Simon Read: Mis-sold a mortgage? Don't use rogue firms

Ambulance chasers are becoming a major blight on the financial services industry. I'm talking about the claims management firms that contact people suggesting they may have been mis-sold a loan or mortgage. When folk hear the word "compensation" of course they're interested. But there's simply no need to go through – and pay – an intermediary to get recompense if you've been mis-sold by a bank or other lender.

This week I learnt of a particular irksome pair of rogues who are using their mortgage industry connections to encourage brokers to approach their clients with the promise of, presumably, riches if their claim is successful. I'm not going to name and shame the pair as I don't want to give them any further publicity, but both are reasonably well known in the mortgage broking and subprime sector.

In fact, in a classic case of poacher turned gamekeeper, both have been professionally involved with some of the lenders who may have been guilty of mis-selling. They will probably say that their inside knowledge helps their current role as claims managers. An alternative view is that they may well have been up to their necks in the mis-selling scandal and are now hoping to profit from it all over again by taking fat fees from borrowers.

The firm – and they're not the only ones by a country mile hoping to make a mint from the business – is hoping that mortgage brokers will accept money for putting their clients in touch with the claims managers. I suspect that the only ones who will be tempted to do so will be those who encouraged clients into taking out the wrong loan or unnecessary insurance in the first place. In other words, rogues looking to maximise profits from the very people they may already have disadvantaged.

Please don't think I'm having a go at mortgage brokers. The reputable firms still do a good job in helping people to find the right finance. But it looks as if the dodgy ones who encouraged clients to lie about their employment status or flogged them expensive cover are finding new ways to bleed people dry, which is alarming.

The regulators should take a stronger line in shutting down unscrupulous claims managers. Frankly, anyone who thinks they may have been mis-sold a mortgage or insurance should be able to take their own case to their lender or on to the Financial Services Ombudsman.

There really is no need to pay middlemen to chase compensation against a lender, especially when they may be the people who were responsible for many borrowers getting into a financial mess in the first place.

s.read@independent.co.uk

PROMOTED VIDEO
Sport
Ojo Onaolapo celebrates winning the bronze medal
commonwealth games
Arts and Entertainment
Rock band Led Zeppelin in the early 1970s
musicLed Zeppelin to release alternative Stairway To Heaven after 43 years
News
i100
News
Prince Harry is clearing enjoying the Commonwealth Games judging by this photo
people(a real one this time)
Extras
indybest
News
Richard Norris in GQ
mediaGQ features photo shoot with man who underwent full face transplant
Sport
Lionel Messi looks on at the end of the final
football
News
Gardai wait for the naked man, who had gone for a skinny dip in Belfast Lough
newsTwo skinny dippers threatened with inclusion on sex offenders’ register as naturists criminalised
News
Your picture is everything in the shallow world of online dating
i100
News
The Swiss Re tower or 'Gherkin' was at one time the UK’s most expensive office when German bank IVG and private equity firm Evans Randall bought it
news
Life and Style
Attractive women on the Internet: not a myth
techOkCupid boasts about Facebook-style experiments on users
Sport
Van Gaal said that his challenge in taking over Bobby Robson's Barcelona team in 1993 has been easier than the task of resurrecting the current United side
football
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Graduate / Trainee Recruitment Consultant - IT

    £25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...

    HR Business Partner - Banking Finance - Brentwood - £45K

    £45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...

    PA / Team Secretary - Wimbledon

    £28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...

    HR Business Partner (Maternity Cover 12 Months)

    £30000 - £34000 Per Annum 25 days holiday, Private healthcare: Clearwater Peop...

    Day In a Page

    The children were playing in the street with toy guns. The air strikes were tragically real

    The air strikes were tragically real

    The children were playing in the street with toy guns
    Boozy, ignorant, intolerant, but very polite – The British, as others see us

    Britain as others see us

    Boozy, ignorant, intolerant, but very polite
    Countries that don’t survey their tigers risk losing them altogether

    Countries that don’t survey their tigers risk losing them

    Jonathon Porritt sounds the alarm
    How did our legends really begin?

    How did our legends really begin?

    Applying the theory of evolution to the world's many mythologies
    Watch out: Lambrusco is back on the menu

    Lambrusco is back on the menu

    Naff Seventies corner-shop staple is this year's Aperol Spritz
    A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

    A new Russian revolution

    Cracks start to appear in Putin’s Kremlin power bloc
    Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

    Apartheid’s sadistic killer that his country cannot forgive

    The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
    Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

    Standing my ground

    If sitting is bad for your health, what happens when you stay on your feet for a whole month?
    Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

    Greene prays for chance to rebuild after injury agony

    Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
    Israel-Gaza conflict: Secret report helps Israelis to hide facts

    Patrick Cockburn: Secret report helps Israel to hide facts

    The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
    The man who dared to go on holiday

    The man who dared to go on holiday

    New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
    Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

    Best comedians: How the professionals go about their funny business

    For all those wanting to know how stand-ups keep standing, here are some of the best moments
    The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

    The Guest List 2014

    Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
    Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

    Jokes on Hollywood

    With comedy film audiences shrinking, it’s time to move on