13
Mar
Call for fairer treatment for mortgage holders
The Financial Ombudsman has raised concerns about the treatment of
homeowners who are struggling to meet their mortgage
repayments.
In a speech to the Council of Mortgage Lenders (CML), Tony Boorman,
decisions director and principal ombudsman, said that the service
has seen a 50 per cent rise in complaints about mortgages since
April 2007.
Many of these complaints revolve around exist fees, he
explained.
"The application of extensive fees for customers already
experiencing debt problems may not be fair treatment," he
commented.
Mr Boorman also spoke out against lenders who do not hesitate to
sell products to borrowers who are already overstretched.
He said that ideally a consumer should be aware of their own
financial capabilities and be able to choose accordingly, but added
that "in practice matters are not always as clear-cut as this
suggests".
The financial ombudsman was set up by Parliament to settle disputes
between businesses that provide financial services and their
customers.
