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Go straight to your UK mortgage provider with complaints

Date: Thu, 20 Oct 2005

Homeowners who may have been mis-sold an endowment mortgage policy are being advised to raise their complaints directly with the provider.

The Association of British Insurers (ABI) has raised concerns that many consumers are unaware they can complain to the company that initially sold the policy. This means that many people have lodged claims for compensation with claims management companies.

Thus the ABI are worried that many people may be losing out by using such companies as they usually claim around 25 per cent of the eventual compensation received in fees.

A recent study conducted by the ABI discovered that in the second quarter of the year 49 per cent of policyholders with complaints filed directly with the company had received help, compared to 46 per cent of customers that went to a third party for their compensation claims.

"There is no need for consumers to resort to using a third party to pursue a complaint," said ABI's director of life and pensions, Chris Kenny.

"A free process already exists within companies, and then via the Financial Ombudsman Service, that is open to everyone with a valid complaint."


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