Firms that fail to communicate clearly with mortgage endowment complainants face a visit from the UK’s regulator, after a review into the sector.

The Financial Services Authority (FSA) has published the results of its review into the mortgage endowment complaints system, after it requested 50 firms to supply samples of typical final response letters.

While the regulator said the documents it reviewed were broadly compliant with its rules, areas that needed improvement were identified. The regulator said where there were significant shortcomings in the quality of communications with complainants it would address the matter with the firms involved.

A spokeswoman for the FSA said the review was part of its ongoing thematic work into the sector to ensure customers were being treated fairly. She said: “The problems some firms are having is they are not explaining clearly to consumers the decision made and we have found if information to consumers is clear and not misleading, then a firm is less likely to be referred to the Financial Ombudsman Service.”

The regulator said in its findings that a final response, if done well, could result in the complainant being confident in the good faith, accuracy and robustness of the firm’s consideration of their complaint.

Peter Chadborn, principal at CBK, said his firm had worked with clients who received letters about their endowment complaint and it could often be confusing for the complainant. He commented: “There is no exact formula to explain to clients how it is worked out, so they often accept the decision on face value. If they can improve communications then that would be welcomed because from an intermediary’s point of view, we could then help the client understand how a decision was made.”