The industry regulator, the Financial Services Authority has warned lenders that they face ‘stiff penalties’ for not handling mortgage endowment complaints properly.
Allied Dunbar were on the receiving end of the most recent ‘stiff penalties’ when they were fined £725,000.
Our View
Lenders and providers are bursting at the seams with endowment complaints and so is the Financial Ombudsman Service. When we spoke to the FOS last week they claimed to have 25,000 uninvestigated mortgage related endowment complaints outstanding. Standards at providers and lenders are obviously strained and the handling of complaints is obviously suffering.