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Mortgage complaints double since 2006

by: Mortgage Solutions
  • 03/09/2009
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Mortgage firms received 12,716 complaints in the second half of 2008, according to the FSA.

This figure is double the amount of complaints received in the first half of 2006 when complaints  reached 6,837. However, it is below the 15,776 which were recorded in the first half of 2008.

The figures reveal that only 38% of all mortgage complaints were upheld by the FSA in the second half of 2008, down from 48% in the first half of 2006.

In terms of the complaints received, there were 71,406 complaints relating to flexible mortgages between the first half of 2006 and the second half of 2008.

Building societies have also seen a sharp rise in complaints against them with 79,349 made in the second half of 2008, compared to 38,989 in the first half of 2006.

Complaints on flexible mortgages reached a peak of 20,019 complaints in the first half of 2007.

Lifetime mortgages received 2,173 complaints between the first half of 2006 and the second half of 2008, reaching a peak of 404 in the second half of 2007.

Complaints relating to arrears handling more than doubled over the last two years, increasing from 13,784 in the first half of 2006 to 27,697 in the second half of 2008.

Self-cert mortgages received 14,029 complaints in the same period, with 3,419 being made in the first half of 2008.

There were also a large number of complaints made against general insurance intermediary firms in the second half of 2008 with a total of 115,242 complaints being lodged and 35% of them being upheld.

Dan Waters, director of retail policy and conduct risk at the FSA, said: “We expect firms to treat customers fairly by dealing with complaints promptly and efficiently. We are focusing even more attention, particularly through intensive supervision, on ensuring that firms are dealing with complaints properly.”

The FSA plans to publish aggregate data in October which will cover the first half of 2009.

 

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