help develop Jupiter’s total return and equity long-short offering when he joins in July. Clunie has been at Swip since April 2007 and managed the £51.8m Swip UK Flexible Strategy, £116m Swip UK Opportunities, £46.7m Scottish Widows Select Growth and £72.4m TU […]

Aegon platform director departs

Aegon platform director Bryan Hill is leaving the firm this month. Hill was recruited in September 2011 from Friends Life to develop the Aegon Retirement Choices platform strategy. Aegon says Hill’s role has been completed and he will now pursue other opportunities. There are no plans to replace him. An Aegon spokesman says: “As one […]

4

Ex-FSA chief John Tiner drops out of RBS bid after HBOS report

Former FSA chief executive John Tiner has dropped out of a consortium bidding for 316 Royal Bank of Scotland branches following last month’s scathing parliamentary report on the failure of HBOS. Tiner, who was in charge of the FSA from 2003 to 2007, was brought in to lead the bid last month but the FT […]

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com