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Almost half of complaints against mortgage firms upheld

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  • 30/09/2010
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Almost half of complaints against mortgage firms upheld
Complaints against mortgage business firms rose sharply in the first half of 2010 to 22,662 compared to 13,232 in H2 2009, FSA figures have revealed.

Of these, 47% were upheld compared to 34% of complaints in the second half of last year.

The FSA classifies just 2196 firms as mortgage businesses, made up of home finance administrators, home finance brokers and home finance providers.

The redress paid out by these firms more than doubled in the first half of 2010 to over £12.7m compared to just over £5m in H2 2009.

The FSA data showed that 87% of complaints against mortgage business firms were closed within eight weeks compared to 92% in H2 2009.

Nevertheless, complaints about home finance products, which include equity release deals, impaired credit mortgages and other regulated and unregulated home finance products, have fallen significantly in H1 2010 to 56,393 compared to 80,230 complaints in H2 2009.

Of the complaints received, 44% were upheld down from 49% in H2 2009, while £5.3m was paid in redress compared to more than £11m of redress in the second half of 2009.

Of the complaints, 89% were closed within eight weeks compared to 91% in H2 2009.

In addition, arrears related complaints fell from 50,004 registered in H2 2009 to 45,019 in H1 2010

Complaints against banks and building societies fell to 1,252 467 in H1 2010 from 2,225458.

However, this figure has been skewed by the dramatic increase in new complaints in the second half of 2009 that resulted from the inclusion of two years’ worth of complaints about unauthorised overdraft charges that had been omitted while a test case went to court.

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