Car insurance admin fee

vaio

yep, but on the other hand if brokers are required to be transparent & disclose fees then what do you suggest as a way of enforcing it?

_Andy_

Whether the overall price was/is best isn't the point. The point is the insurer should have disclosed their cut/fee/whatever before they started.

rs65

vaio wrote: »

yep, but on the other hand if brokers are required to be transparent & disclose fees then what do you suggest as a way of enforcing it?

Interesting one. They have disclosed the fee, in that they quoted the total amount including the fee. They just didn't disclose that part of the total included a fee. They are not trying to add on a fee that the OP wasn't previously aware of (assuming the transcript, if there is one, confirms this).

ICOB 4.3.1

http://fshandbook.info/FS/html/handbook/ICOBS/4/3

vaio

rs65 wrote: »

Interesting one. They have disclosed the fee, in that they quoted the total amount including the fee. They just didn't disclose that part of the total included a fee. They are not trying to add on a fee that the OP wasn't previously aware of (assuming the transcript, if there is one, confirms this).

ICOB 4.3.1

http://fshandbook.info/FS/html/handbook/ICOBS/4/3

(1) A firm must provide its customer with details of the amount of any fees other than premium monies for an insurance mediation activity.
(2) The details must be given before the customer incurs liability to pay the fee, or before conclusion of the contract, whichever is earlier.
(3) To the extent that an actual fee cannot be given, a firm must give the basis for calculation......

On the face of it the requirements above haven't been complied with so what sanction is applicable?

rs65

vaio wrote: »

On the face of it the requirements above haven't been complied with so what sanction is applicable?

This is where Magpie Cottage should step in.

vaio

yep, but until she does, the only sanction I can think of (apart from management boll ocks-speak "lessons will be learned, procedures put in place blah blah") is to make the fee non-collectable or refund if it has already been collected.

It's simple, clear & unambiguous and would pretty much guarantee that the fee would be disclosed in future