Claims firm to chase brokers for mis-sold mortgages
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Claims firm Brunel Franklin has launched a mortgage mis-selling service, aiming to get compensation for borrowers who were mis-sold mortgages by brokers.
The firm has launched the service following the Financial Services Authority’s ongoing clampdown on mortgage brokers accused of mis-selling.
Sally Bowyer, managing director of Brunel Franklin, says: “In 2008 the FSA delivered a key message that it was concerned about some mortgage brokers selling contracts to potential home owners and either concealing details about the mortgage or encouraging them to inflate their income for the purpose of gaining a larger mortgage.
“This, together with recommendations to take interest-only mortgages with no means to repay, are just some of the examples of mortgage mis-selling.”
The firm believes there are over 300,000 people in the UK who have been mis-sold a mortgage.
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Readers' comments (37)
Matthew Gamble | 8 Mar 2011 3:49 pm
Do you honestly think that caliber of adviser is still trading in this market.
The phrase blood out of a stone spring to mind.
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Anonymous | 8 Mar 2011 3:50 pm
I assume the clients, if they are succesful will have to leave their house as a mortgage was not suitable. Probably not.
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Mark | 8 Mar 2011 3:54 pm
Well they have given up on the Endowment claim front for those who mainly have a dose of selective memory syndrome & now its the mortgage itself. Anyone interested in setting up a buildings & contents complaints comapny, surely we would have an angle to engage with really sad people?!?!?.
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Donkeykong | 8 Mar 2011 3:55 pm
Is this going to be an area to refer to...?
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colin | 8 Mar 2011 3:56 pm
my god, what next, is there nothing that these ambulance chasers will not try and wring out.
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hard working broker | 8 Mar 2011 3:56 pm
FSCS will presumably have to pick up the tab.
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Steve | 8 Mar 2011 3:58 pm
If they follow the pattern in PPI claims, the onus will be on the broker to prove his innocence so clear documentation and evidence of research will be paramount. Given they will go back to 2004 it could be a painful exercise for any broker targetted by these companies. They wont be interested in the facts at the time - just what can be proven (or not) now.
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A Griggs | 8 Mar 2011 3:58 pm
While I understand the concept. What will it achieve ?? Are the clients that win going to have there mortgages wiped off and be left in the property? Or are they going to seek compensation ?
Bank charges, credit card fees, PPI on loans and now mortgages what’s going to next??
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Ian Griffiths | 8 Mar 2011 3:58 pm
It was only a matter of time before this happened.
Any good broker would have documented the reasons for their advice, as required and will have nothing to worry about, except the ball ache of having to justify their actions and the high cost involved in fighting their corner without remuneration.
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Andy | 8 Mar 2011 4:05 pm
It's the time (therefore the cost) of proving the mortgage advice is robust. For these 'here today gone tommorrow' claims firms it's a case of throw enough **** at the wall...It's a shame we can't recover our costs for proving there is no mis selling..eventually we have to pay our £500 to FSCS regardless. You may well spend most of the week disputing these claims. The customer will soon have no where to go for advice
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