Not upheld: Account administration errors complaint against Mortgage Agency Services Number Two Limited
Financial Ombudsman decision DRN-5188668 of 2024-12-04T00:00:00+00:00. Account administration errors complaint against Mortgage Agency Services Number Two Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-5188668 |
|---|---|
| Decision date | 2024-12-04T00:00:00+00:00 |
| Firm | Mortgage Agency Services Number Two Limited |
| Product | Mortgage |
| Claim type | Account administration errors |
| Outcome | Not upheld |
| Remedy | MAS2's existing offer: recalculate interest on the further advance with reduced rates as specified, calculate the difference between amounts paid and what would have been paid, add 8% simple interest per annum from date of overpayment to settlement, and refund via mortgage balance reduction or direct refund |
Summary
Mr J complained that MAS2 overcharged him interest on buy-to-let mortgages, specifically on further advances held on SVR. MAS2 acknowledged in April 2024 that it had not administered the SVR fairly since 2011 and offered to refund overcharged interest with tiered rate reductions and 8% simple interest. The ombudsman found this offer fair and reasonable, noting that Mr J should have reasonably discovered the problem by 2013 but did not complain until 2024, justifying limitation of redress to the six-year pre-complaint period. The complaint was not upheld as MAS2's existing offer adequately addressed the overcharging.
The Ombudsman's reasoning
The ombudsman found that MAS2's offer to refund overcharged interest with a tiered reduction in SVR (1.25% from November 2017 to August 2022, 0.75% to October 2022, and 0.25% to November 2022) plus 8% simple interest per annum is fair and reasonable. The ombudsman noted that Mr J should have reasonably known of the problem since 2013 but did not complain until 2024, and therefore it is fair to limit redress to the six-year period before complaint. The ombudsman determined that even if an unfair relationship existed, MAS2's offer adequately addresses the financial losses.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Mortgage Agency Services Number Two Limited, all decisions | 5 | 40% |
| Account administration errors, all decisions | 25,844 | 25% |
| Mortgage, all decisions | 25,098 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website