This week’s top contribution is from Andy Wilson for his response to the article: CMC targeting mortgage advice mis-selling with high volume of FSCS claims.
He said that with the number of endowment policy complaints having all but dried up due to time barring, and the PPI claims deadline in sight, it was perhaps inevitable that the claims management companies would move on to mortgages as their next strategy.
He said: “There may be rich pickings for companies who charge around a third of any compensation plus VAT and engender a ‘no win, no fee’ mentality. This makes it a numbers game, and the more cases they can throw at the Ombudsman the greater the chance of actually getting paid.
“New claimants are sought on social media with enticing headlines like ‘you could be owed thousands’ and ‘did you take a mortgage out between 2004 and 2016?’ with 2004 being the date mortgages became regulated by the FSA.
“The template complaint letter was also common with the endowment complaint culture, and once again it was a ‘tick as many possible reasons to complain as might apply’ nothing to lose and everything to gain process.
“I have no doubt there are some genuine claimants who have been wronged by their broker or lender – I see a good number every year – and the number of upheld claims supports this. Interest-only for example has left a lot of people in a sticky financial situation where the implications could have been better explained up front.
“However, some claims companies simply throw as much mud at the wall as they can and hope and pray some of it sticks in order to make their living.”