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  • FIRST POST
    • time-4-a-new-start
    • By time-4-a-new-start 22nd Feb 19, 9:02 PM
    • 64Posts
    • 26Thanks
    time-4-a-new-start
    Mortgage Claims - Sign or not to sign
    • #1
    • 22nd Feb 19, 9:02 PM
    Mortgage Claims - Sign or not to sign 22nd Feb 19 at 9:02 PM
    Hi

    I have a very high interest-only mortgage that was sold to before the market crash. It was quite a large mortgage which was given to me as a single young person earning just a modest amount - like thousands of others at the time.

    Now in large negative equity with no way of repaying the full amount, I looked at the mortgage claims against providers and brokers who miss sold mortgages. I went through an initial review with Mortgage.claims and after a few months have been told that a review was completed and I have a case to proceed with.

    Now I know this is probably what they say to many people, but I have been given a legal doc from Quanta Law to act on my behalf on a no win no claim base. Their fee if successful is 25% if settlement prior to court and 35% if it goes to court.

    I have never applied for any type of PPI or other miss sold claim, so am looking for advice from anyone who has gone through this. The no claim no fee sounds good, but I notice in the form they say that i may wish to take out insurance to cover the risk of my case being unsuccessful? How does that work with a no win no fee base? Is that if it gets to court and I lose then I have to pay their fees?

    Any advice would be welcome

    Thanks
Page 1
    • zx81
    • By zx81 22nd Feb 19, 9:20 PM
    • 24,108 Posts
    • 26,835 Thanks
    zx81
    • #2
    • 22nd Feb 19, 9:20 PM
    • #2
    • 22nd Feb 19, 9:20 PM
    If you believe you have a complaint, simply make it yourself.

    Never use a claims company. All they can do is post your complaint. Anything they make up is going to come back to bite you.
    • dunstonh
    • By dunstonh 22nd Feb 19, 9:24 PM
    • 98,597 Posts
    • 67,055 Thanks
    dunstonh
    • #3
    • 22nd Feb 19, 9:24 PM
    • #3
    • 22nd Feb 19, 9:24 PM
    I have a very high interest-only mortgage that was sold to before the market crash.
    That is key information as the FOS typically reject interest only mortgage complaints where the mortgage was taken out before the credit crunch. There are a small number of exceptions but the expectation is rejection.

    Even when upheld, the FOS position is to compare where you would have been had you rented. They include any gains in value you have had from purchase. For most people, that means the redress is zero.

    In a recent case that was upheld, the FOS said the person would only get redress if they sold the property within 12 months at market value and suffered a loss over the purchase price.

    told that a review was completed and I have a case to proceed with.
    What a surprise. As a media article recently said, the CMC has virtually no costs and can put in complaints with no recourse and they know full well that some will stick.

    A number of the CMCs active in this area (and there are not many due to the low success rate), make their money from a few areas.

    1 - they package their claims to solicitors who buy the package
    2 - they crowdfund so-called investment returns to mugs who are told their returns are linked ot the returns. (all unregulated and highly suspect)
    3 - they come back to you later in the process and say that you have a case and can get xx,xxx but the solicitors need x to proceed.
    4 - they make money on the insurance.
    5 - a cut of the small number of cases that succeed.

    it is difficult to know what your one is doing.

    Any advice would be welcome
    The complaints process covering mortgage advice after October 2004 is regulated by the FCA and free of charge for you to use. It is generally more consumer friendly than the courts. There is no need to use a CMC or the courts.

    For reference, Quanta Law was only granted their licence from 1st October 2018 and only become registered in Feb 18. They happen to be in the same building as "mortgage claims".
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • time-4-a-new-start
    • By time-4-a-new-start 23rd Feb 19, 7:45 AM
    • 64 Posts
    • 26 Thanks
    time-4-a-new-start
    • #4
    • 23rd Feb 19, 7:45 AM
    • #4
    • 23rd Feb 19, 7:45 AM
    Thanks for the posts everyone
    • time-4-a-new-start
    • By time-4-a-new-start 23rd Feb 19, 7:52 AM
    • 64 Posts
    • 26 Thanks
    time-4-a-new-start
    • #5
    • 23rd Feb 19, 7:52 AM
    • #5
    • 23rd Feb 19, 7:52 AM
    Thought it would be too good to be true. What would be the process with the FCA? I noticed they published a news release last Jan about trying yo sort it would with the lender rather than a claim.

    https://www.fca.org.uk/news/press-releases/fca-urges-action-on-interest-only-mortgages
    Last edited by time-4-a-new-start; 23-02-2019 at 7:56 AM.
    • -taff
    • By -taff 23rd Feb 19, 8:02 AM
    • 10,624 Posts
    • 15,331 Thanks
    -taff
    • #6
    • 23rd Feb 19, 8:02 AM
    • #6
    • 23rd Feb 19, 8:02 AM
    The FCA don't do consumer complaints.
    • time-4-a-new-start
    • By time-4-a-new-start 23rd Feb 19, 8:25 AM
    • 64 Posts
    • 26 Thanks
    time-4-a-new-start
    • #7
    • 23rd Feb 19, 8:25 AM
    • #7
    • 23rd Feb 19, 8:25 AM
    So it would be the ombudsman then
    • Moneyineptitude
    • By Moneyineptitude 23rd Feb 19, 9:41 AM
    • 24,922 Posts
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    Moneyineptitude
    • #8
    • 23rd Feb 19, 9:41 AM
    • #8
    • 23rd Feb 19, 9:41 AM
    So it would be the ombudsman then
    Originally posted by time-4-a-new-start
    No.

    You'll only have access to the Ombudsman after you've complained directly to the seller of the insurance and been rejected. You cannot go directly to the Ombudsman until the seller has had a chance to consider any complaint you might make.
    • time-4-a-new-start
    • By time-4-a-new-start 23rd Feb 19, 10:15 AM
    • 64 Posts
    • 26 Thanks
    time-4-a-new-start
    • #9
    • 23rd Feb 19, 10:15 AM
    • #9
    • 23rd Feb 19, 10:15 AM
    Ok. As it's not insurance I would have to make a direct claim myself against the mortgage provider first and then go to the ombudsman after?
    • -taff
    • By -taff 23rd Feb 19, 2:37 PM
    • 10,624 Posts
    • 15,331 Thanks
    -taff
    Yes, and as Dunston says, expect to be rejected and you won't be disappointed if you are.
    One other thing, if a broker sold you this pre 2005, you can forget about completely.
    • time-4-a-new-start
    • By time-4-a-new-start 23rd Feb 19, 8:32 PM
    • 64 Posts
    • 26 Thanks
    time-4-a-new-start
    No It was 2008

    When I make the complaint direct are there any letter templates I could use? I know the site has templates for a few things
    • dunstonh
    • By dunstonh 23rd Feb 19, 10:26 PM
    • 98,597 Posts
    • 67,055 Thanks
    dunstonh
    Ok. As it's not insurance I would have to make a direct claim myself against the mortgage provider first and then go to the ombudsman after?
    Originally posted by time-4-a-new-start
    Just having an interest only mortgage is not grounds for complaint. You must have received advice. And you must have bought the interest only mortgage after October 2004 (and not had it previously).

    If you bought the mortgage from a bank then its unlikely you received advice. Most banks used non-advised sales pre-credit crunch. So, they can just reply to any complaint that they did not provide advice you chose the product.

    If you bought via a broker, then you complain to the broker as they didn't do non-advised sales. Although not all mortgages were regulated pre-credit crunch.

    It is important you realise that unlike a bank, a mortgage broker is likely to be small local company with a handful of staff. Any try-it-on complaint is going to impact on the mentally and financially even if rejected. You are not complaining against some faceless multi-national bank here. So, think seriously before you attempt to ruin someone's life.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Mortgages adviser30
    • By Mortgages adviser30 22nd Sep 19, 4:22 PM
    • 1 Posts
    • 0 Thanks
    Mortgages adviser30
    Or you could just take responsibility for the fact that you took out an interest mortgage of your own fee will and now you're trying to place the blame on someone else for helping you get the mortgage you wanted?
    • Moneyineptitude
    • By Moneyineptitude 22nd Sep 19, 8:02 PM
    • 24,922 Posts
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    Moneyineptitude
    Old thread.
    • Myatoc46
    • By Myatoc46 6th Nov 19, 4:31 PM
    • 1 Posts
    • 0 Thanks
    Myatoc46
    Help!
    We enquired with mortgage claims if we had been over charged interest on our repayment mortgage with Northern Rock now whistle tree, & after looking into this they said that we had a case & we would be passed to their solicitors, quanta law. We digitally signed their paperwork to go ahead with the claim but are now worried after hearing about quanta law that we will just be left paying a loan for their fees! Is there anything we can do?
    • zx81
    • By zx81 6th Nov 19, 4:41 PM
    • 24,108 Posts
    • 26,835 Thanks
    zx81
    Check the terms of what you signed to see what cancellation clause is in there

    And don't sign any more contracts with claims companies. There's easier, and more enjoyable, ways to dispose of your money.
    • The_squirrell
    • By The_squirrell 6th Nov 19, 4:58 PM
    • 174 Posts
    • 320 Thanks
    The_squirrell
    That will be Quanta Law who are based at the same address as Mortgage.Claims and have been set up entirely by them to handle the spurious and unfounded claims for compensation that these loans will pay for! While Mortgage.Claims say they earn nothing from you......they most certainly do!



    The usual advice applies here. Steer well clear! Offering quotes of 000's in order to get people to sign is simply misleading and designed to make money for them and nobody else!
    I appreciate that this is an older thread, but the demise of the PPI gravy train is seeing these bottom feeders rise to the surface and this will become more relevant over the coming months I fear!
    Last edited by The_squirrell; 06-11-2019 at 5:00 PM.
    I work in Data Protection and spend my days dealing with CMC's. Only here trying to help!!
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