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Back in 2006 I was made redundant. I knew it was coming so trained as a Mortgage Advisor. I was a self employed advisor and belonged to a network.
The network helps make sure you are compliant, deals with the FSA/FCA, provides PI insurance and provides you with the systems for sourcing insurance and mortgages. The network charges a fee and takes a percentage of any commission you earn to pay for this.
I joined network A at the start of 2007. Things went well until just before summer 2008 when the financial markets became difficult. The network failed to pay me several thousands of pounds worth of commission and they went bust.
I had to move on quickly so joined another network. I signed an agreement with the network - not as a limited company.
The agreement contained a clause that stated that I would pay them for PI insurance and also their costs. They would take these out of the commission i earned.
I bumbled along until 2012 as a member of this network and gave them the three months notice to terminate that they required.
The network subsequently sent me an invoice that includes fees and charges that were not contained in the agreement. i.e. a £500 termination admin charge, a £450 fee for not earning commission above a set amount. These charges set the account into arrears and they then began to charge unauthorised borrowing costs of between £100 and £500 per month.
None of these fees or charges were set out in the agreement i signed and the agreement does not refer to any document where these charges are listed. I challenged the firm on these charges and did not hear anything else for 4 years - Sept 2016.
They are now threatening legal action for recovery of just over £2000. I have advised them that the charges they have applied are not mentioned in the contract or any schedule attached to it and are therefore not part of the agreement. I have conceded to them that the charges for PI insurance are mentioned in the agreement and therefore I agree to pay those. When I look at the commission earned on the account and the amount of PI insurance payments due I find that there is a surplus due to me of just over £100.
I'm not interested in the £100. I just want to call it quits.
My question is this - If the contract does not contain any reference to some of the fees or charges they say they are owed then do I still owe them? Should the contract, or a schedule attached to it, set out specifically what can be charged and how much it will be?
Any input would be welcome.
The network helps make sure you are compliant, deals with the FSA/FCA, provides PI insurance and provides you with the systems for sourcing insurance and mortgages. The network charges a fee and takes a percentage of any commission you earn to pay for this.
I joined network A at the start of 2007. Things went well until just before summer 2008 when the financial markets became difficult. The network failed to pay me several thousands of pounds worth of commission and they went bust.
I had to move on quickly so joined another network. I signed an agreement with the network - not as a limited company.
The agreement contained a clause that stated that I would pay them for PI insurance and also their costs. They would take these out of the commission i earned.
I bumbled along until 2012 as a member of this network and gave them the three months notice to terminate that they required.
The network subsequently sent me an invoice that includes fees and charges that were not contained in the agreement. i.e. a £500 termination admin charge, a £450 fee for not earning commission above a set amount. These charges set the account into arrears and they then began to charge unauthorised borrowing costs of between £100 and £500 per month.
None of these fees or charges were set out in the agreement i signed and the agreement does not refer to any document where these charges are listed. I challenged the firm on these charges and did not hear anything else for 4 years - Sept 2016.
They are now threatening legal action for recovery of just over £2000. I have advised them that the charges they have applied are not mentioned in the contract or any schedule attached to it and are therefore not part of the agreement. I have conceded to them that the charges for PI insurance are mentioned in the agreement and therefore I agree to pay those. When I look at the commission earned on the account and the amount of PI insurance payments due I find that there is a surplus due to me of just over £100.
I'm not interested in the £100. I just want to call it quits.
My question is this - If the contract does not contain any reference to some of the fees or charges they say they are owed then do I still owe them? Should the contract, or a schedule attached to it, set out specifically what can be charged and how much it will be?
Any input would be welcome.
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