The demand comes after one broker contacted Mortgage Introducer saying he was refused compensation for a client by packager Countrywide Mortgage Centres, part of the Countrywide group, after it sourced the wrong product for the client.
The client needed a non-conforming deal which the packager sourced and recommended a GMAC-RFC two-year discount product.
It was not until the client had received the offer that the broker, John Stewart of PMI Independent Financial Advisers, realised the deal was in fact a prime product.
As a result the client had to settle for a product at the same rate but only with a one-year discount where she will be paying £657 extra over the year and is fixed into the deal for three years.
On seeking compensation for the one-year discount lost, Stewart said Countrywide Mortgage Centres took no responsibility for the fault and informed him that it was up to him to check that the deal was the right one.
He said: “This is just ridiculous. The packager knew the severity of this case as it had done a complete credit check beforehand. The reason we used the packager was because it said it would source the products.
“This is outrageous. Basically they are saying, come and use us but we take no responsibility for the sourcing.”
Robin Gordon-Walker, press spokesman at the FSA, said: “The complaint would first be logged with the broker. But it is not as clear-cut as saying it comes down to the broker’s responsibility.
“The broker can deal with this situation in many ways. They can say it was the packager’s fault and seek recompense, or the broker has the right to go to the Ombudsman. But there are always two sides to it.”
Countrywide Mortgage Centres declined to comment.
