The Mortgage Advisory Centre (edinburgh)

edinlad_2

Hi there , don't know if anyone can help can but try.
I am currently helping my father with a mis-selling claim with a Standard Life policy sold to him by The Mortgage Advisory Centre ( Edinburgh) in 1991.
As well as a shortfall , he was sold an endowment running until he was 72.
The claim was started 4 years ago, we first complained to The Mortgage Advisory Centre but the claim was rejected by them.
We then took the claim to the Financial Ombudsman Service who started an investigation and there preliminary decision was in his favour. Unfortunately before the decision was final the company went into liquidation.
The case was then referred to the Financial Services Compensation Scheme who after investigation rejected the claim and advised we should be claiming against the Mortgage Advisory Centre (partnership) and not The Mortgage Advisory Centre LTD.They cant advise how to make a claim / progress the claim.
It has taken 4 years and it appears we are back to the begining.There must be hundreds of people in the same position.
Is there anyone out there who is / was in the same position ? If they were ,how did they resolve it or how are they currently dealing with it. Can anyone give any advice on what to do next?
The policy was sold in 1991, the Mortgage Advisory Centre rejected the claim, they contested the decision by the FSA, they went into liquidation, the liquidators have sent out a letter saying there has an outstanding claim, yet the FSCS have rejected the claim. Any help appreciated.

dunstonh

The FSCS will only deal with claims when the firm is in default. The firm isnt in default so you continue your complaint with the FOS.

edinlad_2

dunstonh

The FSO have washed there hands off this as well, they are saying they have no jurisdiction to intervene in cases involving The Mortgage Advisory Centre .
Looking for a way forward.

dunstonh

Have the FOS been made aware that the FSCS have found the firm not to be in default? The FOS may be basing their response on the old assumption that they were.

kevbev_3

Hi I am in similar way though my claim is from 1989 and with scottish amicuble through Mortgage advice centre.Was in contact with someone from FSCS who said my claim was against the partnership which changed in 1993.They suggested I use tracing firm to find them which I would have to pay for with no garentee of sucess.
Of my own back I now know who the partnership was and where one of them stays in edinburgh.
Where to go from here I am unsure about, as to try and claim against the person will require going to court. I have been informed and this will cost lots of money that I do not have.The person involved is still in the Morgagae buisness in edinburgh and has about 3 offices I think,as well as being a director of various firms so hes not short of a bob or 2.
Does any one know of a way of claiming against this individual,would the papers help , there has to be hundreds of people in the same situation as us with claims against this firm.
Help please.

dunstonh

Sole traders and partnerships carry the liability for the rest of their lives. They can only be on default if they have no assets.

Where to go from here I am unsure about, as to try and claim against the person will require going to court.

Going to court would be a waste of money. Especially when you consider that the majority of Scot Am policies are on track (less than 10% are expected to fail). You could spend all the money making claim which is hard to prove only to find you arent entitled to a penny even if it rules in your favour.

The person involved is still in the Morgagae buisness in edinburgh and has about 3 offices I think,as well as being a director of various firms so hes not short of a bob or 2.

You complain to him. He has the liability.

maccon

I have an almost identical situation. I was mis-sold a Standard Life endowment in 1993 by MAC. I complained directly to them, which was rejected. I then complained to the Financial Ombudsman who took over 2 years to find in my favour, instructing Mortgage Advisory Centre to pay compensation and interest within 28 days. 21 days later the MAC went into liquidation!! My claim was then taken up by FSA who then advised that, as my claim was prior to 1994, it was not against Mortgage Advisory Centre Limited, but Mortgage Advisory Centre, the partnership. Went back to Financial Ombudsman who said they could do no more and I should take independant action against the directors of the firm at the time. I then wrote directly to Robert McGrail, c/o First Mortgage, Walker Street, Edinburgh to receive no response. I am unsure how to take this forward with independant action, and also what level of compensation is due as this may affect a small claims court action. Please help!!

I, like you, do not know where to turn now and am worried that my claim may now be time barred. Any advice on this, and how to deal with this would be of help. I DO NOT WANT MAC TO GET OUT OF THIS WITHOUT SOME RECOMPENSE!!

I am aware that Robert McGrail and his fellow directors/partners cloned The Mortgage Advisory Centre Limited by setting up a new company called First Mortgage. The company was cloned and set up as First Mortgage to avoid paying compensation for mis-selling endowments. McGrail and colleagues have numerous other businesses, most of which are related to First Mortgage. Their registered office is Walker Street, Edinburgh (Not sure which number). McGrail tried to buy Heart of Midlothian FC 3 years ago, so is not short of money, and is obviously untrustworthy based on his web of companies all covering each others debts. First Mortgage is a successfull business in Edinburgh and provides 'free' advice to potential investors, and makes its money from receiving commissions from the lenders they set up the mortgages with, insurance companies they get life cover from and solicitors they send their clients to get their 'discounted' legal fees from. This is the main reason that they got into trouble initially as Standard Life, usually with a Bank of Scotland mortgage, were the best payers of commission at the time, and had an agreement for MAC to receive all the commission up front, rather than over a period of time. Would recommend many other Independant Financial Advisors before First Mortgage, as they are used to avoiding facing penalties for poor advice!!

birkslea

I have been processing a claim against the Mortgage Advisory Centre since 1993; again a victim of the change from partnership to Ltd status.

The key problem appears that the Financial Services Compensation Scheme (the body who are compensating those with claims against the limited company) deem that in law, the limited company has no liability for advice offered by the partnership. This appears to be contrary to the perceived wisdom that all assets and liabilities were assumed by the limited company when it was created in 1993. The liquidator KPMG state thay have no "locus" to act here! It may be useful for those in the know to offer a legal view here!

The Partners are therefore deemed by the FSCS to be solvent and also liable for claims. The most recent update I can offer is that Mr McGrail is operating through his solicitors (Warners Solicitors, 26 George Square, Edinburgh, EH8 9LD).

I first recommend raising this issue with your MP. I have found mine to be very useful in ensuring the FSCS, FOS etc respond in a timely manner. Copy your MP on all letters etc. Also ask him/her to write to the Treasury and ask their opinion on this case. Also ask them to contact the FSCS on your behalf. You pay your taxes so use your MP to voice your concerns.

Second, continued pressure on the FSCS is a good plan. write to Ms Lorretta Minghella, Chief Executive, FSCS, 7th Floor, Lloyds Chamber, Portsoken St, London, E1 8BN. If they can be convinced there are enough claims against the Partners then they may decide to treat those mis-sold before 1993 similar to those after the Ltd company was formed. Ask them to meet with you to discuss the case.

Third, legal action is a clear option which each case should carefully consider. Contact Warners Solicitors.

Fourth, return to your original endowment provider. I have heard recently a case where the IFA went into liquidation and the endowment company stepped in. In these troubled times, the big finance houses can do much to help so many caught up in this particular trap.

Finally, the Press remains a key component. This will have more weight the bigger the issue appears. Watch this space.

Finbar_2

My partner and I are another victim of MAC. We've had exactly the same experience as some of you - seems like we've fallen into no-mans land! Birkslea, thank you for the advice - I'll be starting this today!

Many thanks

seil

We are another couple stuck in no mans land with a mortgage sold by the MAC partnership in 1991. Also told by the FSC in 2006 to go direct to the partners - hopeless and impossible, as we have found as well.

We also get regular letters from the MAC Ltd liquidators and we have been listed as creditors of the company, which is a bit strange, if according to the FSC the Ltd Co has nothing to do with us.

In the meantime, we have been given advice along the lines of other forum members - the main bit being that the FSC is supposed to consider listing the partnership as in default if it becomes clear that they cannot meet their commitments.

We were told that if the FSC get enough complaints it will trigger that process. We have written to the FSC asking them to do this and I think the more letters they get to this effect the better. If I hear anything else I'll let you know!

maccon

Dear Seil,

I am finally moving forward with this claim via FOS. I went back to them to advise they had found in my favour but against Mortgage Advisory Centre Limited (In Liquidation) rather than the partnership which has time delayed settlement of my claim. They agreed to look into this again and I have just received some information requests to move this to the final decision...again. I am quite hopeful here so will post the outcome whenever it is available. You can send your information with a claim for miss-selling to Warners Solicitors, 26 George Square, Edinburgh who will log your claim.

Best of Luck.