A regulatory watchdog has backed the Financial Conduct Authority's action over a complaint involving a interest-only mortgage which a broker was alleged to have mis-sold.
The Complaints Commissioner found the FCA was right to direct the borrower to the Financial Ombudsman Service because it is not its role to handle individual complaints.
The complainant was concerned about the fact they could potentially lose their home because their mortgage broker had submitted false information.
After engaging a claims management company to help them over a period of two years, it turned out it would not be able to help the borrower, who complained of having "wasted two years".
But Antony Townsend, the Complaints Commissioner, said: "I am sorry that you are disappointed but, as I have said earlier, it is not the FCA's role to deal with individual complaints against financial services organisations, nor to regulate claims management companies – the FCA was right to direct you to the Fos and the [Ministry of Justice, which regulates CMSs].
"I realise that it is frustrating to be told to go to other organisations, but the FCA's advice was correct
"I recognise that the matters about which you have complained are serious ones for you, but I do not consider that the FCA has been at fault."
The complainant wrote to the FCA on two occasions to report the actions of their mortgage broker.
They said the FCA failed to properly consider the information they had provided or deal with it fairly.
The FCA rejected the borrower's complaint about its handling of the case and said their concerns about the mortgage broker were not a matter for it to resolve.
damian.fantato@ft.com
