Not only are bosses at Thornton Holbrough aiming to ease the pinch of the current credit crunch, they are also looking to create at least 100 jobs.

This is the first initiative of its kind to be launched in Scarborough and aims to help people claim back compensation for their current and previous mortgages and credit cards.

Brett Thornton, managing director of Thornton Holbrough, said: "With the recent credit crunch, along with the increased cost of living, more and more people are looking to consolidate debts but are struggling due to a decrease in money available, more reserved lending, and higher interest rates.

"Instead of reducing monthly payment and paying back more in the long run we are looking to wipe off people's debt altogether."

The scheme works by looking for flaws in financial contracts, including mortgages and credit cards, which makes them legally unenforceable. Once a flaw is identified a claim can be put together, seeking compensation in the form of a cash payment or by clearing the debt.

To get the scheme going Thornton Holbrough have teamed up with Manchester-based Cartel Client Review Ltd, a regulated firm providing claims management services.

Roger Thouirenel, of Cartel Client Review, said: "All contracts made before April 2007, or mortgages taken out before 2005, have the potential of being flawed, and therefore could result in compensation. It is definitely worth finding out if you can claim back the money that is rightfully yours."

The new service covers a number of financial contracts as well as mortgages and credit cards including secured and unsecured loans, and car finance.

For example, if a credit card is found to be flawed or unenforceable the scheme will look to either cancel the card and clear any outstanding balance, claim back any previous charges paid, claim interest previously paid, or claim for repayments previously paid.

Thornton Holbrough are looking for a minimum of 100 salespeople across the local area on either a full time or part time basis to get the project up and running to its full potential.

Mr Thornton said the scheme, which is already in operation, is an "exciting initiative aimed a helping people resolve their financial problems efficiently".