Monday, 10 December 2012

Thousands get mortgage compensation

Thousands of mortgage borrowers who fell into arrears are to be compensated after the City watchdog, the FSA, decided that they were treated unfairly.

They were customers of Cheshire Mortgage Corporation Limited, which is being fined £1.2 million for failing to treat customers fairly in the sale of mortgages and arrears handling from October 2004 to the end of 2009.

2,000 borrowers will receive an average of £1,000 each.

The FSA says the company didn't check properly whether some borrowers could afford their loans.

If they fell into financial difficulty, they faced unfair charges for handling their arrears and for the use of debt collection agencies.

Staff at Cheshire Mortgage Corporation, which is based in Cheadle, were paid bonuses to motivate them to collect arrears.

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