FSA Looks into Wright’s Claims

Cartel Client Review in the press

The FSA is investigating allegations of sub-prime mortgage mis-selling, following a complaint from an IFA.

 

Carl Wright, the managing director of Manchester-based IFA Cartel, said that representatives of the FSA brought the subject up when they visited his office. Mr Wright said: "All I can say to you is that I did not get any adverse comments or criticism."

 

A board member of the Association of Mortgage Intermediaries and industry commentator, Mr Wright stood by his controversial statements, only conceding that sub-prime lenders and IFAs could disagree about the 50 per cent figure, but not the principle. He said that anyone criticising his comments on the basis that he worked in the prime sector was only doing so because they did not know him.

 

Mr Wright said: "Cartel’s main business is prime, but that has not stopped me negotiating with sub-prime lenders for the past eight years." He added that the original source of his information was the sub-prime sector and that the 50 per cent figure came from two directors of sub-prime lenders.

 

Mr Wright said: “They are quite right and it is quite proper for them to disagree with the percentage, but which lender has ever rejected business saying it should be put in a near prime product, with a prime lender? They are all shouting for nothing. They know for certain that the FSA is going to go in and look at these cases."

 

A spokesman for the FSA said that an investigation into the sub-prime sector in September was the most up-to-date information available.

 

The report’s introduction said: "Overall, there were too many cases where firms were unable to show that they had followed the required procedures relating to suitability when advising on these mortgage contracts."

 

Publication date: 17 November 2005

Publication name: Financial Advisor

 

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