In a thread a few weeks ago the subject of fees charged by mortgage brokers was discussed. I mentioned that the old rule whereby all but 5 had to be returned to the client if the mortgage did not proceed had been abandoned. I checked with the FSA who agreed with this opinion and then with the Office of Fair Trading who sent the following reply
*You are referring to section 155 of the Consumer Credit Act 1974 (CCA). Under that section a credit broker must return the fees he is paid less 5 if the customer does not sign a credit agreement within 6 months.
The recent Financial Services and Markets Act (FSMA) disapplied that rule to someone who is an "authorised person" or an "appointed representative". The FSMA defines those terms. Therefore, the rule would apply to a credit broker who is not "authorised" or is not an "appointed representative" or is not a "qualifying broker". You may wish to check with the FSA as they deal with FSMA related queries. *
Rob Graham