Filter complaints so only valid claims reach FOS, warns AFB

Brokers need to improve their complaints handling strategies to ensure only valid grievances are sent to the Financial Ombudsman Service (FOS), according to the Association of Finance Brokers (AFB).

Robert Sinclair, director of the AFB, said many intermediary complaints could be dealt with effectively in-house. He added: "But brokers do not make it easy for clients, because their in-house strategies for dealing with ­complaints are not robust enough."

Sinclair's concerns extend beyond the secured loans and payment protection insurance market. He said mortgage brokers need to look at their businesses too.

Fahim Antoniades, director at Quantum Mort­gages, felt brokers had a duty to educate their clients whether their claim was legitimate. He said: "Most brokers understand there will be changes to ranges and deals will be pulled with little notice, but clients do not."

David Cresswell, spokesman for the FOS, said some recent complaints it had received should have been resolved by the firm. "Consumers need to make sure they bring valid claims to us rather than taking grievances about unfortunate problems such as lenders pulling deals post-offer which are caused by market turbulence," he said.

Research released last week from GE Money showed 87% of mortgage deals being handled by brokers have suffered due to lenders changing product rates or criteria at short notice.

Bob Sturges, director of communications at Money Partners, felt the issue of lenders pulling deals post-offer and changing ranges was not a legitimate grievance given current problems. He said: "I can see they would be unhappy, but it is not something lenders choose to do and it is not their fault."