Life insurance - clawback and cancelled contract

dylanlawton

Thanks all again.


I've asked both the solicitors and MAB what the breakdown of the £600 is so I'm clear where I stand - I'm probably getting hung up on the distinction between outstanding commission and commission claw back, commission claw back would appear to be between the broker and the insurance provider and not between me and the broker. If they gave me a clear breakdown of what was "left" to pay in outstanding commission I really wouldn't have any argument and would just have to pay (which I would already have done).


Do the solicitors need to formally respond top my question or can they just sit there and then take court action? I don't want it to go to court obviously and I'm guessing there has to be some clear justification before it does. It might be easier to just pay the £600 or maybe I need to seek proper legal advice?

Quentin

Is the solicitor's letter actually a "letter before action"? (Saying something along the lines of unless you pay us the £600 you owe by the next 10 days we will take action to recover it)


(All parties want to avoid court action, so expect a reply regarding your request for itemisation)

dylanlawton

Yes, this is a serious letter - not recorded delivery, any fancy notepaper or any individuals signature but serious enough...it's from Flint Bishop LLP

Quentin

Serious as in an actual "letter before action"?

Stevie_Palimo

It will be the insurer clawing back commission from the middle firm who you used so they in-turn are now placing the onus onto you and seeking that they do not lose anything.


I doubt there will be much you can do tbh.

dylanlawton

Unless the debt is paid within 7 days court proceedings will be instigated...

dunstonh

I'm probably getting hung up on the distinction between outstanding commission and commission claw back, commission claw back would appear to be between the broker and the insurance provider and not between me and the broker.

It is between you and the broker as you agreed a fee with the broker. That fee was covered by the commission on the product you agreed to hold in place for a minimum period. You will not get anywhere with pursuing that point because you are breaching that agreement on multiple points.

If they gave me a clear breakdown of what was "left" to pay in outstanding commission I really wouldn't have any argument and would just have to pay (which I would already have done).

Put that in writing to them and keep a copy. That shows the courts (if it goes that far) that you are happy to meet your contract requirements but are just asking for information to ensure that the amount is correct. As the courts would require that information anyway, its nothing for them to hide from unless they are telling porkies.

Quentin

dylanlawton wrote: »

Unless the debt is paid within 7 days court proceedings will be instigated...

OK, that's a letter before action.


So if you agree you do owe something, then send what you are happy you owe, and ask them to justify/itemise the balance


Alternatively if you are happy you don't owe anything then write telling them so.


Don't pay the £600 if you don't know what it's for!

dylanlawton

I think I'm clear now - I can't argue on the claw back vs. outstanding commission and need justification of what I actually owe...in terms of justification, can I ask them to prove that Legal and General are asking for that sum of money? I don't just want a line that says, you owe us claw back commission of £600, can I ask for official letters?


This is much appreciated - I'm sure there are some good advisers out there but I've had a horrible experience here and really did get a poor deal with the insurance too i.e. I was paying over £100 a month when I could have been paying around £60...that's not my point though, just a sob story!

Quentin

You are entitled to know what the debt is for.


(Though the contract you agreed did allow them to charge you 1% of the mortgage value if you didn't pay the clawback within 30 days)


From your earlier posts you said you were "confident" they were wrong. In what way? Why are you so confident?