What do we mean by ‘non-disclosure of commission’?
In a previous case, the Court ruled that failure by the lender to tell the customer about high commissions rates made the relationship between the lender and its customer unfair under the Consumer Credit Act 1974
Have you been advised to buy a financial product or service that paid excessive commissions you were unaware of ?
It is sadly true that many financial advisors, accountants and brokers have earned substantial commissions by recommending financial products that are not suited to their client’s needs. In many instances, the investment advice given has proved toxic and financial losses have resulted.
What does a financial intermediary do?
Financial intermediaries are professionals who sit between the client and the major financial institutions and use their expertise to recommend financial products and services. Customers often pay a pre-arranged fee for this service which could be a significant amount.
The financial advisor’s main task is to inform the client of the level of risk involved in any advice they provide. The financial advisor must always
- Ensure there is no conflict of interest in any advice they provide.
- Act in the best interest of the client at all times.
- Not make a profit from their clients that the client is not aware of.
- Provide services of a professional standard
- Disclose any profit made to their clients
- Act in accordance with the standard reasonably expected of an independent Financial Adviser.
The payment of undisclosed commission to financial advisors was a well-kept industry secret between the financial advisors and the major financial institutions. These commission payments were in addition to any arrangement fee that the clients had already agreed with his advisor. By accepting additional commission payments, that the client was unaware of, the financial advisor had ceased to act in the customer’s best interests. This arrangement allowed the advisor to make major financial gains from the recommendation of products or services that may not have been right for the client.
The result of this commission structure between the financial advisor and the financial institutions is that the relationship between the lender and the customer becomes unfair.
If you feel that you have suffered financially from such an arrangement then please contact Goldman Knightley today, our team of financial mis-selling experts will quickly establish if you have a claim. All you have to do is provide some brief details of any lenders you had credit with. Then we can start investigating on your behalf.
Is there a time limit on such claims?
For the best chance of success for a claim on your behalf, the agreement should either still be active or you should have finished paying for within the last six years.
If you are unsure whether your particular case is eligible, don’t worry! We can still make an enquiry on your behalf
You can get a refund for the secret loan Commission.
The bottom line is that non disclosed commissions paid by your mortgage, or secured loan provider must be repaid as compensation to you. These commission payments were typically 10% of the mortgage or loan value. If you took a loan with any of the leading lenders, you will probably qualify for a return of that commission and any interest that has accrued.
To find out if you have an eligible claim contact us today on 01204 563 533 or fill in the simple form on this page and find out if you qualify for a refund.