The Advertising Standards Authority has forced claims management company Money Boomerang to pull a television advert in which it was found to have exaggerated the potential payout for mortgage misselling successful claim.
The firm, which targets borrowers who have received advice from intermediaries, has been running an advertising campaign since April though it is unknown if it has been running the banned advert since then.
The advert suggested that they may have a claim worth “tens of thousands of pounds” if they took a mortgage out before November 2004.
However, an unnamed mortgage adviser branded the advert misleading because of the exaggerated likely payouts.
Money Boomerang justified the advert by saying a borrower who was missold their mortgage typically overpays between £200 and £500 a month and the average length of the mortgage would be around five to eight years – resulting in a claim worth £12,000 to £20,000.
An expert in missold mortgage cases assessed four recent cases provided by Money Boomerang and recommended the customer pursue damages of between £3,377 and £29,828. The expert also backed Money Boomerang’s assertion that claims could range up to tens of thousands of pounds, saying it was “not unreasonable.”
But while the ASA “acknowledged” the four examples provided by Money Boomerang, it said these claims had not yet been taken up and therefore no decision as to the level of damages to be awarded had been made.
It also said it had not seen adequate evidence of supposedly successful claims where the firm said it had secured funds of up to £3,400 for borrowers.
Trinity Financial product and communications manager Aaron Strutt says: “There has, of course, been misselling in the mortgage market but it has perhaps not been quite as rife as suggested by Money Boomerang.”
Money Boomerang was not available to comment.