Life Insurance Brokers fee question - threatens - C/Court

[jotty]

What a few weeks we have had, the worst I can recall hence my many posts on here, anyway latest problem need help please.

 

We took out life insurance via a broker with a new mortgage nearly 3 years ago.

 

 

A few months back I realised we could get it cheaper so tried to cancel the policy.

 

 

The brokers got very shirty and have pointed out that in our agrement with them we have to retain it for 38 months (Mar 2010 end) or they would charge us the commision fee £800.

 

At th time we took the thing out neither of us can recall this being mentioned however it appears its in the demands and need bit which we signed.

 

This morning we have a county court claim from the brokers for the £800, so question is, and sorry if its obvious, are we stuffed or should we try and reinstate the policy or fight the fee.

 

Thanks

[geoff1248]

You said that to "tried" to cancel the policy so this assumes that you did not succeed and the policy is still live. So what is the broker trying to sue you for if the policy is still running?

[jotty]

I wrote to Legal & General informing them of the cancellation, never heard anything from them so presumed all was ok,

 

 

until broker claimed we where contracted to retain it for 38 months.

 

At the time I did explain we only needed top up life insurance as I am already well covered but the broker insisted on the new policy.

[geoff1248]

Have you got a copy of the agreement you signed? If so can you post it on this site (with all the personal details deleted).

[bobbyh99]

This seems very odd! Can we see what you have signed?

[jotty]

This is the relevant page, part 5.2 which we signed and which forms the basis of the brokers claim. I guess its his fee from the life insurance company, but again I dont recall him mentioning this.

rmf007.pdf

Edited September 1, 2009 by jotty

[bobbyh99]

Hi jotty

 

I am no expert on these things but haven't come accross this before.

The broker will get his commission from the insurance company after the policy goes inforce. If you subsequently cancel/lapse the policy within a certain period of time (which you are free to do) then the insurance company will claw back some of the commission from the broker.

 

Unfortunately, I am not sure of the legalities of what you have signed. Hopefully someone will be along soon to assist.

 

I have had many life insurance policies over the years arranged by brokers/IFA's/mortgage consultants and despite cancelling them for cheaper deals, never had to pay any broker anything, then again I never signed anything with them either!!

 

Did you pay a brokerage up front for his services, or on completion of a mortgage deal?

 

BobbyH

[geoff1248]

It states that RML "may waive the fees.......". I find it rather strange that this is virtually a blank cheque as it does not actually state anywhere(?) what their fees are.

I would firstly ask them for a copy of the document you signed, don't let on yet that you already have a copy. You never know they may well not have a signed copy. Secondly I would ask them to detail the actual loss that they reckon they have incurred. It may be worthwhile contacting the insurance company and ask them what fees the broker will have earned and also what he will have lost by early closure.

[jotty]

Thanks Geoff, will do.

I can only think that the ins company are witholding his fees until we pay enough to justify it to stop them paying him after say a month and we stop it leaving legal and gen out of pocket.

[jotty]

Can't believe my luck at the mo, I must have a record for most threads anyway,

 

Got a letter today from a guy who arranged life insurance for me back in july 06, I have posted on the insurance thread about it possibly being missold, however I decided to cancel the policy recently and get a cheaper one.

 

The broker has been making threats about me owing him an arrangement fee and pointing to a line in the initial documents stating that I had to keep the policy for min 38 months or pay him £890, which seems a bit odd.

 

 

When I told him I would be enquiring with the ins company I heard nothing more.

To my utter surprise he now informs me that he has obtained judgement and intends to enforce collection unless I pay.

 

Now I am pretty ok with theses things having claimed charges over the years, but am 101% certain I did not receive any court papers or notification of the judgement being made in my abscence.

 

Is there anything I can do such as ask the court to reinstate the claim so I can defend it (if it ever existed).

[GhostDebt]

Have you been given a claim number by this person and also been told which court made the judgement?

I would ask them to provide this information and then ring the court to confirm the information is genuine.

If it is, then you should be able to get it set aside as you were not aware of the action (Letters could have been sent to a different address?).

If it isn't, then they are in trouble, I suspect, but more experienced people should be along to offer better advice shortly.

 

Regards

[jotty]

I have spoken to the guy from the brokers, he claims to have submitted docs to the court on 28th August and has given me a court ref. I asked him for proof of postage etc but he would only say that it was down to the courts.

I have checked with all my family and have every cupboard open in the house and can find no such docs. As far as I am concerned now I never recieved the papers.

 

Can anyone please tell me how I go about asking for a stay based on this.

 

Thanks

[supasnooper]

If you know which court the broker applied to for the CCJ, then give them a call to see if they can help with the details. Try the court most local to the broker.

 

If they can't, have a look at this website (costs £8.00 though ) - CCJs, court orders & fines - Search yourself and others - Trust Online

 

Have a look at these links as well for info on setting aside CCJ's -

 

Setting aside the original CCJ of your CCA

 

CCJ removal inc. step by step guide