Carrington Carr Broker Fee and income protection Miss Sold - Reclaim Help

Chicorycoffee

Hi everyone - didnt realise how rapid this forum was, I posted a couple of nights ago and had many responses - many thanks to all for taking the time and effort !

I wanted to add a little to the discussion :

1) Although I initially bought the original accident, sickness an unemployment cover as a block added to the mortgage rather than as monthly payments, the demands and needs (D&N) highlights only the cost in terms of increased interest after L&G got involved and reviewed the demands and needs. The original doc from AWD talks more about (quote) "...results in lower total monthly outgoings when compared to paying a monthly premium separate to the mortgage" The original D&N was from 2005, the L&G review from 2009. The L&G letter 4 years later asks that extra details are added to the D&N, the first one being the amount of extra interest incurred by adding the premium to the mortgage. I didnt respond to them - does this mean I have no come back ? are they allowed to retrospectively alter the D&N ?

2) I think D&N did not exist when I first bought accident, sickness an unemployment in 2002 and I only remember D&N when I moved and upped my cover. Before then its anyone's guess as to why I loaded it into the mortgage

3) The solicitors used by AWD - Martin Kaye - personally I thought they were absolutely wonderful, especially when we moved house - I remember complimenting them at the time - they made the paperwork a dream !!

4) I'm sure there are many back handers / commissions that I wasnt aware of, but I go into my next re-mortgage better informed than previously !

5) Carrington Carr contacted me yesterday as a follow up to my call to them about why they hadn't been contacted me so close to coming off a fixed rate (answer - they were going into administration !). I'm in 2 minds whether or not to look at someone local or use these guys again (I did pay that fee xx years ago....) - is it wrong to ask both to participate and I go with my best deal ?

Thanks again for comments and insights !

ado

Chicorycoffee wrote: »

Hi everyone - didnt realise how rapid this forum was, I posted a couple of nights ago and had many responses - many thanks to all for taking the time and effort !


5) Carrington Carr contacted me yesterday as a follow up to my call to them about why they hadn't been contacted me so close to coming off a fixed rate (answer - they were going into administration !). I'm in 2 minds whether or not to look at someone local or use these guys again (I did pay that fee xx years ago....) - is it wrong to ask both to participate and I go with my best deal ?

Thanks again for comments and insights !

Try to find a fee free local whole of market broker. Its galling to have paid a fee to AWD or CC but bear in mind that they only have a limited panel, you are restricted as to which solicitor is used and you can only use their valuers (and they'll be a charge for this). A whole of market broker might recommend a solicitor but you will be free to use who you want whilst the broker might also be able to find a fee free deal with a free valuation. I'm also pretty sure that the CC salesman would also want an instant decision where as a more user friendly broker will take the time to discuss things more widely and to leave the info with you. Finally don't rule out staying with your current mortgage or talking direct to other banks.

Chicorycoffee

Thanks for the feedback Ado - I'm moving from fixed 5.64 to variable 5.99 with Bank of Ireland - so definitely looking to move!

Starvinmartin

Having read these posts, I'm starting to feel a bit of a mug.

We were contacted by CC after filling in an online mortgage quote in Oct 2010, and were persuaded to use them to take out a mortgage with us. I have no issues with the mortgage deal but thought that a Broker Fee was normal, particularly since I've previously sorted out my own mortgages. However, this time,being in the Forces meant I was spending quite a bit of time away from home and wanted the peace of mind of someone sorting things out for me.

Anyway, I was persuaded to add on £3541 to my mortgage for "To provision of services in order to facilitate secured credit or loan facilities with a relevant lender, in connection with above property..." I was told this was for a continuing service until my mortgage was eventually repaid - ie 20 years.

In addition to this, CC was paid £763 by the lender for arranging the mortgage, I've just found this in one of the sections of the original mortgage offer.

So I guess I have a couple of questions:

1. Was the broker's fee missold?
2. If not, what happens now that CC is in administration? By my reckoning, I've paid for a 20 year service of which I've only received 16 months.

Furthermore, after the mortgage completed, I've had no contact with CC until a few days before they went into administration when my wife was called by them to ask if we still wanted them to act for us. Not knowing of impending administration, of course we said yes - that's what we had paid them for. I also received a letter a few days later letting me know that they were firmly committed to helping us - 6 days before they went belly up!

Anyone out there have any genuine advice?

bishoprick

I telephone carrington carr today 29th march and gave them my details regarding remortgage and was told that they could not give any advice due to the going into administration but would pass my details over to the administrators dealing with carrington carr of which they telephone back stating that they are now dealing with my case and a new personal advisor will be in touch shortly and that the fee i paid a few years ago would still stand.
But later this evening a young lady from platinum finance part of carrington carr phoned to say that they were still dealing with my remortgage and my original advisor would be in touch soon.
Now what do i do help what a mess any suggestion

Starvinmartin

Starvinmartin wrote: »

Having read these posts, I'm starting to feel a bit of a mug.

We were contacted by CC after filling in an online mortgage quote in Oct 2010, and were persuaded to use them to take out a mortgage with us. I have no issues with the mortgage deal but thought that a Broker Fee was normal, particularly since I've previously sorted out my own mortgages. However, this time,being in the Forces meant I was spending quite a bit of time away from home and wanted the peace of mind of someone sorting things out for me.

Anyway, I was persuaded to add on £3541 to my mortgage for "To provision of services in order to facilitate secured credit or loan facilities with a relevant lender, in connection with above property..." I was told this was for a continuing service until my mortgage was eventually repaid - ie 20 years.

In addition to this, CC was paid £763 by the lender for arranging the mortgage, I've just found this in one of the sections of the original mortgage offer.

So I guess I have a couple of questions:

1. Was the broker's fee missold?
2. If not, what happens now that CC is in administration? By my reckoning, I've paid for a 20 year service of which I've only received 16 months.

Furthermore, after the mortgage completed, I've had no contact with CC until a few days before they went into administration when my wife was called by them to ask if we still wanted them to act for us. Not knowing of impending administration, of course we said yes - that's what we had paid them for. I also received a letter a few days later letting me know that they were firmly committed to helping us - 6 days before they went belly up!

Anyone out there have any genuine advice?

Update - phoned L&G this morning - they will be honouring the lifetime service agreement and will be appointing an advisor in the next week or so, so somewhat happier.

magpiecottage

Starvinmartin wrote: »

1. Was the broker's fee missold?

No - the broker is entitled to charge a fee it has specified for arranging the mortgage AND to take a commission provided it is fully disclosed. I do not believe the "Hurstanger" case will help you recover this.

2. If not, what happens now that CC is in administration? By my reckoning, I've paid for a 20 year service of which I've only received 16 months.

Clearly you have paid for a service which you will never receive when it acted as an Appointed Representative of Legal & General. I therefore recommend you complain to Legal & General about this issue.

magpiecottage

bishoprick wrote: »

I telephone carrington carr today 29th march and gave them my details regarding remortgage and was told that they could not give any advice due to the going into administration but would pass my details over to the administrators dealing with carrington carr of which they telephone back stating that they are now dealing with my case and a new personal advisor will be in touch shortly and that the fee i paid a few years ago would still stand.
But later this evening a young lady from platinum finance part of carrington carr phoned to say that they were still dealing with my remortgage and my original advisor would be in touch soon.
Now what do i do help what a mess any suggestion

I suggest you seek the assistance of a new whole of market adviser (since you cannot afford to hang around when purchasing a property) and make a complaint to Legal & General to get back the fee you paid. You should also seek interest on it (in line with the interest charged by you mortgage lender since you would not have needed to borrow so much if the missale had not occurred) PLUS any early repayment penalty your current lender charges on the additional borrowing.

anisaad

Starvinmartin wrote: »

Update - phoned L&G this morning - they will be honouring the lifetime service agreement and will be appointing an advisor in the next week or so, so somewhat happier.

If L & G say thst they will honour the lifetime agreement is there still a case. can the fee paid for Life time service be reclaimed as it is not with the company it was signed up with CC or AWD?

dunstonh

f L & G say thst they will honour the lifetime agreement is there still a case. can the fee paid for Life time service be reclaimed as it is not with the company it was signed up with CC or AWD?

It is no skin of L&G's back as they offer fees free mortgage advice anyway. So, they are doing nothing that they would not already do with their sales reps. However, they only consider commission paying deals as they are not independent and that is where they will be paid.

The AWD lifetime agreement was a flawed model and a complete waste of money for a consumer. You were paying for something that most whole of market brokers did as normal with no explicit charge.