Undisclosed Commission and Broker Mis-Selling
It is all too common for brokers to ignore the duty of care that they have over their clients in order to earn undisclosed commissions for recommending products that may not be in the best interests of the customer.
The Role of the Broker
Brokers are professionals that are responsible for arranging a service, in this case credit facilities, on behalf of their clients. Customers pay a fee to the broker which is pre-agreed, and the fee can, in some cases, be in the thousands.
The Duties of a Broker
A broker is expected to:
- Act in the best interests of the borrower
- Avoid conflicts of interest
- Not make a ‘secret profit’ from their services
- Disclose any commission or profit that they make to their client
- Provide a high standard of service
- Follow the standard that is expected of any independent Financial Adviser
Mis-selling and Brokers
Many customers who borrowed from Blackhorse Limited and GE Money Home Lending, as well as other companies, used brokers to help arrange the loans. What they did not realise at the time was that the lender had agreed to pay an undisclosed amount to the broker as a form of commission, and this is paid in addition to the broker fee that the client had already agreed upon.
Clients expect that since they are paying a fee, the broker will act in their best interests. The loyalty of the broker should be towards the customer. When the broker accepts additional, undisclosed commission, this means that there is the possibility of a conflict of interest. The customer does not get the impartial information that they were paying for.
Undisclosed Commission from Brokers
If you made use of a broker, and paid a fee, there is a chance that the broker received some additional, undisclosed commission. This was a common occurrence for a long time. You may be able to get the commission refunded.
Contact us to discuss the situation with our team of mis-selling experts. We would be happy to discuss your situation and take the details of the lenders that you worked with. We will investigate for you.
Is there a Claim Deadline
If you wish to pursue a claim then the credit agreement that you took out must still be active. If you are still paying off the debt you should be able to make a claim. If you finished paying for the debt within the last six years then you may still be able to pursue a claim.
If you are not sure when you finished paying off the debt, you should still get in touch with us. We can investigate for you and the sooner you take action the more likely it is that we can help you.
If you have finished paying for the credit and you are not sure when, the earlier you contact us, the sooner we can investigate.