The Financial Ombudsman Service announced today that it believes that consumers who were misled on the returns they should expect from their endowment mortgages should be compensated. There has been a large drop on returns for endowment mortgages, and many who rely on this income have been left high and dry.
“We can and do make significant awards, where there is a clear link between poor advice given and losses incurred by the consumer. Of course, the issues raised in complaints are by no means always cut and dried. We recognise that some customers will, however unwisely, seek to maximise their borrowing potential. Any redress we direct a business to pay will reflect the contribution of both parties to the problem. But in some cases the impact of poor advice can be clear and significant.” stated Tony Boorman, the decisions director and principal ombudsman at the FOS.
According to Boorman, there has been an increase of over 50% in the amount of complaints the FOS has fielded on endowment mortgages. Although not all holders of endowment mortgages can be compensated, they hope to help those who were truly misled about what they should expect from their endowment mortgages.
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