From 31 October, or Mortgage Day, complaints made against firms, currently registered with the MCCB, will be ‘transitioned’ to the FOS. Though AMI is generally pleased that the move will greatly reduce the prospect of court settlements in the absence of transitional powers, it said ‘worrying loopholes still remain.’
If a firm attracts complaints arising from before Mortgage Day and then becomes an AR, FOS will not be able to look at the complaint. Legal redress then becomes the only formal option available, said AMI.
With networks already starting to vet ARs in preparation for Mortgage Day, it is understood that some will require ARs to fully disclose their complaints history.
Chris Cummings, Director of AMI, said: “We will be closely monitoring FOS activities in the mortgage industry and lobbying for our members. In particular, FOS must judge complaints against current best practice rather than any subsequent reinterpretation of the rules.”
“FOS will be a new body for many mortgage intermediaries. It is important that members understand how it works and how to best present their case in the event that FOS receives a complaint about them.”
AMI is due to publish guidelines for brokers on how to present their case in the event of receiving an FOS complaint in AMI’s March newsletter
