While the move provides a seamless transition for most potential complaints, AMI warns that some cases could still lead to litigation.
From October 31 (‘Mortgage Day’) complaints made against firms currently registered with the MCCB will be ‘transitioned’ to FOS. Though AMI is generally pleased that the move will greatly reduce the prospect of court settlements in the absence of transitional powers, worrying loopholes still remain.
AMI is particularly concerned over the status of some appointed representatives (AR) firms and their principals. 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. This leaves legal redress as the only formal option available. 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, says:
“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.”
To help intermediaries, AMI is due to publish guidelines on how best to present their case in the event of receiving an FOS complaint. This information will be available to members in AMI’s March newsletter which will be published this week.
