In February Mortgage Introducer highlighted brokers were demanding to know the extent of packagers’ responsibility for sourcing products after a broker was refused compensation for a client by packager CMC, part of the Countrywide group, after it sourced the wrong product for the client.
The client needed a non-conforming deal and the packager recommended a GMAC-RFC two-year discount product.
It was not until the client had received the offer that the broker, John Stewart, of PMI Independent Financial Advisers, realised the deal was in fact a prime product.
As a result the client had to settle for a product at the same rate but with only a one-year discount, paying £657 extra over the year and fixed for three years.
On seeking compensation for the one-year discount lost, Stewart said CMC took no responsibility for the fault and said it was up to him to check the deal was right.
CMC has now paid the client just over £600 in compensation but has refused to pay the £150 Stewart billed them for lost time and earnings.
In a letter sent to Stewart last week CMC said: “We are not prepared to pay the additional invoice of £150 as we still maintain that you had some responsibility to your client to check the illustration provided corresponded with the details previously given to you by CMC. We believe this to be a fair resolution and now consider the matter closed.”
Stewart said: “I am pleased it has acknowledged the client has been disadvantaged but I am displeased that it has not taken responsibility for the fault and has laid it on me.” CMC was unavailable for comment.
