Thread: Who's responsible - broker or Paragon???

Originally Posted by shazzaW

Hi all,

Took out a loan with Paragon but was sold it through a broker HFS Loans.

Have written to Paragon who are wiping their hands of it completely and saying although they provided the loan I need to speak to HFS loans regards the possible mis-sale.

Can anyone advise who I need to be putting my complaint to and - if it's Paragon - whether there is a template letter I can throw back at them to say "it's your responsibility now deal with it!!"

Many thanks in advance for any advices.

shazza

Hello shazza,

You go after the party that sold you the policy initially.

These cases of broker/loan company are a little complicated, in that they will both deny any involvement. They are both as guilty as each other IMHO

There are three angles here to look into

The mis-selling of PPI/ single loaded policy which attracts interest over the whole term. but may not last that long. If it was sold fit for purpose and other indications for mis-selling

Commission based selling, how much did the broker receive in commission as an incentive from the loan company, to apply ppi, this incentive commission may not be disclosed to you even though you paid a brokers fee

The actual agreement needs to be looked at regarding whether or not it is in fact a multiple agreement and that may help your bargaining power

There is no such template as to speak of, but if you post up your letter, others can have a look and assist you if necessary.