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?
Hello my name is ***** ***** I will help you with this.
For now please let me know what they have hidden from you please?
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
So you were informed it would be added to the loan and the broker misrepresented by billing now - is that right?
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?
Yes indeed. Was this for a business or personal loan?
It was a personal loan for my business premises
Ok - this is breach of contract by misrepresentation.
If he failed to declare that this fee was payable at the end and indeed he represented it was added to the loan
You relied on that representation and entered into the contract because of this.
He did this knowing it was false.
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
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.
He was dishonest
Can I clarify anything for you about this today please?
What else would you like to ask me?
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/
You write back and say he is in breach of contract by:
1) Not disclosing the full document
2) Telling you any fee is added to the claim
3) Failing to disclose that it was payable at the end
4) Making representations that were false
Does that help?
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.
Well I do not think they made it clear, when they ought to have done.
Thanks immensely for this clarification.
Can I help with anything else today?
What do I need to do if they continue to demand this fee and actually take me to court?
You can dispute it on the basis I have outlined above 1) - 4)
thanks and God bless
Is there anything else I can clarify?
no, you were clear enough, thanks
Great. If I could invite you to rate my answer, the button at the bottom of the screen. Thanks
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.