Sub-prime scandal warning

Cartel Client Review in the press

Cartel managing director Carl Wright is warning the sub-prime market is in crisis and runs the risk of becoming the next big mis-selling scandal.

 

He says the recently announced Financial Service Authority investigation into the market will discover that a significant number of brokers are wrongly advising clients to take out sub-prime mortgages when 50% of them could take out a near prime mortgage.

 

Wright says: "A significant number of intermediaries are putting customers onto sub-prime mortgages when 50% of them could go on a near prime deal. When the FSA investigates sub-prime it is going to realise that this is not treating customers fairly and is going to want to know why advisers recommended this."

 

Wright says debts and arrears have increased over the past 10 years but people have reacted by borrowing more, not spending less. He says this is also contributing to a sub-prime crisis.

 

Wright warns that while some lenders have realised they have taken on business that could be placed elsewhere, others have still not put their houses in order and will fall under the FSA spotlight when the investigation is carried out.

 

Publication date : 17 October 2005

Publication name : Mortgage Strategy

 

Review

Tell us about your mortgage, secured loan and motor finance history

 

Complete a Client Review Form with our representative.

 

Underwriting

We assess each products chance of success

 

Each product you have submitted for review will be summarised by one of the following three underwriting outcomes:-

  • Yes - The review has identified a good chance of success for this particular product, on the basis that it would potentially result in a claim of £5000 or more (based on the information given).
  • No - No - We do not believe that making a claim would result in a claim of £5000 or more.
  • Possible - Documents are required from the lender before the case can be reasonably assessed. The chances of success cannot be reasonably assessed without the client documents.

Instruction

You tell us how many claims to pursue

 

There is no limit to the number of potential claims you can instruct us to proceed with. For each claim to be pursued you will be required to:

  • Read - Read and understand our terms and conditions
  • Sign - Sign our Client Agreement
  • Cheque - A £10 cheque payable to each lender for the release of documents will be required
  • Cost - At this stage Cartel Client Review charges £495 for each product you wish to pursue
  • Our Promise - Subject to Terms and Conditions, in the event of a claim being unsuccessful we will refund the £495 fee in full, regardless of the work we have completed (*There is no refund following a successful claim)

Investigation

We request the relevant documents and paperwork from the lenders

 

Our in-house team will contact the lender requesting release of all the relevant documentation under the terms of the Data Protection Act. Once released and in our possession, a full and comprehensive assessment of the Client documentation can be made.
At this point the Client documentation will either pass to the nominated panel solicitor and auditors or you will receive a refund of the £495 (please see 'Refund?' in FAQs).

 

Panel

We arrange for a panel auditor and solicitor to act on your behalf

 

We will arrange for a panel solicitor and auditor to prepare your case. You will not pay any fees to either solicitors or auditors as the costs incurred by the panel solicitors and auditors are claimed back from the lender on successful conclusion of the claim.
In the event of an unsuccessful claim you will have no costs to pay and you will receive a full refund of the £495, subject to our Terms and Conditions.

 

Payment

On conclusion of your successful claim you receive payment

 

Under normal circumstances you can expect your payment to be made up of both your actual financial losses, plus compensation for these losses. In most cases we would expect a payment to be made within 6 to 9 months of the claim being accepted by the solicitor.
There is no further fee for our most popular mortgage and secured loan claims. Please see our Customer Information sheet for full details of our fees.

 

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Review

Tell us about the credit cards you currently have

 

Complete a Client Review Form with our representative.

 

Underwriting

We assess each credit card’s chance of a successful claim

 

Each product submitted will be assessed as a ‘yes’ or ‘no’.

  • Yes - we believe there is a good chance of a claim. There is no minimum level of claim.
  • No - Cartel Client Review will not progress with any case assessed as a ‘no’.

Instruction

You tell us how many claims to pursue

For each claim to be pursued you will be required to:

  • Read - Read and understand our terms and conditions
  • Sign - Sign our Client Agreement
  • Cheque - A £10 cheque payable to each credit card company for the release of documents will be required
  • Existing clients - Are entitled to the discounted rate of £175 per review
  • New clients - Who are not progressing with a mortgage, secured loan or motor finance review will be charged a review fee of £495 for the first credit card review. Read full T&Cs
  • Our Promise - Subject to T&Cs, in the event of a claim being unsuccessful we will refund the £495 or £175 fee in full (*There is no refund following a successful claim)

Investigation

We request the relevant documents and paperwork from the lender

 

Our in-house team will contact the lender requesting release of all the relevant documentation under the terms of the Data Protection Act.

 

At this point the Client documentation will either pass to the nominated panel solicitor and auditors or you will recieve a refund of the £495 or £175 (please see ‘Refund?’ in FAQs).

 

Please note, as with all claims, there are no guarantees of success.

 

Legal Representation

We arrange for legal representation to pursue your claim

We arrange for legal representation to prepare and pursue your case. You will not pay any fees or costs to either solicitors or auditors to progress your claim.

We will attempt, where possible, to:

  • Claim back interest charges
  • Claim back repayments made
  • Cancel the card and clear any outstanding balance on the card

In the event of an unsuccessful claim you will have no costs to pay and you will recieve a full refund of the £495 or £175 fee, subject to our Terms and Conditions

 

Repayment

  • Interest?
  • Payments?
  • Outstanding Balance?

 

Payment is made to you, less successful claims fees.

Successful claim fees of 30% of the total of the above (see T&Cs) will be payable.

 

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