The Mortgage Advisory Centre (edinburgh)

Breezy

maccon wrote: »

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.

Macon

Any update? I'm in the same position the MAC and considering engaging a solicitor but would like to know all options before proceeding. How are you getting on?

Thanks

maccon

seil wrote: »

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!

Just to advise that I have finally been provided with compensation after a 5 year period. I went through the FSA and Financial Ombudsman and have just received a cheque for £4K last week. This may not be near the shortfall however, is a welcome boost and I can now let this lie. I would encourage you contact the Financial Ombudsman asap as I have heard on the grapevine that the current firm (First Mortgage) are also about to go under!!. Good Luck MACCON

iainwish

I work in financial services.

I have come across many clients less than happy with the Mortgage Advisory Centre (MAC)!

2 clients in particular were 'scammed' even after MAC were coming under regulatory investigation for selling endowments to the exclusion of repayment mortgages.

So they did not have to declare on returns to the regulator (FSA) that they were selling endowment plans, the ruse (used on 2 female first time buyers I've come across) used goes like this:

1. Set up mortgage on an 'interest only' basis.
2. Tell client that they need a 25 years savings plan to repay that mortgage (note lack of use of word 'endowment').
3. Tell client they need a level protection life assurance plan over 25 years plan including critical illness cover too for full amount of the mortgage.

MAC scored big time here as they would receive a fee for placing the mortgage off the lender, at least 130% of the first year's premium as commission on the savings plan plus about 150% of the first year's premiums on ther protection policy! Paid three times and they could hand on heart say to the regulator they were not selling endowment plans!

To make matters worse, the funds within the savings plan was taxed (unlike say ISAs), heavily charged and was 100% invested in a Fixed Interest fund so could never have reached the target amount! The savings plan also included life cover but that life cover was totally ignored when selling the extra protection plan.

In my 22 years in the business, I have rarely witnessed such sharp practice - what a con - even when the regulator was onto this firm they just changed tact and milked anyone they could get their hands on to the max.

The regulator failed here.

:mad:

scubapower

Is there any updates on this firm , morgage advisory centre in Edinburgh , iam just starting out with a claim , want to try and avoid all the pitfalls some people have had with this company , thanks Gavin

mic200202

You have to clear what exactly it is your are claiming about.The advice?The endowment? if there was one? Many endowment complaints have been time barred as shortfall notices (issued by the insurance co) have been issued several years ago.Even if an endowment policy has a shortfall is not grounds for a complaint - it is whether it was sold with the correct information and risk warnings appropriate for the time.Some of the threads above refer to a policy from 1991 - the rules were quite different back then and most mortgages were sold with such policies.Not all endowments have shortfalls as such.

scubapower

Hi there ,
My policy was set up in may 93 , my complaint was mis - sell and not being told the risks , which is totally true , i wasn`t offered any other product , this was the way to do it and remember the advisor saying i would get a lump sum aswell as the policy would make more than my morgage .the guy who owned the company closed it and opened another company called `first morgage `, i have just had a letter back saying no compensation , due to them being unable to determine if the company can on not pay compensation .unbelievable considerating he is still trading under a new name , any help grateful.