carrington carr brokers fee for lifetime service

Paxoman

In september 2005 we paid a brokers fee for a lifetimes financial advice fron Carrington Carr. As we now no they went into administration on 20th March 2012. we understand that Legal and General are taking on their former clients accounts. Does this mean they are offering the same services as are mortgage is due for renewal soon and we have not received any contact or information as to the current situation?
As we have not received the lifetime service we have paid for can we claim the brokers fee back?
Also the fee was added on to are 25 year mortgage.

yours Jim

dunstonh

That service model is flawed and should be banned. It nearly always results in commercial failure.

Also, they were not independent (and neither are L&G reps). So they only considered commission paying deals anyway. Exactly the same as most whole of market mortgage advisers would do at little or no additional cost. It wasnt for financial advice (as you say) but only mortgage advice.

As we have not received the lifetime service we have paid for can we claim the brokers fee back?

Carrignton Carr no longer exist. They are the ones that offered the service. L&G will honour it despite them not offering it in the first place.

Also the fee was added on to are 25 year mortgage.

Mortgage fees are allowed to be added to the mortgage.

You could try a complaint to L&G and see what they say.

magpiecottage

Complain to L&G.

You should complain that you were misled by their representative into purchasing the service and, as a result, borrowed more on your mortgage than you would otherwise have done and are seeking to have the extra borrowing and the interest charges incurred repaid.

excchfadvisor

I worked for this company for a number of years as an advisor and can state that I would find it hard to believe that ANYONE can claim to not be aware they had or they were missold PPI.

Every customer signed a form, one of many it must be said, that explicitly laid out what the customer was buying and the implications of adding the PPI premium to the mortgage. Copies of these documents were left with the customer. It is also true that the way it was sold and documented did change between 2002 and 2010, due to the regulations that came in.

So far as the arrangement fee and being forced to pay this for a lifetime's advice is concerned. You did not have to pay it, you could have refused and gone elsewhere. CCHF were independent mortgage advisors but were not whole of market. This means they chose to only use a number of lenders not all of them. Unfortunately the company has put themselves into liquidation to avoid the misselling claims, although as I have said I find it hard to believe that anyone could make a successful claim, so your lifetime service fee is probably lost. I am not aware that L&G offer mortgage advice so do not see how they would be able to help accept to process a complaint. However it must be said that L&G were VERY aware of how CCHF operated, and were very pleased to get the life and home insurance business we sold for them. Indeed CCHF were one if not the largest provider of insurance business to L&G outside of L&G own sales teams.

My only beef with CCHF was that they treated their staff appallingly conversely I believe that they did provide a good service for their customers.

magpiecottage

Where does the OP say they were forced into paying the fee for a lifetime service. They were misled into it.

I bet you never told them that by paying your fee rather than taking out a slightly smaller mortgage they would pay interest on it over then entire term of the mortgage loan.

THAT IS MISSELLING

I bet you never told them that if your company was not there to honour the agreement they would lose their money.

THAT IS MISSELLING

To be compliant, the sale of single premium PPI has to meet very specific guidelines. It has been done correctly but it is very rare.