Violation of Rules of Some Brokers May Result to A Mis-sold Mortgage
A lot of home owners in the United Kingdom consider mis-sold mortgage as a major problem. The greediness of major financial institutions and their brokers is a major factor to this problem. Commissions of brokers or advisers are quite big if the company can approve the loan for you. Over a number of years, mis-sold mortgages became a serious problem and it’s only now that most of the people became aware to it and how serious it was due to the number of claims that the Financial Ombudsman is dealing with.
The Financial Services Authority set guidelines referred to as MCOB to control the increasing number of complaints regarding mis-sold mortgage in 2004. Proper guidelines where given to the brokers or lenders to give the respective clients detailed advice in giving loans. But, that guideline does not really worked properly, or maybe, some brokers ignored those guidelines foe their own good. They violate the rules and regulations in order for them to selfishly earn money, not thinking of the burden that the clients will face in the near future.
Many home owners felt that they received an unfair and bad advice which is not suitable for their needs and circumstances. And on the other hand, they where also asked to buy a PPI policy account and the cost will be added on top of the loan. Many financial companies are fined by the Financial Ombudsman because of violating the rules and regulations they implemented. Claims and complaints are being filed against companies that do not follow the rules, and the Ombudsman was really concern to it.
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Filed under Mis-sold Mortgage. Tags: mis-sold mortgage
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