Please help !! Probably broker needed , arrangement fee waiver ?

House.buyer.sarah

Hi I've posted a few times but for this I really need help with
I took out a mortgage in 2009 for my old house went through a broker ( mortgage advise bureau) at the time I used there legal and general for life insurance or protection can't quite remember now but was paying by direct debit , ..
Forward to now
Sold this house 7 weeks ago took out mortgage with halifax used all their insurances ( house life cover) and cancelled direct debits for old house as no longer needed ( I'm pretty sure in the many change address calls I made I phoned legal an general to say was cancelling )

Now today went to old house see if any post slipped through, and there's a letter worded very strongly about I'm liable for the commission that legal and general will claw back from mortgage advise burea ?? There's no amounts on letter, but says about %s if mortgage etc.. And they will pass debt on I can't contact them until Monday typical !!
They sent me photo copy of form I've signed agreeing to this my signature is dated 22-10-09 but agreement at top of letter starts 22-10-2010 ?? Nearly a year later than my signature ??
I've just moved house cleared all my debts so this is just a nightmare !!

It says something about " the life insurance or protection insurance does not come into effect or 38 months worth of premiums not paid by client then the outstanding commission amount lost by MAB in respect of life policy or protection insurance will be payable by client .

From me reading that I would say I'm well out of the 38 months anyway ???

Please help worried sick x

House.buyer.sarah

Does anyone have any ideas ?? If not that's making me more worried ?!!

Thrugelmir

Take advice on the terms you signed up.

As a general question. Was it necessary to cancel all the old policies?

The advisors are in the right legally I'm afraid to say.

House.buyer.sarah

Oh no so there's no amount to pay it says il phone up on Monday and find out what I need to do , the policy wS for old house and needed to be cancelled though ? Am I looking at £10,a £100,a or £1000,s I just don't get it all x

ACG

Find your paperwork, on there it will say how much the commission was.

It will also say something like months 1-36 (or 1-48) £xxxx commision will be paid and then from month 37 or 49 onwards £x.xx will be paid.

Divide how much commission was paid, by how many months it says. Multiply that figure by however months are remaining (assuming there are months remaining) and that is what you owe.

Based on the dates, I would be surprised if anything is owed - if there is it will be very little.

House.buyer.sarah

It says over 38 months which I'm well clear off anyway x il phone Monday then thanks for above settled me a little bit

GMS

4 year clawback would be right. Anything which goes off risk will mean a pro rata payment back.


I take mine on the drip ,i.e when the client pays I get it. If they cancel I don't.


I don't agree with the practices of the big boys. More sale than advice. If they waive their fee on the basis of 4 years insurance premiums then that's up to them. Personally I would rather make an honest up front living without stipulations.


Ask them for every bit of paperwork relating to it including fee agreements and waiver agreements.


Good luck

kingstreet

We're the same.

£250 fee for mortgage and nothing to do with protection sale.

If you want protection, we'll do it but we don't link the mortgage and the protection together.

ACG

Im with GMS and Kingstreet.

House.buyer.sarah

I phoned today they wanted me to pay £72 as say I fell short of the 38 months by 4 months !!!! Anyway explained I signed this contract back in 2009!! Funnily enough they won't take the money today she's going to get back to me as from this date it's unforcable .