Reclaim broker fee's?

Ledodi

I was phoned today by a PPI reclaim company and while i would usually just hung up i let them go on for bit. I explained to them that i have never taken any PPI on anything i have ever borrowed. They then asked about mortgages and said that since i have had 2 mortgages that had both been arranged through a broker and the broker had been paid by the mortgage company i could claim this money back as it had been added onto my mortgage fee without my knowledge. Can anyone confirm if this is correct? Thanks.

dunstonh

Can anyone confirm if this is correct?

No. It is complete BS.

They then asked about mortgages and said that since i have had 2 mortgages that had both been arranged through a broker and the broker had been paid by the mortgage company i could claim this money back as it had been added onto my mortgage fee without my knowledge.

Independent mortgage advisers have no choice but to do it on fee basis. That is their remit. Whole of market mortgage brokers are allowed to charge for their services. This can in addition or instead of the commission. Nothing wrong with it in the slightest.

Claims companies dont half tell some porkies to create trouble.

Ledodi

Didnt think it sounded right. Thanks for your help!

lin55

I too used a financial advisor to help me choose a mortgage as the term of my other mortgage had ended.I asked him several times how much his services would cost me and he insisted that it would cost me nothing. As I don't believe i'm a stupid person & therefore wouldn't be getting this guys advice for free, I (thought) I had made it clear that I wasn't prepared to pay for advice. he told me that I, as the customer, didn't pay anything but his payment came from the building society for recommending them. This sounded feasible to me. All he did was use his laptop to go on comparison websites in the same way as i do when choosing car insurance etc. I took out a mortgage with a different building society & when I got my first statement over £2,000 had been added to the amount I owed on my mortgage. I immediatelyy queried this with the building society and they told me it was the financial advisors fee. He had misinformed me, actually told me his services would cost me nothing, surely that it fraudulent. I never signed a contract with him and obviously wasn't told his fee rate. can anyone advise on who i should contact to complain?

dunstonh

As I don't believe i'm a stupid person & therefore wouldn't be getting this guys advice for free, I (thought) I had made it clear that I wasn't prepared to pay for advice. he told me that I, as the customer, didn't pay anything but his payment came from the building society for recommending them. This sounded feasible to me.

Although fee based advice can often be cheaper than fees free, it is quite normal for commission based advisers to be paid commission from the lender. That is how they earn their money. They will of course only consider commission paying deals. Fee based advisers will consider non commission paying deals and if a commission paying deal is selected, the commission is rebated to you.

All he did was use his laptop to go on comparison websites in the same way as i do when choosing car insurance etc.

That doesnt sound like what a mortgage broker would do. They have more advanced software that accesses more deals than a comparison site would and have far better criteria searches and filtering.

I took out a mortgage with a different building society & when I got my first statement over £2,000 had been added to the amount I owed on my mortgage. I immediatelyy queried this with the building society and they told me it was the financial advisors fee. He had misinformed me, actually told me his services would cost me nothing, surely that it fraudulent.

It certainly sounds fraudulent. However, a solicitor would not pay the fee to the mortgage adviser without you agreeing to it first by supply of a fee agreement.

can anyone advise on who i should contact to complain?

You complain to the adviser.

daisylove

I had a similar call today stating that if the mortgage had a arrangement fee that was added to the mortgage we can claim that back. We had a mortgage with Santander in 2006 -2008 and we did it directly with the bank. There was a fee for the mortgage but i have always been under the impression that mortgage companies charge a fee. The person on the phone sold me that we could claim it back. THis doesnt sound right to me.

dunstonh

I had a similar call today stating that if the mortgage had a arrangement fee that was added to the mortgage we can claim that back.

There is nothing wrong with adding the fee to the mortgage. Quite normal. I would estimate that most people do it.

There was a fee for the mortgage but i have always been under the impression that mortgage companies charge a fee.

They do. Quite normal and correct.

The person on the phone sold me that we could claim it back. THis doesnt sound right to me.

There are scam claims companies out there that generate complaints with no reason for complaint. They go on a fishing expedition by making fake complaints on your behalf on the hope that they get lucky. The financial firms are cracking down on this by reporting them to the Ministry of Justice or even taking the consumer to court for making a fraudulent complaint for financial gain in extreme cases.

Often these scam companies will also introduce an up front fee either straight away or come back to you later saying you have a case but you need to pay £495 to proceed further. That is where they make their money.

lin55

There wasn't a solicitor involved in the mortgage negotiation, I had already had a 2 year fixed rate mortgage (my solicitor was involved in the 1st mortgage arrangement)whose time was up. I am meticulous about keeping paperwork and very careful about what i sign and i definitely didn't sign a fee agreement. Your advice Dunstonh has helped because I am now even more certain that the 'adviser' acted fraudulently. I shall try and contact him (although I don't think his office is still there!), also the building society and my own solicitor. if this has happened to me, it must have happened to others too,