Sub Prime Mortgages/loans and secret commission

[the main man]

Have just read this today and cant find any further info? just wondered if anyone knows of or had any experience with this?

 

From the face of it there are a lot of people who have taken loans/mortgages through brokers and have not been informed of the commission the broker received from the deal.

 

The broker & lender have a duty to inform the client of how much commission the broker got from the deal, if however they weren't informed it would be classed as a bribe and has left them open to claims for the return of any commission and any subsequent losses if they were repossessed.

 

 

House of Commons Hansard Debates for 16 Oct 2001 (pt 5)

Edited July 12, 2008 by the main man

[andrew1]

Has anyone actually put a claim to a finance company in relation to this hidden brokers fee being a bribe?

 

I paid a brokers fee of £3500 for a loan thinking that was the norm, but I wrote to the Broker to ask about this and sure enough, not only did I get charged the £3500 which they got for the introduction they also picked up a 'commission' from the loan company too. Now if you read the above linked chat in Parliament about this, it is not exactly 'proper' - anyone who took out a loan through a broker ought to ask the broker...not sure if it means the brokers fee of £3500 can be had back plus the hidden one or just the hidden one, but..... Oh don't you just love all this ..... poetic justice me thinks, that'll teach some of these gits to do what they do to us....

 

 

Sarah

 

This needs constantly ' bumping'

Edited July 23, 2008 by andrew1

[the main man]

"I hope that she will undertake to explore them further. Claims like that by Mr. and Mrs. Rozak are outstanding against the "I" Group, which is owned by GE Capital, which bought it from the Royal Bank of Scotland, and they could be worth about £1.25 billion. Such claims are every bit as good as the Rozaks' claim, and would stand up in court against the group because of the way in which homes have been repossessed by companies that had no legal ownership of the loans outstanding and charged against those properties."

 

1.25 billion and that is just 1 company!! it does say however that the Rozacs claimed both commissions back totaling £8000

Edited July 24, 2008 by the main man

[the main man]

Hurstanger v Wilson [2007] EWCA Civ 299

 

http://consumeractiongroup.co.uk/files/AlansDocs/WilsonvHurstanger.pdf

[the main man]

Non status lending- OFT Guidelines for lenders and brokers 1997

 

http://www.oft.gov.uk/shared_oft/reports/consumer_credit/oft192v2.pdf

[OLIVE.FAMILY]

I am really intrigued by this. We initially contacted TML(The Mortgage Lender) after seein a TV ad for a re-mortgage We thought that they would search the market and come up with a suitable lender. This cost us about £2600. They came up with Kensington and we accepted it.

 

Looking into it all now it turns out that TMl were in actual fact Kensington. Can I do anything about this then ???

 

 

olives xx

[OLIVE.FAMILY]

Ok now is there anything we can do about this. TML were supposed to be acting on my behalf but it is obvious they were not. TML have shut dowm though so do I aim this at KMC.

 

olives xx

[FANTASY CHARGES]

this lot of links is literally hot off the press "

 

 

The Office of Fair Trading: Second charge lending

 

 

• Consultations
  

 

 

 

Second charge lending The OFT is consulting on draft guidance for businesses engaged in second charge lending.

 

 

 

• Press releases
  

 

 

 

OFT consults on second charge lending guidance The OFT has today launched a consultation on draft guidance for businesses engaged in second charge lending.

 

OFT seeks initial views on review into local and regional media merger regime The OFT is today seeking views from interested stakeholders on the main scope of its review into the local and regional media sector.

[FANTASY CHARGES]

see also this link

 

http://www.oft.gov.uk/shared_oft/consultations/oft1057con.pdf

 

 

also hot off the press

[andrew1]

Nice work Fantasy

[Doc2527]

Hi

 

Can anyone help me with my query regarding secret commissions.

I had take out a couple of loans through I Group and GE money,a broker arranged these loans. (I currently have a remortgage arranged though a broker)

These loans have been paid and settled in full(except of course the mortgage).

Can I still ask for information on secret commissions after these loans have been settled?

Is this done via an SAR to the brokers?

 

Regards

 

Doc

[Doc2527]

Should I take this through a legal claims company such as i-smart?

[42man]

Answer is YES Doc.....!!

[jdene]

Hello I have read through this thread and find it very interesting it has also made me check through my documents it dose say that the broker will recieve a commision from the lender on completion on top of the £1,950 that I paid but it dose not give any indication of how much or how it is paid ie. is it accounted for in my repayments or is it a seperate amount paid by the lender at thier expense, also I found that the solicitor who I was allocated was also actig on behalf of the lender is this normal ? We are like many others in trouble with our mortgage and it would be good to know if we have any defense to the reposetion of our home, as we have the added burden of my wife suffering from cancer and the worry is verry stressfull for her at the moment.

another thing I have just noticed is that some of the figures are different from the original breakdown to the actual breakdown the solicitor supplied on completion.

Any advice would be welcomed

[jdene]

Bump

[42man]

It is paid for by you.....out of the interest you are paying....a SAR sent requesting the underwriting sheet is what to go for....

[jdene]

Thank you 42man will get one off today see what it turns up I assume this should go to the Mortgage company

[jdene]

Hi 42man They have responded saying the underwriting sheet is not part of an SAR request as it is thier information and not mine I am aware that it can be forced out of them in a court case under the disclosure of information but not that far advanced yet, however on one of the other mortgages they do say they are paying the broker a commission but to my way of thinking it implies that they are paying ie. out of thier own pockets which we know they are not so, do we have a right to aproach the broker and request they return one of the fees they have recieved as in effect they have recieved two fees from me, one up front and the other worked into my mortgage, there must be something to protect us from paying the broker twice, just my opinion and probably wrong but thought i would ask.

Dene

[the main man]

BBC NEWS | Business | Court lets woman off £8,000 loan

 

'Secret commission'

The credit card in question was branded with the logo of Sunderland football club and was sold to Ms Thorius in the club's shop in 2002.

The PPI policy was sold to her at the same time, to pay off her account if she fell ill or was made redundant.

But, critically, she had not been told that MBNA would be receiving regular commission payments from the insurance provider ITT London & Edinburgh, a subsidiary of the Aviva insurance group.

Judge Smart agreed with the argument of Ms Thorius's barrister, Paul Brant, that this "secret" commission meant the credit card deal was unfair and therefore in breach the Consumer Credit Act.

This point could potentially undermine many other agreements where PPI has been sold by the lender alongside a loan.

These include car finance deals, other personal loans and even mortgages.

"This practice is believed to be widespread and formed part of the Competition Commission's decision to prohibit the co-sale of PPI with credit in its report published on 29/1/09," Mr Brant noted.

"This point is likely to affect many thousands of individuals within England and Wales," he added.

[johannab]

Hi 42man They have responded saying the underwriting sheet is not part of an SAR request as it is thier information and not mine I am aware that it can be forced out of them in a court case under the disclosure of information but not that far advanced yet, however on one of the other mortgages they do say they are paying the broker a commission but to my way of thinking it implies that they are paying ie. out of thier own pockets which we know they are not so, do we have a right to aproach the broker and request they return one of the fees they have recieved as in effect they have recieved two fees from me, one up front and the other worked into my mortgage, there must be something to protect us from paying the broker twice, just my opinion and probably wrong but thought i would ask.

Dene

 

Hi Jdene, sorry to barge in on this but I have a similar problem ...I have sar'd GE and got back sheets with broker and commission info 'blacked out'. I have asked them to supply me with the blacked out info and they have refused saying that I am on a 'fishing expedition' (their actual words!).

I was wondering if you got anywhere with getting the underwriting sheet out of them . I have posted my problems on the last page of 'ge money and secret commissions' thread.

 

ps I can't track the broker down,he is no longer in business.The mortgage was redeemed a good few years ago.

 

I appreciate any advice you can give me,

Jo

[42man]

Your agreement is between you and the company (not the broker)....as you have paid the fees then you should be entitled to know...using CPR31.16 is the route to go, but these companies do not like you having this sheet.... - READ THIS - Wilson v Hurstanger | OUT-LAW.COM by Pinsent Masons LLP They have, as is said here a fidiciary duty to let you know what the amount is....!!

[johannab]

Thank you 42man

 

I will draft a letter and get it sent off tomorrow. I will post back here when I get a response,

thanks again,Jo

[42man]

http://www.consumeractiongroup.co.uk/forum/swift-advances/197346-underwriting-sheet-using-cpr31.html

[jdene]

Hello again all sorry I havent been here lately but my wifes condition has worsened so my time has been for her lately but will be moving forward with things now, we need a break and its about time these people repayed what they have wrongly taken if they have wrongly taken anything that is dont want to be acused of wronfull acusations do we lol.

regards

jdene

[Sparkie1723]

Contrary to what Swift have stated in courts under oath that they do not pay commission ......now that many folk have absolute proof tht they do pay and have paid BIG commission ( commission means paid agents) and their company accounts also say they do, over £19 million worth plus the fact that it has been declared under oath that they do not....would this not be considered by the Courts as more of a "Disguised Secret Commission"? Which is even worse

 

And as per Wilson v Hurstanger and Wilson v First Counties Trust would not folks agree those peoples agreements would be considerd unenforceale.

 

 

sparkie