Did you know that many UK consumers were mis-sold mortgages? Customers have started to make claims to their lenders and fight for a refund.
No doubt you’ve heard about the scandal of mis-sold PPI. Radio and television adverts are currently populating our lives with information about the PPI deadline and why consumers need to make a claim. 29th August 2019 is the cut-off date for all PPI claims.
However, the lesser-known mis-selling of mortgages is having a dramatic impact on those affected. A mortgage is likely to be the biggest loan an individual or couple will have in their lifetime. As such, if this was not sold in the correct way, it can have a huge financial impact. Making a claim for a mis-sold mortgage can result in customers getting a refund and re-evaluating their mortgage options.
Claims companies can help customers to make a claim to their bank or lender about a mis-sold mortgage. To do so, companies require claims software to keep track of all information and correspondence.
How Were Mortgages Mis-Sold in the UK?
Mis-selling comes in various forms. In the case of mis-sold mortgages, this means that the customer received bad advice, was not treated fairly or was not told all of the terms and conditions of their mortgage sale. This might have been the fault of the bank, lender or mortgage advisor.
There are multiple ways that mortgages were mis-sold. These include:
- Interest-only mortgages weren’t explained correctly, with customers not being told how much they’d pay at the end
- A budget analysis did not take place to understand if an individual was committing to a mortgage that they could or couldn’t afford
- The mortgage end-date is after a retirement date
- High levels of commission for the broker weren’t disclosed to the customer
These are just a few of the ways that mortgages were mis-sold and, for many people, being mis-sold a mortgage has had a significant impact on their financial circumstances. If a mis-selling case can’t be settled, the Financial Ombudsman will evaluate the case. The Ombudsman has dealt with numerous cases of mis-sold mortgages and will independently review a case to decide the outcome.
What Does Claims Software Do?
Effective claims software can be tailored to different claims. For example, a case of mortgage mis-selling requires different information from a PPI or flight delay claim, although the software’s role is the same.
LogiClaim, the claims software from Logican, has the following capabilities:
- One location — information for each claim can be stored by the software in one easily accessible location.
- Tracking process — each step of the claim can easily be updated, so both the company and the client know how the case is progressing.
- Automates communication — emails and letters are sent automatically to both clients and lenders involved in the case. This can include invoices sent to clients regarding payments, which can be paid in instalments.
- Scanning facility — this allows incoming documents to be scanned and linked to the correct claim. Barcodes can also be used to automate this process.
Making a claim for a mis-sold mortgage can take a number of months and be a stressful process for a claimant. However, being able to reassure customers that you are using quality software that will keep them up-to-date throughout can make the process easier and less stressful.
Logican provides claims software for companies handling customers mis-sold mortgages. Request a free demo to see how much it can help your business.
