Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of creating an independent tribunal service to oversee mortgage (a) lending practices and (b) customer complaints.

The Financial Conduct Authority (FCA) supervises the conduct of mortgage lenders and intermediaries through regulations. The FCA’s day-to-day operations are independent from Government control and influence. The FCA will take action against lenders and intermediaries that are found to be in breach of the FCA rules. This can include warning a firm and requiring it to take action to ensure future breaches do not occur, imposing a fine on firms and requiring them to arrange for customers who have lost out to be compensated, and ultimately preventing a lender from undertaking any further mortgage lending activity.

The Government is determined that borrowers are treated fairly by their lenders. Any dispute arising between a lender and its customers is usually best resolved by the parties involved. If a consumer is not happy with their lender’s response, they will be eligible to apply to have a further review conducted by the Financial Ombudsman Service (FOS). The FOS provides a free, independent dispute resolution service for customers. Its decisions are binding on the firm concerned.

The FOS can be contacted by post at: Financial Ombudsman Service, Exchange Tower, London, E14 9SR, by telephone on 0800 023 4567, or through their website at www.financial-ombudsman.org.uk.