Mortgage Introducer revealed last month that Wolverhampton-based Essential Mortgages had gone into administration leaving its staff jobless and thousands of customers having to rearrange their mortgage deals.
All enquiries have now been diverted to Manor Mortgages, which packaged cases for Essential.
One ex-employee who contacted Mortgage Introducer this week said: “In addition to clients being out of pocket, many self-employed advisers were not at Essential long enough to recover our £345 joining fee.
“I suspect that many unsuitable raw recruits to the industry were taken on board just so the fee could be collected.”
She added she is aware of over 100 employees who joined at the Lomeshaye Office (£34,500 banked) where none of them received the promised training or their money back.
A source at Manor Mortgages also informed MI that the directors of Essential had approached Manor asking it for references in order to help some ex-employees set up a new company.
He said: “The directors did approach us after Essential closed down saying they were looking to help some of their ex-staff set up a new venture. As far as we kno, the directors would not take up a directorship at the new company.”
Kevin Morgan, managing director of Consilium Financial Planning, said: “The regulator isn’t there to judge morals. If all the legal aspects were in check, then the ex-staff setting up a new company is fine. But if the directors of Essential were involved, I’m not sure I would want to deal with them.” The directors of Essential were unavailable for comment.
