Only one in ten mortgage mis-selling cases brought by claims management firms are upheld by the Financial Ombudsman Service (FOS).
The Daily Mail reports claims management firms are "duping" homeowners into paying typical upfront fees of around £500 in the mistaken belief there is a good chance of winning compensation. It said cold-calling claims management companies are targeting homeowners sold self-cert mortgages, a mortgage they could not afford or those who have borrowed into retirement. Claims management firms can charge fees of up to £500 for handling the case and take 25% of compensation won. However, claimants who go directly to the FOS for free have just as much chance of having their case upheld, ac...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
