View more on these topics

Court shuts down Century mortgage accelerator firm

Mortgage broker Century Mortgages and its associate Mortgage Control

Services are to be wound up for misleading their clients and the sales


The Department of Trade and Industry petitioned the High Court to close

the companies down on the advice of the Secretary of State for Trade and

Industry who found the companies had not warned clients about the

disadvantages of the “fundamentally flawed” mortgage acceleration programme

it promoted.

The Secretary of State had several misgivings aboutthe acceleration

programme under which participants were induced to enter into deals to

speed up the payment oftheir mortgages.

The misgivings included the fact that a repayment mortgage was

considerably less costly, the programme was inappropriate for endowment

mortgages, early redemption of the loan was more expensive and advice was

limited to a small panel of lenders.

Century was also accu-sed of misleading its self-employed agents, or

licensees, about the earnings that they would receive, failedto train them

properly, and strong-armed them intobuying shares.

Yorkshire-based Century Mortgages started trading as a broker in September

1995 offering remortgage packages through a network of 3,000 licensees.

Mortgage Control Services were responsible for administering mortgage

payment schemes on behalfof Century.

Recruitment advertisements for the licensees indicated that they would

earn between £25,000 and £50,000 a year but hardly anyone did.

The businesses failed to keep proper records, in particular regarding its dealings with associated businesses.

The DTI investigations were conducted under the provisions of Section 447

of the Companies Act 1885. The companies will now be liquidated by the

official receiver.

The company directors initially opposed the moves to close them down but

dropped their opposition.


Portillo keeps his cards close

The annual general meeting of the Centre for Policy Studies is a grandaffair. The great and the good turn up to salute a thinktank that has beenat the heart of Conservative thinking for 25 years. The guest speaker has agilt-edged opportunity to lay out fresh Tory thinking and to be guaranteedextensive media coverage.So why did […]

ABI rethinks extension of cooling-off period

The ABI has backed down in the face of widespread industry criticism overits proposal to extend cooling-off periods from 14 days to two months.Instead, the ABI, under its Savings and Long Term Risk initiative, haswatered down its proposals to 30 days, which IFAs consider more acceptable.The proposal is part of an overall revamp of the […]

RAM poaches equities team from CGNU

Rothschild Asset Management star fund manager David Kiddie has poached anew US equities team from CGNU.Chief investment officer David Kiddie, a recent recruit from Hill Samuel,has lured the CGNU team led by Crispin Cripwell.The team also includes Anna Piney, Scott Irving and Alex Robarts.Cripwell will retain the title he held at CGNU of head of […]

The business is out there

Don&#39t despair, the work is out there,you just have to look carefully. SomesmallerIFAs seem dismayed at the potentially adverse impactof stakeholderpensions on their business.They point to the much reduced capacity of commission under stakeholderwhen compared to personal pensions and correctly infer that it will be verydifficult to justify selling a new £100 per month personal […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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