Reclaim of broker fee on mortgage

[Ruby]

I was 'advised' by a Claims Management Co. that I should be able to claim back my broker fee on a mortgage I took out in November 2002. Is there any truth to this? Mortgage company were IGroup (now know as GE Money) who you could not approach directly but only through a broker - I paid £2500 for the broker Loanline Ltd - If it had been now I would have challenged the amount, what an easy way of making money for next to no work! I also have no idea what commission IGroup paid them either, no doubt I paid for that in some way or another too. I have since paid off the mortgage in 2005. Are the CMC's right in saying I have re-dress on this? Details of agreement are as follows: Advance amount £114.000.00 Broker Fee £2500, Legal Costs £300 Completion Costs £200 total loan amount £117.000.00. The agreement was not regulated under C.C.A.

[TUTTSI]

Re: Reclaim of broker fee on mortgage

Hi Ruby

I will give a nudge for someone with more experience to help you.

In the meantime can you post up the agreement, but omitting your personal details.

Thanks
Tuttsi

[Ruby]

Re: Reclaim of broker fee on mortgage

Don't have a scanner at home will ask my hubbie to do it from work tomorrow. Interestingly in the T& C it states the following:-
1. We wil pay the broker on your behalf out of the loan any fee shown at D on page 1 (£2500). 2. Your broker will receive commission from us if your loan completes. the commission he receives will be a percentage of the amount of the loan which may vary according to the type of loan which we make.

Thank you for all your help, it is greatfully received.

[Ruby]

Re: Reclaim of broker fee on mortgage

Hi, managed to get hubby to bring a scanner in from work for the night.
Would much appreciate feedback with regard to the attached scans (front of document and conditions on rear).
Thanks.

[Tools]

Re: Reclaim of broker fee on mortgage

It is my understanding that you would not be able to reclaim the brokers fee and that the CMC are falsely informing you of this.

The brokers fee is not a hidden commission and you were fully aware that you were paying it.

You say that iGroup may have also paid your broker a commission, yes, that was the £2500 that you agreed to, nothing else.

Unfortunately, I do not think you have a valid claim against them, but this is just my opinion.

You also state that if you had been aware of how much work was involved you would have queried the fee, the fee is a percentage of the loan value and not for how much effort they did or didnt put into your case.

How much did the CMC say they would charge you to claim this back and if you were aware of how much work they did to reclaim it, would you still pay them?

[Ruby]

Re: Reclaim of broker fee on mortgage

Thanks for your quick response. In the T & C's is states in two separate clauses:-
2.1 We will pay the broker on your behalf out of the loan any fee shown at D on page 1.
2.2 Your broker will receive a commission from us if your loan completes. The commission he receives will be a percentage of the amount of the loan which may vary according to the type of loan which we make.

To me it sounds as if the broker fee and the commission are two separate issues. Would you not agree? Nowhere did it state what the percentage commission was paid or how much apart from the broker fee. Also what do you think of the agreement itself? My first observation is that is was not signed by the company (pen mark score through only). The agreement I have was a copy sent by the solicitor at the time acting on IGroups behalf.

[Tools]

Re: Reclaim of broker fee on mortgage

The commission paid to the broker by iGroup is paid directly by them. The only amount you have paid to the broker is £2500 as stated on the agreement.

I will have a look at the signature but as it is not a regulated agreement covered by the Consumer Credit Act 1974, I am not aware that it has to be signed by them. That question is not something I could answer confidently as I do not have enough knowledge of that area.

[Ruby]

Re: Reclaim of broker fee on mortgage

Thanks for all your help. To answer your earlier question the CMC was not charging any upfront fees but if the claim was sucessful they would take a 25% cut. They MUST be having some success with their claims otherwise they would be out of business - no win no fee. Does anyone know about non-regulated agreements?

[TUTTSI]

Re: Reclaim of broker fee on mortgage

Hi Ruby

Can I ask you, how did you come by this particular CMC, did they cold call you or did you contact them from their advertising?

Have you thoroughly read their T & C's, as they have a habit of changing the goal posts as many posters on here have found out.

Do you know anyone else that has used them and have they been sucessfull in receiving a settlement?

How long have they been in business? as many CMC's we know of have only sprung up in last 12 months and do not have a proven track record and in fact we are finding it difficult to find anyone who has actually had a successfull claim.

Do they have a Minisry of Justice authorisation number?

Do they have a web site? if they do can you post up a link so we can check them out.

Tuttsi

[Main man]

Re: Reclaim of broker fee on mortgage

On the commission aspect you may be interested in reading The Non Status Lending Guidelines
http://www.oft.gov.uk/shared_oft/rep...t/oft192v2.pdf (paragraph 16,19)

although in the agreement it states that the Broker will receive a commission there is no disclosure of the amount or calculation as to what he would recieve?

So although the commission wasn't secret would it be more a half way house case as per Wilson v Hustanger?

[Tools]

Re: Reclaim of broker fee on mortgage

Thanks for that Main man, you learn something new everyday, very interesting.

[zizzyfit]

Re: Reclaim of broker fee on mortgage

The borrower should be informed of the commission disclosed or not, that is what the rules are.

[Ruby]

Re: Reclaim of broker fee on mortgage

My thoughts exactly - Main Man and Zizzyfit. The CMC are called claim4refunds - they do have a website but I don't know how long they have been trading, I would make a calculated guess thats its less than 12 months. They have just informed me that due to the huge back log of cases they have changed their solicitors to ATM and new T & C's have been sent to me stating again its a no win no fee and I pay £499 plus VAT for any case that is sucessful. There are some bells that are ringing in my head. In my years on this earth I have learnt that if it sounds to good to be true then it usually is. I heard about them through an advert but do not know of anyone personally who has used them. I have no qualms of trying to do the donkey work myself, I just feel my knowledge is lacking, but quickly improving thanks to LB! Back to IGroup and the Broker then - I would like to write a letter to IGroup asking them to disclose what the commission was as per their clause 2.2. Any idea how to word the letter and whether I have a leg to stand on?
Once again thanks for all your advise, much appreciated.

[TUTTSI]

Hi Ruby

I am also extremely interested in your case as we were also with the igroup which like you is fully paid off and am in the course of reclaiming the charges. The broker fee and/or commission would be a huge chunk.

Tuttsi x
Name & Registered Office:
CLAIMS4REFUNDS LTD
65A DANEHURST STREET
LONDON
UK
SW6 6SA
Company No. 06957608


Status: Active
Date of Incorporation: 09/07/2009

Country of Origin: United Kingdom
Company Type: Private Limited Company
Nature of Business (SIC(03)):
None Supplied
Accounting Reference Date: 31/07
Last Accounts Made Up To: (NO ACCOUNTS FILED)
Next Accounts Due: 09/04/2011
Last Return Made Up To:
Next Return Due: 06/08/2010

[Ruby]

Re: Reclaim of broker fee on mortgage

Reclaiming charges? Tell me more ... Main man's link was very interesting. I want to write and challenge them about the two clauses in their T & C's. If you don't ask you don't get.