Broker sets up FCA recourse system for debt consolidation loans
Mortgage broker Mortgage Matters has agreed to set up an FCA-monitored recourse system for possibly erroneous advice it gave to historic debt consolidation mortgage clients.
Altrincham-based Mortgage Matters, which is no longer in business, is to appoint a third party to write to all its affected customers between January 1, 2007 and July 7, 2014.
The letters say Mortgage Matters “may not have fully considered the costs and implications” in recommending customers consolidate debt into their mortgages.
The letters add that debt management or insolvency agreements might have been a better option for some of his 2007-2014 clients.
The third party will also manage the redress system, including identifying gaps in the initial mortgage advice given and determining the amount to be reimbursed to consumers.
The program will examine how the advice given by Mortgage Matters differed from the relevant MCOB rules at the time.
If affected consumers do not accept the redress system, Mortgage Matters will refer them to the Financial Ombudsman Service.
Details are set out in a ‘Voluntary Application for Imposing Requirements’ posted on the FCA website.
Mortgage Matters has been approached for comment.