Based in Leicester Hadenglen were are mortgage broker of some size specialising in the council right to buy market.

This enabled council tenants to purchase their homes at a discount, and the market boomed in the early 2000’s with the property market booming.

This gave Hadenglen the opportunity to exploit these customers by offering to arrange their mortgage and take care of all the paperwork. They even visited the clients at their home.

In almost all cases the clients were told they had nothing to pay upfront and all fees could be added into the mortgage. They failed to tell these clients that interest would be charged on the fees which ranged from £1500 – £3000 over the reining term of the mortgage. Not content with this they then insisted that the clients take out payment protection insurance and also added the premium to the mortgage.

In 2006 the financial services authority discovered major failings in the systems and controls of hadenglen which lead to mis sold ppi.

Margret Cole, Director of enforcement at the FSA said, “Firms must develop and maintain systems and controls that minimise the risk of providing unsuitable advice to customers. The penalty imposed on Mr Hayes should leave senior management within firms in no doubt that the FSA will hold them to account if they fail to treat their customers fairly.

“PPI has been a priority for the FSA since general insurance regulation began and it continues to be a priority for us. This is the first time we have taken action against a chief executive for PPI selling failures. The significant fines imposed on both Hadenglen and Mr Hayes reflect the seriousness of their actions.”

Mis sold pip cost Hadenglen £133,000 and their chief executive Mr Richard Hayes £49,000

If you have been a customer of Hadenglen and wish to reclaim ppi or investigate a mis sold right to buy, then contact us today