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Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
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We have a problem with our broker whos representative gave

Customer Question

We have a problem with our broker who's representative gave us misinformation regarding ou insurance policy. On the back of this we decided not to delay in offering our business for sale to a third pary, who accept the invitation. On the back of the information I had been given verbally we went ahead with the sale and then contacted our broker to give a date for sale transfer, which the member of staff had requested us to do. Only to find that the member of staff was no longer there and we are expected to pay the full amount of £6500 remaining on a loan taken out against the policy with no return of premium from the insurer.
We had been fed misinformation by the broker's employee and had we been given correct information at the time we would have delayed approaching the purchaser so we could continue to trade and pay off the remaining installment at the same time continuing to make a trading profit. We feel we have been severely disadvantaged by the Broker. what redress do we have for this situation?
thankyou for your time.
Ella
Submitted: 3 years ago.
Category: Law
Expert:  Alice H replied 3 years ago.
My name isXXXXX and I'm happy to help with your question today. I need to ask you some preliminary questions to be able to help you.

Do you have any evidence of the information you were given? Or was this all verbal? Did you ask for anything in writing?
Customer: replied 3 years ago.


Nothing in writing. all verbal.

Expert:  Alice H replied 3 years ago.
OK.

In relation to the bad advice you were given by the broker there are three steps you can take::

1. Make a formal complaint to the broker and ask for compensation in the sum of £6,500 to cover your losses as a result of relying on the bad advice you were given;

2. If you complaint is unsuccessful you can take the matter to the Financial Ombudsman Service who deals independently with complaints against financial institutions;

3. If you do not want to accept a decision by the Financial Ombudsman Service as a last resort you might be able to take your case to court for breach of contract/misrepresentation/negligence (will need to be investigated). You would usually start civil legal action in the county courts or High Court (in England, Wales and Northern Ireland), depending on the circumstances of the case.

As you will have gathered your chance of success in a complaint or claim against the broker will depend on the evidence of the poor advice you were given.

I suggest that you try and obtain something in writing from the broker to confirm that you were given poor advice. This is crucial if you want to take the matter further to a complaint or court.

However, as soon as possible, you should also inform the broker that you intend to claim compensation so they are under no illusion about your position.

Can I assist further?

Alex
Customer: replied 3 years ago.


Thankyou very much for stating our position in a clear concise way. You advise that I should try to get something in writing that we were given bad advice by his exployee, however if I tell him at the same time that we are intending to take action against against his company surely he is very unlikely to follow this course of action?

Expert:  Alice H replied 3 years ago.
You're absolutely right.

There is nothing wrong with getting the broker to admit in writing that the advice you were given was wrong and then writing back asking him to pay compensation.
Alice H and other Law Specialists are ready to help you
Customer: replied 3 years ago.


Thankyou very much for this advice I have emailed the broker saying that my business partner is very anxious about the situation and would like something in writing to the effect that his ex-employee gave us erroneous imformation and how this could have happened, when it has had such far reaching implication to ourselves!


So we will await his reply!


Ella


 


 

Expert:  Alice H replied 3 years ago.
Its my pleasure to have assisted. You can always come back to me if you need further guidance on the steps. All the best - Alex