Claw Back Commission

Badger72

Hi, looking for advice on this one. I cancelled my critical illness insurance pretty soon after taking it out. Found it too expensive. I did this within a few days (less than a week). This was all in August. I received a letter on Saturday from the broker asking me for £1900 claw back commission as I had agreed not to cancel the policy witin 4 years. I didn't agree verbally to anything as I wasn't told this. He has however sent me a copy of the agreement and it does state this. It's not signed though. Is there anyway I can escape this? What should I do next? They want the money within 7 days - its the middle of my pay month and week or so away from xmas and I have three kids!!

Thanks

Quentin

Tell the broker what you have told us regarding not entering into any agreement with him.

Followed by a polite "get lost" - it's up to him to prove the debt!

Badger72

Quentin wrote: »

Tell the broker what you have told us regarding not entering into any agreement with him.

Followed by a polite "get lost" - it's up to him to prove the debt!

What do you mean by proving the debt? Pearl will have sent him a letter asking him back for the debt. Wouldn't that be the debt?

lisyloo

No that's his debt with Perl, not your debt with him.
He has to prove that YOU owe HIM money and he doesn't have a signed contract.

Quentin

Badger72 wrote: »

What do you mean by proving the debt? Pearl will have sent him a letter asking him back for the debt. Wouldn't that be the debt?

That is his "debt" that Pearl are clawing back from him. Nothing to do with you.

You say you didn't enter into any agreement with your broker, so unless he can prove otherwise (ie that you did enter an agreement with him) then you can tell him to get lost asking you for the £1900.

Badger72

I didn't agree verbally to this agreement but he has sent me a document with the agreement on it. I can't see a signature though.

Badger72

If worst comes to the worst and i do end up paying. AM I entitled to claim some of the commission for myself? Sure this used to be possible

Quentin

It's not an "agreement" if you didn't agree it!

ACG

If you didnt sign it, thn i wouldnt worry.

If you did then he probably supplied his services for free on the basis he gets commision from the provider. So as far as he is concerned he spent an hour or 2 sat with you, he or his paraplanner spent time sourcing the product so im sure they deserve some type of payment. Maybe if you cant afford a smaller contract they would be happy to cancel the debt proceedings.

dunstonh

Agreeing to pay a fee by using commission is quite common and when done fairly is quite a sensible way to do it. However, to do that you have to be issued a fee agreement and the fee should not match the commission but match the terms of their free agreement. i.e. 5 hours work at £100 is £500 or a fixed fee of £600. Along those lines.

It sounds like this one is doing it the dodgy way by trying to get you to pay their commission rather than their fee. With nothing signed, he hasnt got a leg to stand on and if he tries to pursue you for it then put in a formal complaint. If that goes to the FOS, he will be charged £500 as well as have the hassle of a complaint (which is no fun).

If worst comes to the worst and i do end up paying. AM I entitled to claim some of the commission for myself? Sure this used to be possible

No. Those days are gone. You need an FSA authorisation number to be paid commission now. However, it doesnt apply anyway.

Badger72

How does this read? Not even sure its fact but have copied from various forums incl this one.

With regards to your letter dated 9th December 2009 for the claw back of commission you seek from me.

I am in the process of seeking legal advice regarding this situation for a couple of reasons.

1.[FONT=&quot] [/FONT] I believe that there was insufficient disclosure on charges. I was not issued a fee agreement.

2.[FONT=&quot] [/FONT]I believe that this is a clear breach of FSA guidelines as you are asking me to pay the commission which equals a fee. The FSA state that fees cannot match commission.

As a result of the above, I will be speaking to the Financial Ombudsman Service and registering a complaint against xxxxx Financial Services.
[FONT=&quot]In the meantime, would it be possible to be sent a signed copy of this agreement detailing the fees. [/FONT]