Following the recent announcement by the Financial Services Compensation Scheme, director of operations, Kate Bartlett, who confirmed "our role is to help people who have lost money as a result of doing business with an authorised firm who is unlikely to meet claims made against it, ensuring consumers receive the compensation they are entitled to" there has been an increase in companies who are not regulated by the Ministry of Justice operating in this sector.
The profile of these companies, who are sometimes, referred to as "ambulance chasers" often charge upfront fees to consumers; this practice needs to be questioned. Some companies have no expertise in mis-sold mortgage claims . This is an area which has caused many mortgage applicants, who have been refused loans concern.
Consumers have been warned about who they select to give advice on such important transactions as mortgage mis-selling . Robert Sinclair, director of the Association of Finance Brokers, says "Claims management firms and their irresponsible advertising are the cancer in our industry". These are strong words but underpin the financial services industry’s concern over vulnerable consumers being "preyed upon".
The Advertising Standards Authority continue to look at any breaches in the promotion of services in mis-selling claims and continue to ban firms who are misleading the consumer.
Mis-sold Mortgage Claims > Mortgage News
Consumers warned to be selective when selecting claims companies
Wed, 05 May 2010
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