Cheshire Mortgage Corporation and their Chief executive moser Fined £1.225 million Which is part of the BLEMAIN Group reported today 10/121/2012
The FSA said about 2000 affected customers of CMC could now receive compensation
The regulator said that Cheshire Mortgage Corporation failed to treat some of its customers fairly when they fell into arrears, was unable to always show the mortgages it sold were affordable, and did not always communicate reguarly or fully with its customers
its investigation found that CMCL overcharged some customers in arrears and applied arrears charges inconsistently and unfairly
The FSA said they had charged customers £150 when they transferred arrears into its Recoveries company, dispite it being in-house
Tracy McDermott, director of enforcement and financial crime at the FSA said "CMCL@s lackluster approach to regulation combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.
The failings of chief executive Moser ,and director Lawton and CMCL were serious and let down a vulnerable group of consumers"
HO HO HO Merry Christmas
The FSA said about 2000 affected customers of CMC could now receive compensation
The regulator said that Cheshire Mortgage Corporation failed to treat some of its customers fairly when they fell into arrears, was unable to always show the mortgages it sold were affordable, and did not always communicate reguarly or fully with its customers
its investigation found that CMCL overcharged some customers in arrears and applied arrears charges inconsistently and unfairly
The FSA said they had charged customers £150 when they transferred arrears into its Recoveries company, dispite it being in-house
Tracy McDermott, director of enforcement and financial crime at the FSA said "CMCL@s lackluster approach to regulation combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.
The failings of chief executive Moser ,and director Lawton and CMCL were serious and let down a vulnerable group of consumers"
HO HO HO Merry Christmas
The FSA has fined mortgage lender Cheshire Mortgage Corporation Limited £1.2m for failing to treat customers fairly and fined its chief executive and compliance director.
The regulator says Cheshire failed to treat its customers fairly in the sale of mortgages and in arrears handling from October 2004 to the end of 2009.
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Cheshire chief executive Henry Moser has been fined £70,000 and agreed to step down from his role within six months.
Compliance director Andrew Lawton has been fined £13,500 and banned from holding a significant influence function.
The FSA also requires Cheshire to carry out a redress exercise that could see approximately £2m paid to around 2,000 affected customers.
FSA director of enforcement and financial crime Tracey McDermott says: “CMCL’s lacklustre approach to regulation, combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.”
In a statement, Cheshire says: “Such issues pre-date a comprehensive review of the firm’s procedures and corporate governance standards.
“We sincerely apologise to any customers that may have been affected.”
Perception Finance managing director David Sheppard says: “This will not be the last of this type of story. A lot of other firms will be looking over their shoulder, especially if they targeted the sub-prime market.”
The regulator says Cheshire failed to treat its customers fairly in the sale of mortgages and in arrears handling from October 2004 to the end of 2009.
Related articles
Govt donates £1m from FSA fines to military charity
Adviser anger as Capita FM escapes £4m FSA fine over Arch cru
Mortgage broker overturns £100,000 FSA fine for fraud
Govt will be able to force FCA to raise industry fees
Cheshire chief executive Henry Moser has been fined £70,000 and agreed to step down from his role within six months.
Compliance director Andrew Lawton has been fined £13,500 and banned from holding a significant influence function.
The FSA also requires Cheshire to carry out a redress exercise that could see approximately £2m paid to around 2,000 affected customers.
FSA director of enforcement and financial crime Tracey McDermott says: “CMCL’s lacklustre approach to regulation, combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.”
In a statement, Cheshire says: “Such issues pre-date a comprehensive review of the firm’s procedures and corporate governance standards.
“We sincerely apologise to any customers that may have been affected.”
Perception Finance managing director David Sheppard says: “This will not be the last of this type of story. A lot of other firms will be looking over their shoulder, especially if they targeted the sub-prime market.”
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