Hi,
Maybe someone could assist with this query.
In 2006 I remortgaged my property with AIB to invest in property in Bulgaria which was never delivered. The estate agent that I used was based in Spain and went out of business in 2009.
My question is can I claim compensation from AIB for lack of Duty of Care in lending the money in the first place?
In 2013, there was a landmark judgment in the UK Court of Appeal (Emptage v Financial Services Compensation Scheme). The claimant had raised a mortgage on their UK residence to purchase a Spanish property which was never delivered. They were advised by a Financial Adviser who was, as required by law, regulated by the Financial Services Authority (since replaced by the Financial Conduct Authority). The Appeal Court ruled that the Financial Adviser had a duty of care in terms of risk and affordability and had failed in this duty. As the adviser had since gone out of business, the claimant had a valid claim against the Financial Services Compensation Scheme (FSCS) which exists to pay compensation where a regulated party no longer exists. If the adviser had still been in business, there would have been a claim against them.
The rules which apply to a Financial Adviser also apply to any regulated entity, which includes:
·Banks and Building Societies
·Investment Firms
·Credit Unions
·Mortgage and other Home Finance Providers and Brokers
·Insurers and Insurance Brokers
·Stockbrokers, Asset Managers and Financial Advisers
·Firms providing Personal Loans