Facing a claim of mortgage mis-selling? Attack is the best form of defence!

Claims Management Companies are continuing to hit the headlines with their growing numbers and their aggressive campaigns to recruit victims of mortgage mis-selling.

Eddie Goldsmith
11th June 2013
Eddie Goldsmith - GW
Potential claimants, their appetites for financial compensation sharpened by the PPI mis selling scandal, look at mortgage mis-selling as another money making opportunity. 

Claimants don’t understand the difference between systemic mis-selling of an insurance largely driven by sales targets rather than customer needs and the sale of a mortgage which is underpinned by robust and regulated advice from a qualified mortgage broker or an adviser employed directly by a lender. 

The CMC and claimant both have little to lose in making a claim, no matter how spurious.  They can be confident that, if the broker or lender doesn’t take the claim seriously, they can refer the claim on to the Financial Ombudsman at no cost to themselves.  That means lenders and brokers alike, with one eye on the FOS limit of 25 free referred claims, reluctantly conclude that they’ll have to invest time and effort in investigating and refuting any claim that is raised.  

Despite the recent ruling of Judge Gosnell in the case the Batesons took against Darren Flicker that vividly illustrates the difficulty of conclusively proving mortgage mis-selling, there’s little evidence to suggest that CMCs are taking flight.  So, if faced with a claim, what is the best approach?

Well, certainly don’t ignore it!  As I said earlier the circumstances around the sales of mortgages are vastly different to PPI and that should mean that you have comprehensive records of the sale to rely on.  Keep your paperwork in good order so that if you need to use it to defend yourself and your professional reputation it can do the best possible job particularly since the ombudsman seems to assume guilt until you’ve proven your innocence (though please don’t quote me on this).   

Since your rights in law differ from those in a civil court and claims through the ombudsman do not carry the same burden of proof I’d recommend engaging a legal specialist, such as GW Defend, to act for you. GW Defend offers a fixed menu service for dealing with any cases from an initial request for information right through to defending a claim referred to FOS, if the claim gets that far. 

Attack really is the best form of defence here as we’ve found that if an experienced person deals with a complaint and they can draw upon clear and comprehensive documentation (including a written note of all conversations) to document a full, objective, professional and substantiated response this can lead to the claim being abandoned immediately in as much as half the cases. 

And if the claim does reach FOS, a lawyer can bring their experience and knowledge to bear in the preparation of the strongest possible defence.  And when it’s not only your professional reputation at stake but also your business and livelihood you’ll want to be sure you have got the strongest possible defence!
More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.