Mis-sold Mortgage Claims > Mortgage News
Brokers May have Missold Mortgages when Selling PPI
Wed, 15 Jun 2011
Many mortgage brokers may have missold mortgages when selling Payment Protection Insurance (PPI).

A Part 20 claim permits mortgage lenders to bring in a mortgage broker as a Part 20 defendant which places the responsibility of the sale of unregulated products on to brokers.

Brokers are protected from such claims when selling regulated products like mortgages as they are sold under a pre-defined path regarding research and suitability for a client. Unregulated products which are packaged into a product like PPI or a secured loan are not subject to the processes of documentation enforced by the Financial Services Authority which leaves many mortgage brokers being blamed for misselling mortgages with PPI.

Clients who face repossession on mortgages sold with PPI can make the defence that the mortgage they took out could have been mis-sold as the PPI was mis-sold.

Mortgage brokers can protect themselves should they have kept all documentation and an audit trail can demonstrate that the products were not mis-sold and were appropriate for the client at the time.
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