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Unpaid debt prompts IFA into action against MPPI firm

Scunthorpe-based IFA Independent Financial Advisory Services is threatening to take further action against mortgage payment protection insurance provider Mortgage Protection UK after it failed to pay commission owed to the firm or show up for several court hearings.

MPUK has owed Ifas £2,505 in commission since January 2001. This has now been increased to £5,365 by Scunthorpe County Court to take account of interest, having to make alternative protection arrangements for clients and not attending any court hearings.

Mortgage Protection UK says managing director Chris Goalen did not attend the latest court hearing on September 26 because of food poisoning contracted at a function held by the Wales-based company.

It says it will pay £2,505 to Ifas in the next 14 days and clear any debts it owes to other IFAs once it has completed the sale of part of its estate worth £3.5m.

But Ifas says as Mortgage Protection UK failed to meet the court&#39s original deadline of October 4, it must hand over £5,365 or Ifas will take further action to close down the firm.

Partner Carl While says: “If anyone else is in the same boat, I would ask them to contact us. If we can get half a dozen IFAs with claims, we can get the company wound up straight away.”

A Mortgage Protection UK spokeswoman says: “Mr Goalen could not attend the court because of food poisoning. We have agreed to pay £2,505.”

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