Mortgage Broker Compensation Claims
Mortgage Brokers and Financial advisors are placed in a position of public trust. It’s assumed when you’re provided with advice it will be appropriate to your needs. Sometimes this is not the case. If you’ve lost money as a result of poor advice from an advisor, you may be entitled to make a compensation claim.
Brokers and Financial Advisers are regulated by the Financial Services Authority. This means that they have certain responsibilities to provide adequate services and truthful advice to customers. If you have lost money as a result of incorrect or insufficient information being given by an adviser, you could be entitle to a claim for compensation up to £50,000.
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This can be achieved by making a free compensation mortgage claim, or through the use of the Financial Ombudsman. Sometimes, however, financial institutions become insolvent. This leads to potential problems for consumers who believe that they have a claim against the firm in question. The Financial Services Compensation Scheme (FSCS). This is a government body charged with ensuring that consumers are compensated in the event of the insolvency of a financial institution.
In What Circumstances Can I Claim?
It may be useful to provide some details of circumstances that may produce a valid compensation mortgage claim against a mortgage adviser. The majority of claims with which the Scheme deals concern firms who have given customers incomplete advice. For example, a claim may be sustained if the firm had not informed the customer of the full range of mortgage options available, and the customer had subsequently lost money as a result of an unsuitable choice.
Many compensation mortgage claims deal with basic incompetence on the part of the broker; they are likely to be upheld if the adviser has arranged a mortgage with terms different to those requested by the customer, for example a longer or shorter repayment period, and the customer has lost money as a result.
