advise anyone, not sure where to post this

runner20k

we had financial advise 2 years ago when we purchased our house. who arranged mortgage, health cover and all the rest of it. they didnt mention fees or anything at the time. we recently canceled one of the policys because we thought it was a waste of time. had a letter from advisor asking for £800 as we had cancelled policy that we where tied into for 4 years, we were not told this at the time and like idiots we didnt read the small print. he has sent us a form which we signed where he is waiving his fees because we have taken the policy's etc ,, but the form is pretty much blank ie the fees waived part was not filled out by him so we did not know at any time what his fees where if that maes sence, does any one know how this would stand in court as yes we did sign the form but we where told at any time what the fees where....

thanks to any one who can help

alwaysonthego_2

you should repost this on the insurance thread where you will get more help but I am sure that he can't do this

dunstonh

If you signed a fee agreement agreeing for the fee to be offset by the commission, then yes they can do this. However, many do not get fee agreements signed so cannot enforce it (although they usually try and scare you to pay) and the commission clawback is pro-rata so they would have had 2 years worth.

Bean_Counter

runner20k wrote: »

they didnt mention fees or anything at the time.

Isn't it a requirement under the FSA that they disclose to you what their fees are?

runner20k

thanks for that ,, the form we signed has not had the values filled in, so the fee being waived box is empty. does that give us the right to contest this ???? as they havent disclosed the fee when we signed.

Bean_Counter

runner20k wrote: »

thanks for that ,, the form we signed has not had the values filled in, so the fee being waived box is empty. does that give us the right to contest this ???? as they havent disclosed the fee when we signed.

I'm not an IFA, but I would challenge it.

dunstonh

If you havent signed a fee agreement, then they cannot enforce a fee. Lets say they take you to small claims court. The judge will ask for evidence that you owe them money. The fee agreement would be that evidence. If there is no evidence of a contract agreeing what you are liable for, then its hard for them to enforce it.

You should contact them back and say that if they wish to pursue the fee, that you will complain and follow it up with the FOS if required. A complaint through the FOS will cost them £400 (just gone up) if they deadlock you so its unlikely they will let it go that far.
A fee agreement should state and amount and can show commission offset but any commission above the amount of the fee should be rebated to you. Bet that didnt happen. It would be interesting to see what their fee option is for arranging the business you did. The commission is probably far higher.

runner20k

many thanks for the advice it has been very useful , i have constructed a very stern letter and will await their reply.

It is really nice that people who i have never met have taken time to reply in my hour of need (lol) thanks to all