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John
John, Solicitor
Category: Law
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Experience:  10 years legal experience
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I have an issue with a third party broker that isn’t

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I have an issue with a third party broker that isn’t regulated by FCA chasing me for £2,200 that I don’t believe I owe them
JA: Where are you? It matters because laws vary by location.
Customer: im in London UK
JA: What steps have you taken so far?
Customer: ive complained to them and I’m refusing to pay them
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I signed a 5 year contract with a new gas provider through this 3rd party broker but was stopped from transferring by my current provider as I was still in contract. I then re-negotiated a better deal with my current provider thinking that I couldn’t change to new company. I told the new company I was staying with my existing provider and that it was within my cooking off period - however there’s no cooling off period if you’re a business. This third party broker now wants to be compensated for 5 years worth of missed payments. I’m convinced they’re incorrect

Hello, how are you? Welcome to JustAnswer. My name is***** am a solicitor and I will be assisting you today. Please note there may be delays in responding as I am away helping other customers but I will get back to you as soon as I can.  I may also need to ask you some clarifying questions to determine the legal position.

Customer: replied 8 days ago.
OK looking forward to hearing frombyou

Thanks for your message, I appreciate it is important to you. A business to business transaction is legally binding once you sign the contract and there is no cooling off period if you change your mind. You will therefore be bound by the contract if you have signed it. However, this contract will be with the provider. The broker will be a separate contract and unless there are clauses contained within the contract which states you owe the broker, then he cannot be "compensated" for 5 years of missed payments.

It is best to check exactly what you signed, and if you owe any liability to the broker. If it is silent on that point, then you may continue to refuse the brokers requests. The broker will then have the option of whether to take the issue to court, which in that case you will need to decide whether to pay or defend the matter.

I hope this helps. Thank you again for visiting JustAnswer, please let me know if you need me to clarify anything or if you have any additional questions. I am happy to help.

Hello, just following up on this to ensure you're satisfied with what you need to do. Please let me know if you need me to clarify anything or if you have any additional questions. I am happy to help. All the best, John

Customer: replied 8 days ago.
Sorry, me again. By the way I run a tiny charity in North London and hardly a multi National but the 3rd party broker is rather aggressive.Anyway, I’m just pasting in a quote from one of the many emails I’ve had from 3rd party broker and interestingly Yu Energy my original supplier is the gas supply and not the electricity supplier. I don’t agree that it was my act or omission that prevented me from leaving but Yu Energy.
It was the act or omission of The Flower Bank (London) CIC that prevented the electricity supply from transferring to Total Gas & Power Limited.
Customer: replied 8 days ago.
JohnI really am at a loss because
how could I have an enforceable contract with the 3rd party broker if I was prevented from leaving my original contract?The contract with my original provider would have ended on 8 June at which point I was then free to go with 3rd party’s contract and not before. Surely I can’t have 2 contracts covering the same gas supply?That is my area of contention

I understand. I am of the opinion you do not owe the broker due to there not being an enforceable contract with him specifically. Additionally, if it was the gas supply which would render it impossible for you to enter into a new contract due to a renewal with your existing one, again I cannot see how this would be possible and why or how you should be made to pay for both. It is your decision but it is a situation whcih you should ultimately defend, if it comes to it.

Customer: replied 8 days ago.
JohnThank you I know I’m right but this company is not regulated by FCA or any Ombudsman which means it’s just me against them which is scary but I think they’re by and large trying it on

I would suggest you defend all claims and report them to Trading Standards.

Customer: replied 8 days ago.
Thank you I’d forgotten about Trading Standards I’ve tried everywhere including Citizens Advice who basically said you shouldn’t have signed the contract which I thought not only unhelpful but stating the bleeding obvious you’ve been fab thanks

Unregulated brokers can be difficult to deal with, so you may just have to call their bluff to see if they will issue a claim against you. However, you can defend any claims safe in the knowledge that any claims would effectively be brought without merit. It is true you should not have signed the contract but that is beside the point and the issue now needs to look beyond that and whether it is actually enforceable or not. I believe you have good grounds for a defence and wish you well.

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