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Broker sets up FCA redress scheme for debt consolidation loans

Money

Mortgage broker Mortgage Matters has agreed to set up an FCA-monitored redress scheme for possibly faulty advice it gave to historic debt consolidation mortgage clients.

Altrincham-based Mortgage Matters, which is no longer trading, has to appoint a third party to write to all its affected customers from between 1 January 2007 and 7 July 2014.

The letters say that Mortgage Matters “may not have fully considered the costs and implications” in recommending customers consolidate debts into their mortgages.

The letters add that debt management or insolvency arrangements might have been a better option for some of its 2007-2014 customers.

The third party will also run the redress scheme, including spotting shortfalls in the original mortgage advice given and working out how much consumers should be paid back.

The scheme will look at how the advice given by Mortgage Matters differed from the relevant MCOB rules at the time.

If affected consumers do not agree to the redress scheme then Mortgage Matters will signpost them to the Financial Ombudsman Service.

The details are laid out in a ‘voluntary application for imposition of requirement’ published on the FCA website.

Mortgage Matters has been approached for comment.

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