Confused - can anyone help?

blackangeluk

Any advice?

Have cancelled various insurance policies as I was paying too much and had a stroppy answer phone message from the insurance broker saying that I will now have to pay him a fee, as he will not get commission. :mad:

To be entirely honest I haven't checked the small print before cancelling the DD's so he may well be right. He also said that the only way to avoid his fee was to rearrange policies with him. I haven't signed anything with him, only the actual policies, i.e. with Friends Provident, Norwich Union

I used Cavendish Online who Martin the God recommended and paid them a fee and got a lot cheaper quotes. Now I'm wondering how much a fee I'm likely to pay and if I'm better sticking with the broker

lisyloo

Did they give you a letter of their terms of business?
If so then read it.

They sometimes do have conditions that they can reclaim their fees from you, however I have no idea if these are "fair" or enforceable.

If you don't have a copy then ask them for a copy (preferably ask a secretary and not that stroppy broker who might "manufacture" a special document just for you).

If you live nearby then go in and ask for a copy so they can't doctor it.

olly300

You need to read the small print, then post any of the small print if you think it falls foul of the "unfair terms in consumer contracts regulations".

blackangeluk

Hi, I have looked at all the policies and all that is attached to them is a letter enclosing the police document and conditions, and a receipt for me to sign to confirm safe delivery. Nothing is attached that relates to the insurance brokers fees or terms of business.

I will call in today and ask for terms of business. I did go and have a look at their site and under their section terms of business is the following:-

blackangeluk

REGULATOR'S STATEMENT

Those who advise on life assurance, pensions or unit trust products are: EITHER Independent Advisers OR Representatives of one company

Your Adviser is Independent and will act on your behalf in advising you on life
assurance, pensions or unit trust products. Because your adviser is
independent, he or she can advise you on the products of different companies.

[Name of member, address and telephone number] is regulated by the Personal Investment Authority (PIA) and is bound by PIA's Rules.

We offer Independent Advice on and arrange life assurance, pensions,
investments in authorised unit trusts, individual savings accounts and other
collective investments.

You have a right to inspect copies of contract notes, vouchers and entries in
our books or computerised records relating to your transactions. We keep
records of our business transactions for at least six years.

If you should have any complaint about the advice your receive or a product
which you have bought please write to the Compliance Officer [Address and
telephone of person that complaint should be addressed],

If you make a valid claim against [Full name of member] in respect of the
investments we arrange for you and we are unable to meet our liabilities in
full, you may be entitled to redress from the Investors Compensation Scheme;
details of the cover provided by the Scheme are given in a leaflet which we
will send you at your request. Further information is available from the
Financial Services Authority and the Investors Compensation Scheme.

We offer Independent Financial Advice, but occasions can arise where we, or one of our other customers, will have some form of interest in business which we are transacting for you. If this happens, or we become aware that our
interests or those of one or more of our other customers conflict with your
interests, we will inform you in writing and obtain your consent before we
carry out your instructions.



We derive income from commission paid to us in respect of transactions in life
assurance, ISAs, unit trusts and other regulated collective investment schemes and in investment trust companies' shares held in an ISA or regular savings scheme. We shall tell you the amount of any commission payable to us on any
such investment.

If we receive commission or any other form of benefit from the issuer of a
security or from another intermediary, we will inform you, but we will not tell
you its amount unless you ask us to do so.

We require our clients to give us instructions in writing, to avoid possible disputes. We will, however, accept oral instructions provided they are subsequently confirmed in writing.

You, or we, may terminate our authority to act on your behalf at any time,
without penalty. Notice of this termination must be given in writing.

When we have arranged any investments for which you have given instructions we will not give you any further advice unless you request it, but will be glad to advise you at any time you ask us to do so.

[FULL NAME] DOES NOT HANDLE CLIENTS' MONEY. We never accept a cheque made out to us (unless it is a cheque in settlement of charges or disbursements for
which we have sent you a bill) or handle cash.

We will make arrangements for all your investments to be registered in your
name unless you first instruct us otherwise in writing.

We will forward to you all documents showing ownership of your investments as soon as practicable after we receive them; where a number of documents relating to a series of transactions is involved, we will normally hold each document until the series is complete and then forward them to you.

Click here to contact us if you have a question about our terms or policy.

olly300

States nothing about paying them back if you cancel. Seems like the broker is talking rubbish.

So:
1.Get their full terms in a written document via secretary or get someone else to ask for the booklet.
2.Write a formal complaint letter saying you don't owe them anything from their documentation, mention the "unfair terms in consumer contracts regulations" and state you will take the matter further if they try and charge you. Sent letter by recorded delivery and wait for reply. (Most financial companies have 2-3 months to deal with your complaint properly so wait 3 months.)
3. Complain to the financial ombudsman if they insist on charging you or don't reply to your letter.

dunstonh

You need to look at the initial disclosure documents. That is not all the documentation.

Companies are allowed to do this where it is stated in the terms. The courts will support them were there is a fee agreement. Where there is no fee agreement, then it gets harder to enforce.