View more on these topics

MCCB warns of gap in consumer protection

The Mortgage Code Compliance Board has warned that without Ombudsman powers to rule on transitional consumer complaints, millions of existing borrowers will be left unprotected when FSA regulation comes into effect.

In response to the Treasury&#39s consultation paper on transitioning complaints, the MCCB says that unless there is a change in the law, customers with complaints about mortgages purchased before Mortgage Day, but not raised until after statutory regulation begins, will have no mechanism for independent review if the complaint is unresolved through the Financial Ombudsman Service&#39s internal complaints process.

The MCCB says this would leave a large gap in consumer protection which would potentially affect millions of mortgage borrowers.

At present complaints about products bought from firms who have registered with MCCB or the General Insurance Standards Council are dealt with under independent redress arrangements set up by these bodies. After statutory regulation comes into effect, complaints about products will be dealt with under the compulsory jurisdiction of the FOS.

Luke March, chief executive of the MCCB says: “The FOS&#39 remit should include complaints about mortgages taken out under the Code which arise after Mortgage Day. The Treasury is consulting on this and we need a positive response from the industry and from consumer bodies. A significant flaw in the handover of regulation to the FSA could leave literally millions of mortgage borrowers with no right of redress.”

The MCCB believes that in order to achieve the seamless transition sought by both the Treasury and the FSA, it is imperative that provisions are made to ensure that transitional complaints have a forum for determination. In the MCCB&#39s view, the &#39do nothing&#39 option is not an appropriate response for either the Treasury or the mortgage industry.


The scandal of the ordinary people allowed to own homes

From Nigel Grinstead and Jeff Cureton-RoyalSelf-certification mortgages should be banned. Why should people who can&#39t prove what they earn down to the last penny should be allowed to own a home? They should immediately apply for PAYE jobs and stop earning money that isn&#39t declared. If they work in restaurants where they are given tips […]

11,000 attend Property Investor Show 2003

The organisers of this years Property Investor Show at the Excel Centre in London say some 11,000 visitors were attracted to the three-day event. Many of the 130 exhibitors reported that the exhibition was a considerable boost to sale, with amongst others, specialist developer Country and Metropolitan revealing extra sales of £12.3m. Elizabeth Williams, sales […]

Newcastle launches 10-year fixed product

Newcastle has launched a 10-year fixed product with a rate of 5.99% until February 27 2014. The product offers borrowers a bi-annual opportunity to redeem their mortgage without penalty. Customers can redeem for free in December 2005 and then every two years until 2013. Robert Hollinshead, chief executive of Newcastle, says: “Although there is much […]

Trigold shrugs Off poor results

Ifonline Group, owner of mortgage sourcing system Trigold, has rebuffed industry criticism of the low profits and continued losses revealed in its 2002 results. The company made just £685,000 over the year against a loss of £5m. Auditor Moore Stephens reveals that the company was reliant on “additional funds” provided by principal shareholders to bring […]


News and expert analysis straight to your inbox

Sign up