Sub-prime mortgage lender ordered to pay redress
Permalink: Sub-prime mortgage lender ordered to pay redress
by Gill Montia
The Financial Services Authority (FSA) has fined Cheadle-based mortgage lender, Cheshire Mortgage Corporation (CMC), £1.225 million for failing to treat customers fairly in the sale of mortgages and arrears handling, between October 2004 to the end of 2009.
The regulator is also requiring the lender to carry out a redress exercise that could see around £2 million paid to 2,000 affected customers.
The firm’s chief executive officer, Henry Moser, has been fined £70,000 and agreed to step down from his role and Andrew Lawton, the firm’s compliance director, has been fined £13,500.
CMC operates in niche markets, including lending to customers with poor credit histories, and the FSA found that it was not always able to demonstrate that mortgages it sold were affordable, and did not always communicate regularly or fully with its customers.
In addition, the firm overcharged some customers in arrears and applied arrears charges inconsistently and unfairly.
The FSA also discovered that when arrears were transferred to Monarch Recoveries for debt recovery, borrowers were charged £150 despite Monarch being an in-house operation.
Click here to discuss this: Home Move property forums
Related stories to: Sub-prime mortgage lender ordered to pay redress
Previous: « House prices slip 0.7%
Next: Revival in housing market confidence »
Visited 28515 times, 2 so far today