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Ambulance chaser targets brokers who have mis-sold mortgages

08 March 2011
Written by rosalind renshaw

An ‘ambulance chaser’ has launched a no-win, no-fee service with mortgage brokers in its sights.

Brunel Franklin, a financial claims specialist, aims to get customers refunds against mis-sold mortgages.

The Cheshire-based firm launched the new service yesterday, and says it has won over £25m for clients in other sectors, including mis-selling of Payment Protection Insurance.

Sally Bowyer, managing director of Brunel Franklin, said: “The mis-selling of home owner mortgages has become a major problem in recent years and months.

“As a result, the FSA is clamping down on a number of mortgage brokers accused of mis-selling mortgages.

“In 2008 the FSA delivered a key message that it was concerned about some mortgage brokers selling contracts to potential home owners and either concealing details about the mortgage or encouraging them to inflate their income for the purpose of gaining a larger mortgage.

“This, and recommendations to take interest-only mortgages with no means to repay, are just some of the examples of mortgage mis-selling.”

She said that in some cases, individuals were under the impression that steps taken by the mortgage broker were in their interest when in fact the sales person may have been benefiting from additional commission.

She said that over 300,000 people in the UK might have a mis-sold mortgage.

Brunel Franklin will charge 25% plus VAT if it wins a mis-sold mortgage refund.

Comments

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    I'm not easily impressed. . . but that's ipmrsseing me! :)

    • 24 April 2011 17:51 PM
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    Simple really.... Just submit your clients to the www.mortgagecompensationscheme.org.uk. That way they keep 100% of any refund and are very happy with you! Oh....and they dont charge upfront either. Win win.

    • 09 March 2011 21:11 PM
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    Well I am unconcerned about this as I never sold a self cert and I have been in financial services since 1992. It was always unethical and despite the criticism of my colleagues and employers alike I did not take the easy road.


    However, the self cert product was designed to be used in this way and why are we now surprised that the blame falls on the broker and not the designer.

    • 09 March 2011 09:04 AM
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    Be careful contacting these complainants yourself as it may invalidate your liability insurance.

    • 08 March 2011 14:47 PM
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    Have to agree in general with Marky B on this one.

    Only problem with his approach I can see is that when you ask "Who told you to lie about your income?", all they have to do is say "no-one, I just did it" and you're stuffed for failing to verify...

    • 08 March 2011 14:21 PM
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    Vulnerable and hapless non-reading and impecunious borrowers and this cadaver chaser were made for one another. Faced with the prospect of a few quid for nowt, just about every low life borrower out there will have been mis-sold won't they? The way to deal with this is easy brothers. The initial letter will doubtless be full of multifarious allegations. Ignore the ambulance chaser and write to the borrowers directly reminding them that there are defined complaint processes - take the fishing letter as a complaint and respond to it in the normal way and cut the vultures out of the loop. Look at the allegations and seek further and better particulars of the claim and the allegations. For example - in response to a claim that the customer was asked to inflate their income - ask who said this to them and precisely when. Test every allegation along these lines. If there is a genuine complaint, remind the borrowers that they can seek redress from the Ombudsman which won't cost them anything. If everyone does this then the necrophiliacs behind the 'service' will soon realise that they ain't going to make any money. Play these bar stewards at their own game and have faith - fight every claim, rise to the challenge - this is a rallying call bring it on - we are ready and waiting.

    • 08 March 2011 11:02 AM
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    'What's the betting that these guys are all ex mortgage brokers...that sold lot's of self cert, interest only mortgages? '
    I could not agree more, and if the market was better they would still be selling them not trying undermine the profession

    • 08 March 2011 09:40 AM
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    What's the betting that these guys are all ex mortgage brokers...that sold lot's of self cert, interest only mortgages?

    • 08 March 2011 09:08 AM
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