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FSCS sees ‘notable’ rise in claims against brokers in 2016/17


The Financial Services Compensation Scheme saw a “notable” increase in compensation claims against mortgage brokers in the 2016/17 year following a landmark court case.

The 2013 Court of Appeal case, between Charmaine Emptage and the FSCS, established that consumers could claim against regulated mortgage advisers giving unregulated property investment advice.

As a result, the lifeboat fund says it saw a big rise in these claims last year, according to its annual report and accounts, released yesterday.

The FSCS says the “vast majority” of these claims were made against Fuel Investments.

Mortgage Strategy reported in February that the FSCS had received a wave of claims against Fuel, which had been advising clients to remortgage their UK homes to free up money for high-risk property investments.

The lifeboat funds says: “To date, the majority of these claims have been eligible.”


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FSCS invites claims following mortgage broker default

The Financial Services Compensation Scheme has alerted consumers that they may be eligible for compensation following a mortgage broker default. Manchester-based The Mortgage Point is among 18 other financial firms the lifeboat fund is inviting consumer claims against. The group also includes former IFAs with mortgage permissions such as London-based De Havilland Financial Management and […]


FSCS confirms £14m 2017/18 broker levy

The Financial Services Compensation Scheme has confirmed its £14m mortgage broker levy for the 2017/18 year. However, the FSCS says the cost of the final 2017/18 levy might still change. FSCS chief executive Mark Neale says: “I should caution that the use of the word ‘final’ by no means guarantees that our forecasts of compensation […]


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