Arrangement/Brolers fees?????

woodymeg

Please can any one advise - I was reading posts for welcome finance and a person mentioned about the arrangement fee been added to the loan and then been charged interest on this, he thought it was wrong as it is not a product that he was buying. Any way have checked on 5 loans from citifinancial, 2 loans from Freedom, and 1 from welcome and all have added the arrangement fees or brokers fees to our loans and to be charged at same rate as loans. Except for welcome the rest do not say why this is surely it is a way of getting alot more money for themselves, on welcomes contract on the back it says that the acceptance fee will be charged interst as they will review our income and expenses, including any current indebtedness and other outgoings, this will be charged to us to cover this councilling. They have never been in touch with us regarding any changes to our finances either. We was never asked again or told about any of these charges been added and further more not asked if we want to pay this amount ourselves, which wiould have been more cost efficient to us not them tho. dont know if ive posted on right site but just wondered if anyone knows anything about this. The person i was refering to said that the office of fair trading are interested in this as it isnt again a product... Pls help.....

di3004

woodymeg wrote: »

Please can any one advise - I was reading posts for welcome finance and a person mentioned about the arrangement fee been added to the loan and then been charged interest on this, he thought it was wrong as it is not a product that he was buying. Any way have checked on 5 loans from citifinancial, 2 loans from Freedom, and 1 from welcome and all have added the arrangement fees or brokers fees to our loans and to be charged at same rate as loans. Except for welcome the rest do not say why this is surely it is a way of getting alot more money for themselves, on welcomes contract on the back it says that the acceptance fee will be charged interst as they will review our income and expenses, including any current indebtedness and other outgoings, this will be charged to us to cover this councilling. They have never been in touch with us regarding any changes to our finances either. We was never asked again or told about any of these charges been added and further more not asked if we want to pay this amount ourselves, which wiould have been more cost efficient to us not them tho. dont know if ive posted on right site but just wondered if anyone knows anything about this. The person i was refering to said that the office of fair trading are interested in this as it isnt again a product... Pls help.....

Hi there

Not sure on things like this to be honest, but someone may be along soon to help you on this and give some advice.

Good luck.;)

dunstonh

Arrangement fees are legal and fair and can be added to the loan if you dont want to pay for them up front.

They are disclosed in advance and the agreement would include them.

marshallka

dunstonh wrote: »

Arrangement fees are legal and fair and can be added to the loan if you dont want to pay for them up front.

They are disclosed in advance and the agreement would include them.

Legal, yes, fair - debateable lol.

I asked for this to be reduced for my mortgage on taking out another offer but they would not budge. I suppose they are paid for you to be able to have trackers, discounted etc but some can be extortionate. I have always had them added to the mortgage but I suppose you are then paying all the interest on them for next twenty years so can work out very expensive. I think I would rather save up and pay up from next time.;)

dunstonh

Legal, yes, fair - debateable lol.

Fair as in you know what they are in advance before you buy.

In the case of mortgages, you can often find deals with low arrangement fees but higher rates. Smaller mortgages are better off on those but larger mortgages are better off on higher fees, lower rates.

If you didnt know about the fee in advance and it wasnt disclosed anywhere then that is a different matter.

woodymeg

dunstonh wrote: »

Fair as in you know what they are in advance before you buy.

In the case of mortgages, you can often find deals with low arrangement fees but higher rates. Smaller mortgages are better off on those but larger mortgages are better off on higher fees, lower rates.

If you didnt know about the fee in advance and it wasnt disclosed anywhere then that is a different matter.

hi yes i knew there would be a fee to pay but was never explained to that it would be put on loan and was not given chance to pay up front for it thats what im annoyed about, because if we had of been given chose we would have paid for it instead of acruing alot of interest on it.

finatra26

One of my pet hates was the £65 courier fee so that they could deliver the cheque & then you had to get to your branch to pay it in anyway - when I asked if I could just pick it up from the branch I was told no as it had to come from head office & they couldn't guarantee how long it would take that way