How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Ash Your Own Question

Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

hello, Can an independent adviser charge up to £11,000.0 for

Resolved Question:

hello, Can an independent adviser charge up to £11,000.0 for a loan of £1,100,000.00 if they have hidden material information about their fee from me?

Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know what they have hidden from you please?

Customer:

They showed me a page 2 of their terms and condition which particularly stress on receiving a commission from the bank. When I asked for page 1, the broker said that he forgot the page 1 among his paperwork, but left me with the signing page to sign and scan back to him. I did on the understanding that there is no fee from me to be paid except the commission from the lender. We then proceeded to discuss the bank terms and conditions, which included an arrangement fee of 1.75%. I negotiated with my broker that the bank arrangement fee be added to my loan and it was agreed with the bank manager personally. I received a letter from the broker's contact with the bank confirming that their own arrangement fee will now be paid at the end. I believed that it meant that they will be paid their commission at the completion. When the completion happened on the 20th of August, I received a bill of £11,000.00

Alex Watts :

So you were informed it would be added to the loan and the broker misrepresented by billing now - is that right?

Customer:

I asked my broker over the phone and was informed that the bank arrangement fee will be added to the loan, and later they sent a confirmation that the arrangement fee will be added to the loan. I also spoke with the bank manager about this and it was agreed. When I saw a letter from the brokers agent confirming the arrangement fee to be paid at the end, I thought that meant that their own commission would also be paid at the end. I then received a bill for the broker's agent fee saying that their page 1 has the 1% arrangement fee on it. Remember I never received a page 1?

Alex Watts :

Yes indeed. Was this for a business or personal loan?

Customer:

It was a personal loan for my business premises

Alex Watts :

Ok - this is breach of contract by misrepresentation.

Alex Watts :

If he failed to declare that this fee was payable at the end and indeed he represented it was added to the loan

Alex Watts :

You relied on that representation and entered into the contract because of this.

Alex Watts :

He did this knowing it was false.

Alex Watts :

Therefore no, you do not have to pay the fee and indeed you could claim damages from him for breach of contract by false representation

Alex Watts :

He can try and sue you for it - you can set off because you can say he breached the contract by failing to declare it and indeed told you something else and took steps to deceive you.

Alex Watts :

He was dishonest

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

yes please

Alex Watts :

ok?

Alex Watts :

What else would you like to ask me?

Customer:

i wanted to find out what I should say to this broker's agent who keeps writing to me to say that the bill is payable/

Alex Watts :

You write back and say he is in breach of contract by:

Alex Watts :

1) Not disclosing the full document

Alex Watts :

2) Telling you any fee is added to the claim

Alex Watts :

3) Failing to disclose that it was payable at the end

Alex Watts :

4) Making representations that were false

Alex Watts :

Does that help?

Customer:

Thanks it does help. He had sent a letter saying that their arrangement fee will be added to the loan on completion which I thought was the commission we had discussed as well as the bank's arrangement fee. He keeps telling me that I was informed of their arrangement fee in letter.

Alex Watts :

Well I do not think they made it clear, when they ought to have done.

Customer:

Thanks immensely for this clarification.

Alex Watts :

Can I help with anything else today?

Customer:

What do I need to do if they continue to demand this fee and actually take me to court?

Alex Watts :

You can dispute it on the basis I have outlined above 1) - 4)

Customer:

thanks and God bless

Alex Watts :

Is there anything else I can clarify?

Customer:

no, you were clear enough, thanks

Alex Watts :

Great. If I could invite you to rate my answer, the button at the bottom of the screen. Thanks

Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Dear Alex, thanks for your expert advice. I have replied to the company and they insisted on my paying their invoiced amount and did not acknowledge the initial agreement I had with the broker. They also lied that I had paid an admin fee to them, when they negotiated a lower amount through them with the bank. When I confirmed that I did not discuss or negotiate any payment prior to this agreement, I offered to pay the admin fee as a good will gesture and they still refused. I am still waiting for another letter from them as we are now deadlocked.


regards


Christiana

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.co.uk/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.co.uk/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.co.uk/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.co.uk/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.co.uk/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.co.uk/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice