Financial Services Compensation Scheme  

FSCS receives 800 claims against adviser

FSCS receives 800 claims against adviser

The Financial Services Compensation Scheme has received more than 800 claims against a mortgage advice firm which it declared in default last month.

The lifeboat fund first received claims against The Mortgage Matters Partnership (TMMP) in November last year, when they were transferred from the Financial Ombudsman Service.

It stated most claims concerned mortgage and remortgage advice alongside some payment protection insurance claims.

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The Cheshire-based mortgage intermediary stopped trading in 2015, but in 2017 the Financial Conduct Authority directed the firm to write to customers offering redress for unsuitable advice.

At the time of the regulator’s intervention, TMMP admitted it may not have fully considered the costs and implications of consolidating debts when advising customers on debt consolidation mortgages.

A FSCS spokesperson said all open claims are currently in their "early stages" but confirmed a smaller percentage had been rejected, mostly commonly due to a lack of evidence.

According to the FCA register, TMMP is still authorised by the regulator.

In a list published earlier today (February 21) the FSCS announced it had declared the TMMP in default in January.

Glasgow-based adviser Allan McRoberts, also trading as A.M. Wealth Management Services, who advised people to invest in Harlequin, has also been declared in default.

Alex Kuczynski, chief corporate affairs officer at FSCS, said: "FSCS steps in to protect consumers around the UK when authorised financial services firms go bust.

"This vital service, which is free to consumers, protects your deposits, insurance, investments, home finance and debt management.

"We want anyone who believes they may be owed money as a result of their dealings with any of these firms to get in touch as we may be able to help you."