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FSA fines Cheshire Mortgage Corporation £1.2m

The FSA has fined mortgage lender Cheshire Mortgage Corporation Limited £1.225m for failing to treat customers fairly in the sale of mortgages and arrears handling from October 2004 to the end of 2009.

The CEO of CMCL, Henry Moser, has been fined £70,000 and agreed to step down from his role within three to six months.

Andrew Lawton, the firm’s compliance director, has been fined £13,500 and banned from holding a significant influence function.

The FSA has also required CMC to carry out a redress exercise that could see approximately £2m paid to around 2,000 affected customers.

CMC operated in niche markets, including lending to customers with poor credit histories.

The FSA found that CMC failed to treat some of its customers fairly when they fell into arrears, was unable to always demonstrate that mortgages it sold were affordable, and did not always communicate regularly or fully with its customers. 

Moser has been disciplined for failing to spot these problems and put them right.

CMCL overcharged some customers in arrears and applied arrears charges inconsistently and unfairly.  Customers were also sometimes notified of charges after they had been incurred.

The FSA also found that:

  • when CMC transferred customers in arrears to Monarch Recoveries for debt recovery, they were charged £150 despite it being an in-house company;

  • CMC did not always make a reasonable effort to reach an agreement with customers in arrears over method of payment; and

  • CMC did not always properly assess the affordability of mortgages by, for example, challenging a customer’s declared income.

Moser, as CEO, was ultimately responsible for the actions and compliance of the firm, however he failed to ensure the firm was being properly managed so that problems would be identified and remedied.

Lawton was aware of certain poor practices taking place at the firm but failed to put them right and demonstrated a lack of competence and capability in his role as a compliance director. 



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  • Post a comment
  • Tony Parsons 13th December 2012 at 11:59 am

    ray bingley | 13 Dec 2012 7:31 am

    That’s some assumption St Ray! Fortunately I didn’t submit any business to them and I am not C.O.W.B.O.Y qualified.

  • ray bingley 13th December 2012 at 7:31 am

    Tony Parsons | 10 Dec 2012 4:45 pm

    Bet you stil took the commission eh Tony?

  • Fat Mortgage Bloke 11th December 2012 at 10:23 am

    Caught up with them at last….made my day.

    Let us hope others ,no names no pack drill,are on the list!!!

  • Anon 10th December 2012 at 5:41 pm

    Henry Moser, Mike Rashman, Carl Montlake. All birds of a feather. How on earth Moser stayed out of prison I will never know.

  • Derek 10th December 2012 at 4:56 pm

    Henry Moser, Mike Rashman, Carl Montlake. The list goes on. Unlike Rashman & Montlake how on earth has Moser managed to stay out of prison?

  • Derek 10th December 2012 at 4:56 pm

    Henry Moser, Mike Rashman, Carl Montlake. The list goes on. Unlike Rashman & Montlake how on earth has Moser managed to stay out of prison?

  • Tony Parsons 10th December 2012 at 4:45 pm

    I’ve dealt with Cheshire in the past and have to say this doesn’t come as a surprise.

    Avoid at all costs!

  • The sceptical one 10th December 2012 at 2:31 pm

    ….and this is a surprise because… A colleague once told me he had seen blemaing at a trade fair in fancy dress as cowboys. Coincidence or design?

  • voomer 10th December 2012 at 1:26 pm

    Well, well, well, at last some form of justice has be served on this hyena of a company.

  • Broker 10th December 2012 at 12:45 pm

    No surprises there.

    Brokers should think twice before referring clients to Cheshire’s sister companies Blemain and Lancashire who avoid the above only because of doing unregulated business. The customer is certainly not their first priority.