Claw Back Commission

Badger72

Got my reply from the company asking a clawback fee. They say that there is no signed agreement as they don't have such agreement. I don't get that one. The letter states that they have appointed the firm's external compliance consultants. WHo may these be and does this mean there is nothing more I can do?

They are also dropping the fee asked to 1200 pounds or 200 per month for 7 and half months.

SHould I pay them or take this to court?

Quentin

I'd do nothing at all and await developments.

They don't seem to have a cast iron case against you (or they would already be taking you to court), so wait and see if anything further develops and take it from there. (Their sudden £700 reduction is a clue they don't really have a case!)

dacouch

External Compliance Consultants will cost them a fortune.

As you have made a complaint against them they have to ensure they handle the complaint correctly and supply details of any complaints each year to the FSA.

The advice you have been given earlier in this thread is good advice.

It's comical they are trying to enforce an agreement that you have not signed or agreed to, of they have Terms and Conditions that include such an onnerous requirement as you reimbersing their loss of commission it is obvious to anyone with any sense it would be best practice to get the consumer to sign in acknowledgement that they have agreed to them. Me thinks they may well start doing this in the future...

dunstonh

They say that there is no signed agreement as they don't have such agreement.

In which case how can they ask you for the money?

The letter states that they have appointed the firm's external compliance consultants. WHo may these be and does this mean there is nothing more I can do?

They dont do their complaints in house and have sent it to the company they use for compliance purposes.

SHould I pay them or take this to court?

You do nothing. You cant take them to court as you are not getting money out of them. They can choose to take you to small claims court where they will be expected to produce the agreement as evidence you owe them money. They have already confirmed that doesnt exist.

They are just huffing and puffing and trying to force you to pay. Yet they have no grounds for you to pay based on what you have said.

Badger72

dunstonh wrote: »

You do nothing. You cant take them to court as you are not getting money out of them. They can choose to take you to small claims court where they will be expected to produce the agreement as evidence you owe them money. They have already confirmed that doesnt exist.

They are just huffing and puffing and trying to force you to pay. Yet they have no grounds for you to pay based on what you have said.

But wouldn't their external compliance consultants tell them to drop it as they are in the wrong? My worry is that these people have checked it all out and advised the firm that they are in the right,.

Quentin

You are worrying unnecessarily at this stage.

Mentioning "compliance consultants" was designed to worry you, and could be bluff or a tactic.

dunstonh

But wouldn't their external compliance consultants tell them to drop it as they are in the wrong?

You would hope they are told to drop it but with it not being a regulatory complaint (i.e. not a complaint about advice) then the compliance team may not have the remit to tell the company what they should or shouldn't do re their billing processes.

As Quentin says, you are not to worry at this stage. They are trying to scare you into paying.

I use an external compliance company and their guide is quite clear. If you dont have an agreement then you have virtually no chance of being able to get a fee enforced in the event on non payment.

Badger72

One last thing - and thanks for all your advice thus far - should I know make a complaint to the FOS or should I wait to hear back from the financial advisers ( end of Feb), where I assume they will threaten me with either bailiffs or court action.

Quentin

Just wait and see what happens (there's other options - eg. you might just never hear from them again!)

Badger72

Ok, so today I received a letter demanding that I pay the total within 7 days or they take me to small claims court. Hmmm. I am thinking of taking this all the way. Good idea.?