Chesnara, a provider of endowment mortgages revealed today that their profits are going up as the complaints they’ve had about their loans has gone down. Previously, the company had been besieged with complaints, but experts agree that they have handled the matter very well. Many consumers have been unhappy with low returns on endowment mortgages, despite the fact that companies are bringing in profits.Chairman, Christopher Sporborg, says: “Our recent experience of mortgage endowment mis-selling complaints has been generally positive. The number of complaints has reduced significantly and an increasing proportion of those received are time-barred in line with FSA rules, while uphold rates on those complaints which are not time-barred have increased. ”Although we do not believe that this issue has fully run its course, we do feel able, however, whilst maintaining an element of conservatism, to reduce our redress provisions, by £2.8 million, based on our revised expectation of future complaint activity.”The company also plans to continue with their acquisition plan, despite failures to purchase two closed life groups. Sporburg commented, “However, as the business matures the opportunity for this reduces and we have therefore also invested management time in reviewing other potential value-enhancing opportunities in the financial services sector.”
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