The Financial Ombudsman Service is continuing to receive “large numbers” of mortgage mis-selling complaints.
The FOS gives a round-up of recent complaints in its latest newsletter. In one case, a couple were wrongly advised to surrender two mortgage endowment policies they had taken out with the same firm 10 years earlier.
An internal investigation at the firm involved concluded that the policies had been churned by an adviser who claimed extra commission on the new ones sold to the couple. The FOS ruled that the couple should receive both the firm's original offer of compensation plus extra for the churning of policies.
In another upheld compliant, the FOS found in favour of a borrower who had taken a mortgage endowment policy in the belief it was guaranteed to pay off his mortgage. The FOS concluded that the firm's literature was “highly misleading”.
The FOS gives examples of mortgage endowment complaints it has rejected. These include a compliant filed by a borrower who claimed an adviser had guaranteed an endowment surplus sufficient to buy a holiday or new car.
Th FOS rejected this complaint on the grounds that there was no documentary evidence of any such guarantee.