[ Post New Message | Post Reply to this One | Send Private Email to fairer financial world | Help ]

Response to Saved in the nick of time

from fairer financial world (fairerfinancialworld@hotmail.com)
Sub prime borrowers considering a loan(or mortgage) secured on your home please note: -

Some tips for ensuring you are with a legally compliant broker

Before signing anything ask the broker to provide you, note them

1 Data Protection License number 2 Consumer Credit License number 3 Mortgage Code Compliance Board (MCCB) Number 4 Ask to see a copy of their Professional Indemnity Insurance and ensure the expiry date has not lapsed. 5 Get their Terms of Business letter and business card 6 A detailed summary of their reasons why recommending this product 7 Note the advisors related qualifications if not mentioned on the business card

If the broker is charging you any fees not required by the lender as stipulated on the offer or agreement ensure it is written down how much they will receive from the lender(should really be within item 6 above).

If the broker is awkward or evasive about you needing any item(s) from this list DO NOT USE THEM.

Any REPUTABLE broker when asked will quite happily provide the information to you and will understand your unease.

If the broker says they do not have number 3 but can provide all other information. Many Secured Loan companies do not have a MCCB license and these companies do not require introducing brokers to have it either. Because they claim the finance to be a loan and not a mortgage (what is the difference when secured on property I would ask?) - USE THEM AT YOUR OWN RISK - YOU HAVE BEEN WARNED. In short the MCCB certificate confirms to you they have provided evidence to the Compliance Board of fairness and have demonstrated good knowledge regarding advice.

If you do all the above then there is some form of protection in place. Should you have an issue at a later date then you have a process of complaint and if found in your favour by independent ajudicators you have a claim of compensation. These are in addition to your normal legal rights and can be a lot cheaper than solicitors.

finally,

Shop around with the insurance companies regarding payment protection. This is highly profitable for brokers and some BAD brokers even have the lump sum fee added to the Loan increasing their commission whilst the policy generally doesnt cover you for the full term! - this is not necessary and if you are told that this is a requirement DO NOT PROCEED, any RESPECTABLE insurance company will accept monthly payments.

(posted 7504 days ago)

[ Previous | Next ]