The Financial Services Authority (FSA) has found there were serious failings in the way Mandrake Associates handled complaints about mortgage endowment complaints between October 2002 and October 2006.

During that time, the company, which has its head office in Wisbech, received 2,127 complaints from clients alleging that Mandrake had mis-sold them endowment mortgages. But it rejected all of the cases it reviewed, never finding in favour of the consumer.

The FSA says the failings meant that there was an enhanced risk that endowment mis-selling complaints were either wrongly rejected or delayed. It also criticised the firm for failing to deal with complaints within a reasonable time.

William John Pirie, the firm's sole director, was banned from carrying out any customer functions in regulated financial services.

Director of enforcement at the FSA Margaret Cole said: "Mandrake Associates's endowment complaints handling failings were systemic, lasting for four years and meant consumers who had been mis-sold endowments were at risk of not receiving compensation at all, or only after delay."