The Legal Complaints Service (LCS) has closed a loophole that prevents consumers complaining about a solicitor's handling of their re-mortgaging transaction by arranging to redirect all such complaints to the Financial Ombudsman Service (FOS).


Lenders commonly offer the services of their own solicitors free of charge to customers who are re-mortgaging with them. Legally, the lender is the client, meaning that if things go wrong, consumers cannot complain to the LCS.



The FOS, however, can look into complaints against mortgage lenders, including work done for them by solicitors acting as agent.



Alison Robinson, a policy adviser at the LCS, said the number of complaints arising from re-mortgages has been increasing as, with house prices rising, more people sought to release the growing equity in their properties. She said: 'We have asked solicitors and mortgage lenders to explain to consumers exactly who owes what responsibility to whom. We've also worked closely with the Council of Mortgage Lenders and the FOS to devise a solution. Essentially, when a complaint arrives at the LCS, it's now simply re-designated to the FOS and sent on there.'



LCS chief executive Deborah Evans said: 'We were concerned that we could not help a number of consumers with legitimate complaints, and approached the FOS to see if, between us, we could bridge the gap.'



Jonathan Rayner