Mortgage Financial Advisor Commission

Researchit

In June 2007, I took a mortgage with GE MONEY arranged by an independent finanacial advisor, who charged an arrangement fee of £250.00 and on the basis that he would receive a commission, during and throughout the arranged fixed term of 3 years, from GE Money. The fixed term was terminated June 2010 and the mortgage reverted to a standard variable rate. Can you tell me whether I have claim against GE Money regarding the commission paid. I am grateful for any advices in relation to this.

opinions4u

Why do you think you have a claim of any sort?

Somebody did a job for you and earned their income from that through a mixture of fee and commission.

Would you expect to work for nothing?

dunstonh

independent finanacial advisor, who charged an arrangement fee of £250.00 and on the basis that he would receive a commission, during and throughout the arranged fixed term of 3 years, from GE Money.

Mortgages pay no trail/renewal commission.

Can you tell me whether I have claim against GE Money regarding the commission paid.

Absolutely not. Do I have any claim against your household wages for posting such a ridiculous request? Why don't you pop to the supermarket and ask them if you can have last weeks shopping bill back?

kingstreet

By choosing to draw down the funds, you accepted the deal the intermediary had done for you and entitled him to the payments you agreed.

What justification do you have for suggesting that money should not have been paid? Money paid to an intermediary by GE is between them and would not impact on you, or your mortgage deal.

dwsjarcmcd

Gets my vote for the silliest 'can I reclaim this fee' post of the week!

DVardysShadow

Researchit wrote: »

In June 2007, I took a mortgage with GE MONEY arranged by an independent finanacial advisor, who charged an arrangement fee of £250.00 and on the basis that he would receive a commission, during and throughout the arranged fixed term of 3 years, from GE Money. The fixed term was terminated June 2010 and the mortgage reverted to a standard variable rate. Can you tell me whether I have claim against GE Money regarding the commission paid. I am grateful for any advices in relation to this.

No. But you should take your brain back for a refund.

[My advice is not FSA regulated. I have greater freedom over the range of options I may advise than FSA regulated advisers]

magpiecottage

You only have a claim if you can demonstrate that the broker received a SECRET commission.

The amount of the commission need not be disclosed although by 2007 all lenders would disclose what they paid to introducers in respect of a first mortgage because the FSA required them to in a "Key Facts" document.

If you did not bother to read it, then that is your problem. For your complaint to succeed, you would need to demonstrate that you could not read it AND that GE Money ought to have realised you could not read it.

I think GE Money would have a defence along the lines of "If we had been told the borrower was illiterate we would have gone out of our way to explain but we were not told".

They would probably refrain from saying "If we had been told this borrower was as stupid as they now seem to be we would never have made the loan at all" but that doesn't mean they won't be thinking it.