excessive broker charges?

toonfish

Dan_Collins wrote: »

I think the TCF initiative is a pain in the bum and some nobody has come up with a new idea to make our lives harder! I mean... if you do your job correctly and run your bunsiness correctly you will be treating your client fairly! I dont need a pen pusher who has never seen joe public let alone spoke to them tell me if I am looking after my client or not!

Rant over!

won't be long before they're putting in a claim because they didn't get a Christmas card

homer_j_3

TCF isn't about giving the client everything. It is about being fair in the way you choose to operate and being balanced.

An example of this could be:

You charge a fee to one person yet not the other. Is that treating customers fairly? Possibly - if one person came from a lead source which asks 50% of your commission and the other person walked into your office and you get to keep all the commission. It becomes unfair when both sources walk through your front door (or come from the same lead source) and you charge one but not the other.

It is just the FSA being the FSA at the end of the day and we have regulation coming out of every hole possible. Unfortunately there are people in the industry (and there will be in any other industry I am sure) that will abuse and push the boundaries to do as little work for as much money.

I believe that the industry could work on some simple guidelines and structures if the law would enforce a reasonable persons test when they are deemed to have been breached but because we are in a world where we have to have 37 paragraphs of legal jargon to explain what could be said in 1 - it would not work now.

ItWasntMe_3

Thank you all for your very enlightening replies!! i got my own mortgage 15 years ago and have never really made any changes to it, so was not too sure on these brokerage fees, but had an idea that he had been really done over!!

He will be bringing the paperwork back in on Monday for me to check it again, because something that i am sure i remember from the 'proposal' is that it says this broker can only deal with the one lender, so cannot understand how they can justify such a large charge when not actually having to do much but speak to one lender?!
The fee was added onto the mortgage, and the figures say that an amount of £30,000 with the fees added and interest he will pay back in the region of £45,000 in 8 years, seems very steep.

I have told him of your comments and he is obviously now seriously considering lodging a complaint against the way he has been 'advised', he would love to get some money back, but overiding concern is that these people will surely come across and profit big time from some other 'innocent' person who doesnt know any different

Thanks again all for your responses so far - all advice greatfully recieved!

UK007BullDog

Totally agree with Homer on the TCF issue as I see every day customers who were ripped off or lied to ragarding products and also underhand goings on to get the mortgage through by the broker. Having said that not all customers are angels either.

Dan_Collins_2

I think lenders need to increase TCF standards also via the standards of service at the mo for a start!!