Connells broker fee - wont refund even though i have it in writing

stator

I wouldn't use Connells even if they paid me to.

dunstonh

Poosbert wrote: »

I was quoted and charged £349 2 years ago by Connells and this was sold as a Lifetime fee and was told I would not have to pay any more when I came to use them again for mortgage advice. They now have "introduced" a new admin fee of £99 - surely this is misleading and very sneaky?
Comments?

Make a formal complaint and if you dont like their response, refer it to the FOS

Chase23

I am currently in exactly the same situation and in dispute with them over this £99 admin charge now that I have gone back to them to take advantage of the "Lifetime Broker Fee". When I paid my "Lifetime Broker Fee" last year it was £399 and in the letter I got back from them it said:
“I confirm receipt of the Lifetime Broker Fee of £399. This fee covers the cost of providing you with mortgage advice for this and any future mortgage applications. In addition this fee also covers assistance in completion of all the mortgage and protection applications and all work associated with the mortgage advice offered by CONNELLS.”
How can they write that and then have the gall to ask for more money. It's outrageous !

ACG

Ask for your £399 back as they are not providing what they said they would?

Shakey007

Poosbert, did you chase up Connells for the lifetime fee that they seem to be welching on? I'm in exactly the same position as you 2 years out from using them. I've complained to them in writing but was wondering if anyone else had any results so far?

amnblog

I am going to ask my window cleaner about a Lifetime Fee. Pay him once and never pay again - my only hope is that he can stay in business.

ACG

But if your Window cleaner offered it you took it up and he was still in business 2 years later, you would not expect to start paying again?

Shakey007

Regardless of opinions on the fee, they are still in business and seem to be doing rather well. That being the case I don't really see how they can get away with doing what they said in writing they would not do (charge fees for future mortgage advice). I was wondering if anyone had challenged this yet.

ACG

Dont worry about others, bang in a complaint. They can not defend it, if they give you the brush off take it to the ombudsman. At that point not only will it cost them a few hundred quid because a complaint has gone in, the ombudsman will likely go in your favour. So you get your money back and they waste money.

dunstonh

At this time, these lifetime mortgage fees have not been classed as wrong. PPI sales happened the way they did for 30 years before the regulator decided to class the sales process as flawed.

The problem is not so much the fee. The problem is business risk. Its a bit like a pyramid scheme.

1 - In the early years, they get lots of people paying that fee. Nice steady income.
2 - When the mortgage deal expires and the person wants a new deal, they cant charge another fee. So, no fee income just commission income.
3 - In later years, they end up dealing with so many remortgagers on the lifetime deal that they are not getting any fee income.
4 - either they employ more people despite taking less income or they close down. Other companies that have done this have closed down. They can keep it running for as long as they have people paying fees.
5 - Biggest risk is if mortgage commission is banned. They will have zero income on remortgagers.