Misleading Mortgage Broker Quote- leading to hidden fees- Help Please

kenshaz

The purpose of the key facts illustration ,is a requirement to draw your attention to key facts to enable you to make a decision,if a mistake was made that led you in the wrong direction then you are entitled a correction.If not then why issue the key facts illustration the whole purpose and thrust becomes pointless ,give the broker the opportunity to correct the issue ,and request a letter of final resolution before you proceed to the next stage ,do not be discouraged.

homer_j_3

Under an execution only arrangement, the broker purely processes the application.

Clearly the broker has to ensure to the best of his/her ability that the quotes he/she provides is accurate, however, it is not the brokers responsibility to draw your attention on the details of any documentation as the broker has to be assume that the client knows the product inside out to be acting on an execution only.

The FSA, in my opinion, will view that the client acting in an execution only arrangement knew exactly what they were getting themselves into and should have been prudent to check everything.

Should the broker start trying to understand what you are doing and steering a client through "suggesting" certain points to be aware of then you could be breaching on an advised sale and then that becomes a whole different ballgame.

I do feel for the OP as I am sure if the broker had noticed the mistake they wouldnt have issued incorrectly - that said it should have been noticed by the OP so I hope it gets resolved and commonsense rules the day. a 50/50 split would be an ideal compromise.

kenshaz

Did the broker receive a procuration fee from the lender?

payless

I do think the brokere had a duty of care ..
he got paid,
he issued the document- which is required pre sale ( advice or not)
he confirmed document was correct

.. whether he is 100% responsible in this case is more of a question.

AndrewSmith

I agree with payless and do not dispute that the broker 'should' have ensured the documentation he issued was correct.

However, be prepared for the broker to contest your complaint based on the fact that the mortgage offer and attached KFI you received direct from the lender will have had the correct info on, and this is the legal document based on which you proceed with no advice or opinion offered from the broker due to it being a 'non advice' case.

It should be something that you will be able to resolve between yourself and the broker's complaints dept.

payless

Highlights one of the short -comings of using a non-advised broker... can't image the product ( mentioned was special offer) would not have been available via a "normal adviser"

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To be honest , if this had happened in my practice , I think I would have refunded ( so long as below commission earned) , to avoid it going further and to create goodwill .

that said I would have been taking it up with whoever I obtained my KFI from.