Huntswood has expanded rapidly as the industry focuses on compliance issues, driven by FSA activity, the decline in equity markets and Consumers’ Association pressure. The Financial Ombudsman Service anticipates a 58% increase in complaints this year, which follows a 44% increase last year.
For example, Huntswood is the market leader in handling ‘mis-selling’ complaints and has handled about 10% of mortgage endowment complaints. In the last year, the number of endowment complaints submitted nationally has tripled. It is estimated that, on maturity, nine out of 10 endowment mortgages will suffer a shortfall averaging at least £11,000.
Huntswood’s clients include:
- 4 of the 6 major retail banks
- 6 of the top 10 mortgage lenders
- 7 of the 10 largest life and pensions providers
Cressida Hogg, Director 3i Reading, comments: “As a market leader, Huntswood is a perfect example of the kind of fast growing, dynamic company that we back as part of our core private equity business. We have a great track record in the financial services sector and look forward to working with management to continue to grow the business.”
Former Secretary of State for Trade and Industry, Lord Parkinson, will continue as Huntswood’s Chairman, a role he has held for the past three years.
David Brownlow, Chief Executive of Huntswood, comments: “Complaints and compliance outsourcing generally have grown rapidly and are set for further significant growth. We are committed to maintaining our leading position in this sector and with 3i’s involvement we are able to capitalise on the market prospects.”
