Mortgage lenders cut out endowment middle man

08 August 2005 / by None
The Bradford & Bingley (B&B) has announced that in the future it will not use companies that chase up mis-sold endowment mortgages.

The policy announcement comes in the wake of a similar statement from the Prudential which stated that it also plans to cut out the middle man in endowment complaints cases.

Both organisations have advised borrowers to refer themselves to the Financial Ombudsman Service instead of resorting to third party companies.

Nickie Aiken of B&B told the Bradford Argos: "Customers are being left financially disadvantaged by using such firms.

"If they have a successful claim it means they will be awarded a sum to pay the shortfall of their outstanding mortgage.

"However, by using a claims firm they could loose up to half of the sum awarded which means they won't be able to pay off their loan and be left is similar circumstances before the claim was made."

She added: "We are fully aware of our regulatory obligations to our customers and believe our position treats them both fairly and complies with the law."

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