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FOS warns of poor advice clampdown
22 March 2008
The Financial Ombudsman Service (FOS) has warned that it will make ‘significant awards’ for consumers who have been damaged by poor advice.
Speaking at the Council of Mortgage Lenders’ seminar on complaints handling, principal ombudsman, Tony Boorman, insisted that the FOS was ready for an upsurge in mortgage complaints as the credit crunch squeezed borrowers.
However, while he highlighted that consumers should shoulder some burden for the debt they take on, any evidence of inappropriate behaviour by either brokers or lenders would be punished.
Boorman said: “The consumer knows their own financial circumstances and if the costs of the mortgage are clearly explained, they should readily be able to assess how affordable that mortgage is for them.
"But in some cases the impact of poor advice can be significant. We can, and do make awards where there is a clear link between poor advice and losses incurred by the client.”
Mike Fitzgerald, sales director at Brentchase Financial Services, commented: “It’s nice that the Ombudsman recognises that clients have a responsibility to themselves.”