Unexpected bill from IFA (clawback)

Beckyy

It doesn't say anything with regards to clawback or a fee structure other than agreeing to paying by fee and commission - and we have paid him by fee and commission as he recieved the £306 commission from our mortgage - which he hasn't mentioned at all in this invoice. He also recieved commission from our initial life insurance & house insurance policies taken out 2/3 years ago, and our old mortgage.

He never made any phone calls regarding insurance either, all the quotes and applications were done online (and mine was mostly wrong at that). He only made phone calls regarding our mortgage, mainly because he applied for one which we could not take out as I hadn't been in my current job for 12 months. It's not like we've gone to him specifically for insurance, applied then just cancelled it and left him with nothing.

The insurance was just something on the side that he pushed for, even though we said we didn't feel we needed/wanted it at this time. He told me to cancel mine when I gave him my reasons for thinking it was unecessary, we just didn't discuss cancelling my OH's as he went on holiday.

ACG

It doesnt matter how he applied - phone, internet, carrier pigeon. Your arguing about the life policy commission - the problem is, you took the policy out. You accepted his advice on the matter, whether he made a balls up of it or not.

If you havnt signed anything - job done sorted.
If you have, then you need to argue this on other grounds that he hasnt followed the correct procedure, but that isnt going to be an easy case as its your word against his.

Beckyy

Thanks ACG, I'll get a letter sorted requesting a copy of a sign fee structure/agreement.

Does the fact that the doesn't mention lost commission (and just breaks it down into fees) in the invoice make any difference?

ACG

To me it seems like hes charging you for meetings and paper because of the clawback in commission - where as what he should really be doing (if he has the paperwork to back it up) is charging for the lost commission.

Its like hes trying to justify his commission with what it goes on (which i think is his mistake - most brokers ive seen do this take to court for lost earnings)...presumably you have never seen anything that states he charges £60 per appointment etc. So i would be arguing that.

However, before i shown my hand, i would be asking for a copy of this signed agreement and to explain how much he wants paying, why he wants paying and to detail what its for, how much commission he was originally paid and how much has been clawed back.

If he says he wants paying because you cancelled your policy and its for meetings, research etc - then i would be arguing that you were never told how much meetings would cost.

dunstonh

Does the fact that the doesn't mention lost commission (and just breaks it down into fees) in the invoice make any difference?

If his original fee was broken down and it was FEE BASED. Then it makes sense to break it down again (although the breakdown is laughable). If it is commission then it makes no sense to break it down as the commission method is one of cross subsidy. Large premiums bring in more commission than smaller ones. So, breaking down costs is irrelevant on commission basis.

Don't worry about any of this. You are going too far into it. All you need to do at this stage is ask for that copy of the fee agreement signed by you. If he cant supply one then its game over for him. He can huff and puff but without an agreement the court will not rule in his favour. If he can supply one then we continue the options once we know what it says.

Beckyy

How does this sound?

Dear X,

This letter is regarding the recent invoice you sent to us for fees you believe are owed to you.

We do not understand why you have sent us this invoice, and do not feel that the fees are valid. When asked before we took out your services you told us clearly that the only fee we paid was £150, which covered all of your services. We were never shown or made aware of a fee structure or agreement stating otherwise, nor did we sign such a document.

Could you please provide a copy of a fee structure, signed by us, which specifies the fees you have invoiced us for. Along with your reasoning for these fees and a breakdown of any commission received for products we have taken out through you.

Yours Sincerely,

I know there was the original document from 2009 stating fee & commission (but no mention of actual fees in it) so please be blunt with any corrections if wording etc. is wishy washy or not quite right/needed. Thank you again, your replies have been invaluable.

kingstreet

Too much verbiage. Stop justifying why you think you don't owe anything. Stick to the point.

"Dear X,

Re your letter of dd/mm/yyyy requesting payment for fees you suggest you are owed.

Please supply us with a copy of a signed fee agreement which shows these fees are payable.

We look forward to hearing from you.

Yours sincerely,"

Beckyy

Thank you. I've gone with the:

'Dear X,

RE: Your letter of dd/mm/yyyy requesting payment for fees you suggest you are owed.

Please supply us with a copy of a signed fee agreement which shows these fees are payable.

We look forward to hearing from you.

Yours sincerely,"

I'll post it this morning, and will get a proof of posting instead of sending it recorded as I'm quite sure he leaves his office for an hour or so at lunch and normal post will mean he couldn't miss the delivery and attempt to charge us for his time to pick it up. :undecided:

Beckyy

I just wanted to update te thread to say that we haven't recieved a reply, or heard a peep from him since we sent the letter. I'm hoping that's the end of it. Fingers crossed and thank you all for your invaluable help!

dunstonh

Good. Huff and puff to scare you but backs down when you bite back.