Oakwood Solicitors

Secret Commission Claims

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Before 2008, one of the predominant practices in the mortgage and secured loan industry was to pay a mortgage and credit brokers commission payments for introducing prospective borrowers to them.

Generally, mortgage and credit brokers would also, in addition to a commission payment, be paid a fee by the borrower. This fee paid by the borrower acted as a retainer of the broker and should have entitled the borrower to rely on the broker’s advice as given in good faith and being in their best financial interests.

Secret Commission


When may a Secret Commission have occurred?

Unfortunately, often the advice of mortgage and credit brokers was not given in good faith and the advice was often not in the borrower’s best financial interests. Instead, brokers advised borrowers to remortgage based on the highest commission levels paid by lenders.

Whilst the payment of the commission, in of itself, does not give rise to a claim – if the commission payment was not disclosed to you at all and the broker is considered to have been your fiduciary it may give you the right to rescind the contract.

This means that you will be entitled to treat the loan as though it never existed and all payments made under the loan to date will be returned in addition to the commission that was paid to your broker.

Whilst an action for rescission of the entire contract relies upon the commission having been completely secret, there is also another category of secrecy known as ‘halfway house’ cases. This category applies where the fact a commission may be paid is disclosed to you but the actual amount is not.

In these circumstances whilst rescission may not be available, you may still be able to claim compensation under the Consumer Credit Act 1974 for what is called an Unfair Relationship.

When should I take action?

This is a complex area of law and you are advised to contact us for a free review if you feel a Secret Commission may have been paid to your broker and not disclosed to you.

How much will it cost to make a claim?

  • We operate on a Conditional Fee Agreement (CFA), more commonly known as a ‘no-win, no-fee.’
  • If we fail to secure you a settlement, you will not be charged.
  • Any charges will be deducted from your settlement, so you will not need to pay us anything out of your own pocket unless there is reduction in the balance, rather than a cash settlement.



What should I do if I think I have a claim?

If you believe or feel you have a claim, contact us for a free initial consultation regarding your options.

Why choose Oakwood Solicitors?

You will have a dedicated advisor who will see your claim through from start to finish, assisting you in the event of any queries or issues you may have. Your case-handler will also continue to provide regular updates until the conclusion of your claim, ensuring the process is as stress-free and effortless as possible.





If you believe or feel you have been subjected to Secret Commission, contact us for a free initial consultation regarding your options by emailing us on enquiries@oakwoodSolicitors.co.uk, or alternatively, call us on 0113 200 9787.

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Meet the Head of Department

Danielle Lightfoot

Solicitor and Head of Financial Litigation

0113 200 9740

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