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

betmunch

Not that I like sticking up for connells, but I think you will find they have you on a technicality, that said, I still agree with ACG, chuck in the complaint, take it to the Ombudsman and see what comes back.


What they have done in my opinion in wrong.


My understanding of whats happened:
Connells start offering a one off, or lifetime broker fee.
The Lifetime broker fee becomes the popular one so the one off fee is then dropped.
Connells then realise that that they are open to the business risk described by Dunston above.
They then introduce the "admin" fee, which is a separate fee to the broker fee so they can still charge you the admin fee even though you have paid for the lifetime broker fee.


Ta da! What a jolly good idea!

Shakey007

Thanks for the replies. That sounds about right, betmunch.

In a letter to me they wrote about the Lifetime Fee 'This fee covers the cost of providing you with mortgage advice for this and future 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.'

I'm not sure if they can argue that on a technicality, but I think it is clearly meant to imply that the client will not be charged any future fee. Hopefully an adjudicator would see it that way, but we'll wait and see what they come back with!

betmunch

Shakey007 wrote: »

Thanks for the replies. That sounds about right, betmunch.

In a letter to me they wrote about the Lifetime Fee 'This fee covers the cost of providing you with mortgage advice for this and future 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.'

I'm not sure if they can argue that on a technicality, but I think it is clearly meant to imply that the client will not be charged any future fee. Hopefully an adjudicator would see it that way, but we'll wait and see what they come back with!

For me that wording will clearly encompass the newer admin fee, I would expect any complaint about fees to Connells paid by you would be upheld in your favour.


Please keep the thread updated on how you get on.

Shakey007

Sorry for the long wait - this dragged on a bit. Connells completely rejected my claim with no real explanation, other than it being a business decision to introduce the £99 fee (which we would not have to pay if we used them again!). It went to an FOS adjudicator (who agreed with us) and then it was escalated to an Ombudsman as Connells disagreed with their verdict. We got the final letter today - very much in our favour.
:beer:
The Ombudsman agreed that Connells should not have refused to drop the £99 admin fee as it was covered by the £399 fee already paid last time. We also managed to get the mysterious £149 'valuation and administration fee' refunded for the same reason. 80% of the £399 Lifetime Broker fee is to be refunded, on the basis that we could have used them about five times (a result I was pretty pleased with ). There's 8% interest on top until settlement, so I'll have to have a good long think about whether to accept or not.

I thought it was quite bizarre that it went this way, TBH. In refusing to drop the £99 fee they have missed out on a new mortgage commission, had to refund me about £590, and probably been hit for £550 by the Ombudsman. That's not including the hours of staff correspondence time. I understand that they don't want a reputation for snap-folding to complaints, but it would not have been a big deal to just back down on the £99 at the start as I repeatedly requested.

At the time I refused to pay the admin fee and proceed with the mortgage, the Connells broker got pretty angry with me on the phone: "why are you quibbling over £100 in a transaction of hundreds of thousands?", "well I hope your house move goes through okay, it could well fall through if you don't use us". It was pretty dire - I understand the frustration of time wasted, but I was only pulling out due to them not keeping to the agreement. We had no problems dealing with the mortgage lender directly (they turned out not to be the one Connells had recommended).

In summary it has all turned out well. Thanks to this site I am a lot more financially savvy now, so hopefully wont find myself in a similar situation again. Also - if you have a complaint with Connells (or others) and are rejected by them, please make sure you take it forward if you have a solid case. They can't be allowed to break their own written rules!

ACG

Nice one!
If you are offered something and take it up, that deal should be honoured. I do not always agree when I see FoS decisions but this is one that definitely went the right way.

And on a Friday, I would say a few drinks are in order...on Connells obviously

dunstonh

Thanks for the update shakey007. The end result is exactly what it should have been and it is a shame that connells decided to refer it to an ombudman when anyone objective can see the flaws in what they did.

And remember, in addition to the refund to you, they have had to pay the FOS £500.

marsman802

We do love a victory!

stator

Fantastic. Really hate Connels group. Just a shame they haven't gone out of business yet.

Shakey007

My fun with Connells group continues now that I have received a cheque from them today. I was wondering if someone could please double check my maths/logic before I decide what to do.

The final Ombudsman decision stated that Connells 'should add interest at 8% simple from the date the fees were paid to the date of settlement'. The principal amounts to £468.20, and it has been a little over 3 years since the fees were paid (end of May '13). Connells has posted me a cheque for £505.65, which is more or less exactly 108% of £468.20. To my reckoning, it should be more than £580 (i.e. £468.20 plus 3*0.08*£468.20). They didn't explain how they got to that figure.

Am I misunderstanding the meaning of simple interest or calculating it wrong? The FOS didn't state '8% simple p.a.', but I would have thought that is what they mean, not 8% simple per 3 years. The amount Connells has sent implies to me that there is no interest - I have effectively given them an indefinite 0% loan with an 8% handling fee?

I'll wait on cashing the cheque. I can get the FOS to clarify this but it might take a while and I didn't want to bother them if I've got this all wrong!

Thanks in advance

TrickyDicky101

I agree with you - simple interest simply (hohoho) means the interest doesn't compund - you still have to pay it for the peirod of the 'loan' ie 3 years' of 8% on the original amount.