Claims firms target mortgage market.

After targeting credit card companies, loans companies, endowment providers and banks the UKs claims industry has turned its attention to the mortgage market, but what will that mean for consumers asks mortgage and property portal obligo.co.uk

Claims management companies are targeting people who have been miss-sold mortgages - but many experts warn claims firms should be avoided as their fees and charges could leave many out of pocket.

As  people become aware that they could get redress on their mortgages if they were miss-sold, claims management companies are jumping on the bandwagon and promoting their services to people in the wake of many other types of claim either coming to an end or being ruled against, for example bank charges.

However, there is little hard evidence that claimants have a better chance of getting compensation by using a claims management company. And, in addition, paying a claims company to help you with your claim will actually leave you out of pocket as the charges made could be unnecessary

Although claims firms are forbidden from “cold calling” this only applies knocking on doors and other face-to-face meetings. The Ministry of Justice, which regulates the claims management sector, allows unsolicited telephone calls to people with promises to help them get compensation back in return for an upfront fee or on a no-win, no-fee basis.

The sales tactic employed by these firms often involves the use of self employed sales people purporting to be claims experts with promises of compensation regardless of the circumstances surrounding the mortgage sale.

For consumers the situation can be particularly bewildering according to Chris Gardner, spokesperson for Uk mortgage and property portal obligo.co.uk.

“Claims firms are targeting vulnerable borrowers, in particular, those with arrears and other credit problems, by offering the consumer hope that a successful miss selling claim can fix their financial predicament” said Gardner.

He went on to say “ there is no doubt that many consumers have been missold to, and for them the best way to seek redress is to follow the complaints process from the company who provided the mortgage”

According to the Council of Mortgage Lenders ,consumers in the UK are afforded some of the most robust protection anywhere in the world, as the Financial Services Authority insist brokers and lenders have a comprehensive complaints process. If consumer is not happy with the outcome of a complaint they can escalate it easily to the financial ombudsmen who will handle the complaint. In many cases this can result in compensation without having to resort to the courts. The service is free for consumers.

So what can consumers do to make sure they get a fair hearing if they wish to complain.Obligo.co.uk recommend the following:

1. In the first instance complain to the mortgage firm who sold you the mortgage. To do this contact the person responsible for compliance at the firm
2. Write clearly and concisely the nature of your complaint
3. If you are unhappy with the outcome of the complaint contact the Financial ombudsmen to make a formal complaint. You can contact them on 0300 123 9 123 or by email [email protected]
4. If you do decide to involve a claims firm, make sure that you choose wisely. Consider using the internet to research them, check forums and blogs for comments from people who may have used them. Consider approaching a solicitor directly.
5. Make sure that complaint you are being directed to make by a lawyer or claims firm is true. You could well incriminate yourself if you make false statements or claims about the nature of the complaint or allegations against a firm. 

Consumers can obtain more information about mortgage complaints from the following link

http://www.financial-ombudsman.org.uk

http://www.fsa.gov.uk

http://www.cml.org.uk

Consumers can obtain more information about mortgages and property, including free tools, calculators, property values and information from the following link

http://www.obligo.co.uk/

About obligo

Obligo is a new mortgage business based around a revolutionary concept that will provide consumers with tools and information about UK mortgages, whilst retaining a human aspect to case underwriting and application management.

Obligo intends to change the way UK consumers approach mortgages. Obligo is a unique collaboration of information and resources from both the UK mortgage and property markets.

Features that have recently only been available through websites and entities are collectively presented to the consumer in a simple, easy and effective manner. 

Real-time house price information, automated property valuations (AVM), consumer guides,market analysis and expert market commentary is available together with industry leading mortgage calculators and application tracking systems.

Obligo Ltd is a privately held company with a highly experienced and proven management team with proven track records in start-up aquisitions and sales in the mortgage and other sectors.

The founders have set a course in the changing world of financial services to deliver transparency and efficiency to the UK mortgage market .

for more information email [email protected]

Subjects