UK: MORTGAGE BROKERS STILL FAIL TO REFUND FEES
Article Abstract:
Approximately 39% of the customer complaints in the last six months of 2000 that were received by the Mortgage Board helpline sited the failure by a broker to return up-front fees in the event of a mortgage application failing to be completed. Mortgage brokers are only allowed to retain a GBu 5 fee from an incomplete mortgage application under the Consumer Credit Act 1974. The next most significant area of complaint was the 17% of customers who believe they were sold a product by a broker that did not meet their needs and 15% of customers complained about brokers suppling misleading information. The main customer complaint against mortgage lenders was that changes had been made to an original mortgage offer. The Mortgage board, which acts as the industry's regulator commented that the number of complaints received was very small when taken in the context of the size of the industry. As a response to the perceived complexity of the complaints system a new guide has been produced for unhappy mortgage borrowers who wish to seek redress.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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UK: POOR MORTGAGE PRACTICES PUT HOMES AT RISK
Article Abstract:
The Consumers' Association found that poor practices by mortgage lenders means homeowners' properties are at risk. Lenders are accused of failing to check whether mortgages can correctly repay loans. The Consumers Association claims that out of 20 largest lenders only the Halifax, HSBC and the Royal Bank of Scotland even checked to make sure an investment vehicle had been arranged to repay an interest-only loan. The Alliance & Leicester, Bradford & Bingley, Cheltenham & Gloucester and Woolwich are selected as those doing the least of their customers.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2000
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UK: MORTGAGE REGULATIONS CHALLENGED BY LFPA
Article Abstract:
The London Personal Finance Association (LPFA), which represents around 50 small lenders, has said that smaller providers will be forced out of business by the authorisation requirements contained in the FSA's proposals for mortgage industry regulation. The LPFA believes the proposals breach European human rights protocol and has threatened to go to court if they are enforced.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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