Commission Clawback

Hj13 · 9 August 2017 at 2:12PM

Hi, I'm hoping someone can help!!
I took out life assurance with Legal and General via an agent 'compare warehouse' over the phone. This was almost a year ago.
Following a remortgage and need to change cover I found a much better deal elsewhere so called legal and general and cancelled the policy. I have today received a invoice from compare warehouse for £474 for lost commission over a 4-year period. This has come as a complete shock!!
I have checked my emails from them and cannot see any information to this effect. Could it have been done verbally? Does that stick?
Are they just trying to use scare tactics and do I ignore them or should I get in touch?
Thanks in advance

csgohan4 · 9 August 2017 at 2:22PM

what were the terms and conditions when you signed up? website T+c e.t.c?

Seems like a pretty bad company, At least Lifesearch who i used previously would waive the £200 pound fee if they tried to find a better deal for you.

Hj13 · 10 August 2017 at 8:03AM

I've checked the website and no T's and C's on there. Nothing on email. I can only assume it was stated to me on the phone.
I'm going to ignore them and see how I go!!
Thanks for your response.

csgohan4 · 10 August 2017 at 8:16AM

Hj13 wrote: »

I've checked the website and no T's and C's on there. Nothing on email. I can only assume it was stated to me on the phone.
I'm going to ignore them and see how I go!!
Thanks for your response.

if you ignore they might take you to court, speak to them to clarify and ask why the lack of paperwork?

you do not want a CCJ for something silly

dunstonh · 10 August 2017 at 10:39AM

Could it have been done verbally? Does that stick?

No. It has to be in the contract terms. Verbally is not enough. It should be included in a mandatory document.

Are they just trying to use scare tactics and do I ignore them or should I get in touch?

Using commission for a fee offset is a perfectly valid and acceptable method. We have used it a number of times and on one occasion taken someone to court and won.

However, there are some firms that try-it-on. So, the key is in the documentation. In all our cases, and how you would expect it to be when correct, is a fee agreement signed by the client stating how much was due and that if there is a clawback, the person is liable for the difference.

No agreement means they can huff and puff but they wont get anywhere. So, ask them for a copy of the agreement signed by you agreeing to such terms.

I'm going to ignore them and see how I go!!

Thats not a good idea. You can end up with a CCJ and destroyed credit.

Hj13 · 23 August 2017 at 11:55PM

Thank you so much for responding- most helpful!
So the current situation is that I have spoken to them at length on the phone and explained that I have never seen their t's and c's. They say they sent them by email in June last year and sent me a copy of the email from the original date which I did receive. They say I don't have to sign them or even acknowledge receipt of them to be bound by them. The email didn't bounce back so in their eyes I received it. They say it was also in the recorded message at the end of their original call.
They seem to have me over a barrel!
They have offered me a policy for critical illness cover (which I don't particularly want or need) at a higher cost than I can get elsewhere which I have to have for 4 years and is the only way they will write off the £470 debt.
I don't know what to do now. They say their conditions are FCA approved and being very menacing threatening debt collectors. Do I fight or am I bound to them by taking out the policy with L and G (who are the only company who's docs I have signed).
Really appreciate any help on this!!

dunstonh · 24 August 2017 at 10:42AM

They say their conditions are FCA approved

The FCA does not approve any conditions with any firm.

They say I don't have to sign them or even acknowledge receipt of them to be bound by them.

Wet signatures are not required. We use adobe sign for electronic signatures. I don't believe you can get away with just emailing it and not getting any acknowledgement that it has been read and agreed. However, you would need a solicitor on that one.

I would suggest you now make a formal complaint to the firm. During the complaint process, they are not allowed to take any action against you. So, that gives you some breathing time. Plus, if they reject the complaint, you can then refer it to the FOS. I would recommend in your complaint that you state that if you get an unsatisfactory response, you will take the complaint to the FOS. This is because it will cost the firm £500 if you go to the FOS. They are after you for £470. If they have any sense, they would drop it to avoid paying £500 to get £470.

Use of the FOS costs you nothing but you have to make a formal complaint to the firm first, and for them to reject you (you then get a letter telling you that you can refer your complaint to the FOS if you wish).

Commission Clawback

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